Retirement

Buy a Medigap Policy to Supplement Medicare

1.

1. Pick a letter. You have nine choices: Coverage and prices generally increase as you move through the alphabet from Plan A to Plan G; plans K and L are high-deductible policies, which can save you money on premiums but have higher out-of-pocket costs. Most popular is Plan F, which tends to offer the best balance of coverage and price (go to www.medicarerights.org for details).

2. Check the pricing method. Premiums for "attained-age" policies increase as you get older. Premiums for "issue-age" policies increase with health-care inflation but not because of your age. "Community-rated" policies are similar to issue-age policies, with everyone in the community paying the same price regardless of age.

3. Compare prices. Plans with the same letter offer exactly the same coverage. Most state insurance departments list prices for medigap policies in your area, or use the Medicare Options Compare tool at www.medicare.gov/mppf.

4. Pick the lowest-cost issue-age or community-rated policy.

NEXT: Roll Over a 401(k)

JUMP TO:


Finance


Credit


Retirement


Investing

FINANCIAL TOOLKIT MAIN PAGE

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 25 Cheapest U.S. Cities to Live In
places to live

The 25 Cheapest U.S. Cities to Live In

Take a look at our list of American cities with the lowest costs of living. Is one of the cheapest cities in the U.S. right for you?
October 13, 2021
4 Big Retirement Blunders (and How to Avoid Them)
retirement

4 Big Retirement Blunders (and How to Avoid Them)

It’s too bad, but financial advisers see these four mistakes all the time. Don’t fall into the same traps.
October 6, 2021

Recommended

The Best Fidelity Funds for 401(k) Retirement Savers
Investing for Income

The Best Fidelity Funds for 401(k) Retirement Savers

Fidelity funds are renowned for their managers' stock-picking prowess. We rate Fidelity's best actively managed funds that are popular in 401(k) plans…
October 25, 2021
From EBRI's CEO: What's on Retirees' Minds
Empty Nesters

From EBRI's CEO: What's on Retirees' Minds

Retirees feel more comfortable spending from steady sources of income rather than tapping their nest egg.
October 25, 2021
How Snowbirds Can Be Taxed as Florida Residents
retirement

How Snowbirds Can Be Taxed as Florida Residents

If you live in a high-tax state during the summer but winter in Florida, you can save big bucks by establishing residency in the Sunshine State.
October 25, 2021
Even If You Already Have Medicare, Don’t You Dare Skip Open Enrollment
Medicare

Even If You Already Have Medicare, Don’t You Dare Skip Open Enrollment

It’s the perfect time to think about what’s changed in your life and with your health care plan. After looking at these four issues, you might find th…
October 22, 2021