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ALL ABOUT MEDICARE SUPPLEMENTS IN AMERICA
- Michael Braden
- Jan 10
- 7 min read
Michael T. Braden January 7, 2026 Medicare Supplements
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As we begin 2026, I thought it was time to take a closer look at Medicare Supplement Insurance and update everyone on the current state of Medicare Supplement and Medigap plans in America.
A little over 50% of Medicare Beneficiaries have Medicare Supplement/Medigap Insurance, often called Medigap Insurance. These policies are designed to work alongside your Original Medicare benefits, covering the financial gaps that Original Medicare leaves behind. Historically, beneficiaries had a wide array of lettered plans to choose from, each offering a different level of standardized coverage. This standardization ensures that a Plan G from one carrier offers the same benefits as a Plan G from another.
Over time, federal regulations have adjusted these options to modernize the system and manage costs. The most significant changes have concerned which plans can cover the Medicare Part B deductible. This shift has fundamentally altered the landscape, moving the spotlight away from the once-dominant Plan F and illuminating the modern value of Plan G.
REMEMBER WHEN PLAN F WAS THE BEST AND MOST POPULAR MEDICARE SUPPLEMENT PLAN?
For decades, Medigap Plan F was the dominant option in Medicare supplements. Its popularity was straightforward: it offered “first-dollar” coverage. This means that from the moment you sought medical care, Plan F paid for everything that Medicare approved but did not fully cover. You had zero out-of-pocket costs for deductibles, copayments, or coinsurance.
Beneficiaries loved the peace of mind that came with Plan F. You paid your monthly premium, and in return, you never had to pull out your wallet at the doctor’s office. This convenience made it the default choice for millions of older adults who sought the most comprehensive protection available, regardless of the monthly cost.
THE IMPACT AND FALLOUT OF MACRA IN 2015
The turning point for Plan F was the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). This federal law aimed to reduce healthcare overutilization by ensuring that beneficiaries have some “skin in the game.” The logic was that if patients had to pay a small deductible, they might be more mindful of their medical usage.
As a result, as of January 1, 2020, Medigap plans that cover the Part B deductible were no longer allowed to be sold to newly eligible Medicare beneficiaries. This effectively closed the door on Plan F for anyone turning 65 or becoming eligible for Medicare on or after that date. While those who were already eligible before 2020 can still buy or keep Plan F, the pool of potential new members has vanished.
HOW MEDICARE SUPPLEMENT PLAN G OVERTOOK PLAN F AS THE BEST AND MOST POPULAR MEDICARE SUPPLEMENT PLAN IN THE U.S.
Once Plan F was no longer available to new Medicare Beneficiaries who turned 65 after January 1, 20200, Medicare Supplement Plan G naturally rose to take its place. Plan G is virtually identical to Plan F in terms of coverage, with one solitary difference: it does not cover the Part B deductible. Plan F automatically paid the Annual Part B Deductible for individuals. This was convenient, but it is not worth the cost. And, the government, and Medicare is part of the government after all, wanted the same rules for everyone. This led to the discontinuation of Plan F and Plan C for new Medicare beneficiaries effective January 1, 2020.
For new beneficiaries, Plan G offers the most comprehensive coverage currently available. It covers your Part A deductible, Part A and B coinsurance, skilled nursing facility coinsurance, and even Part B excess charges. Because it mirrors the rich benefits of Plan F so closely, it has become the new “gold standard” for those seeking maximum protection against unexpected medical bills.
RECENT TRENDS WE HAVE SEEN WITH MEDIGAP PREMIUMS
The closure of Plan F to new members has created a “shrinking risk pool.” In insurance, stability comes from a continuous influx of new, younger, and generally healthier members to offset the claims of older, sicker members. Since no new Plan F policyholders are joining, the existing group of policyholders is aging together.
As this group ages, it naturally requires more medical care, resulting in higher claims. To cover these costs, insurance carriers must raise premiums. Consequently, Plan F rates are increasing more rapidly than Plan G rates. Plan G, by contrast, is open to all new 65-year-olds, thereby keeping its risk pool diverse and its premiums more stable.
A QUICK GLANCE AT THE DIFFERENCES BETWEEN PLAN G AND PLAN F
When you compare the two side by side, the similarities are striking. Both plans cover:
Medicare Part A coinsurance and hospital costs
Medicare Part B coinsurance or copayment
Blood (first 3 pints)
Part A hospice care coinsurance or copayment.
Skilled nursing facility care coinsurance
Part A deductible
Foreign travel emergency (up to plan limits)
The only difference is the Part B deductible. In 2026, the standard Part B deductible is $283. With Plan F, this is paid for you. With Plan G, you pay this amount out of pocket annually. Often, the annual premium savings you get with Plan G far exceed this small deductible amount, making Plan G the more mathematically sound choice.
THE ASTOUNDING GROWTH OF MEDIGAP PLAN N
While Plan G captures the majority of the market, Plan N has emerged as a strong contender for the budget-conscious consumer. Plan N offers lower premiums than Plan G in exchange for a cost-sharing structure.
With Plan N, you pay the Part B deductible (just like Plan G), but you also have copayments of up to $20 for some doctor’s office visits and up to $50 for emergency room visits that do not result in admission. Why do we say up to $20 for an office visit? That is easy, there are about 12 different codes the doctor's office can use for an office visit, each code has a different dollar amount, from $0 on up to a maximum of $20. Each doctor is different, and there are no strict rules; if someone is greedy, they will charge the extra fees. There are no strict rules; if someone is greedy, they will charge the extra fees. There are no strict rules; if someone is greedy, they will charge the extra fees. There are no strict rules; if someone is greedy, they will charge the extra fee of $20. Many doctors charge $0.
Additionally, Plan N does not cover Part B excess charges. For healthy seniors who do not visit the doctor frequently, Plan N can provide significant monthly savings while still offering robust catastrophic protection.
ARE THE HIGH DEDUCTIBLE PLAN G (HDG) AND PLAN F (HDF) WORTH LOOKING AT?
For those looking to minimize monthly expenses, both Plan F and Plan G offer high-deductible options in many states. These plans require you to pay a substantial deductible ($2,950.00 in 2026) before the plan begins to pay anything.
These options are best suited for beneficiaries with significant savings to cover the deductible in the event of a major health event, but who prefer a very low monthly premium. If you are generally healthy and live in a state where these plans are available, they can be a strategic way to self-insure for small costs while retaining a safety net for large hospital bills.
LOOKING FORWARD AND TRYING TO PROJECT WHAT WILL HAPPEN TO PLAN F IN THE FUTURE?
The future of Plan F is one of gradual decline. It will not disappear overnight, and those who have it can keep it. However, the premiums will likely continue to rise disproportionately compared to other plans.
We are already seeing significant rate increases for Plan F in many states. As the price gap between Plan F and Plan G widens, more members will likely leave Plan F, further accelerating the rate increases for those who remain. It is a cycle that makes Plan F less attractive with each passing year.
THE BEST WAY TO CHOOSE BETWEEN PLANS F, G, AND N.
Choosing the right plan depends on your eligibility, budget, and risk tolerance.
Choose Plan F only if you were eligible for Medicare before 2020 and the premium is comparable to Plan G plus the Part B deductible (which is rare).
Choose Plan G if you want the most comprehensive coverage available to new enrollees and want to eliminate almost all unpredictable medical costs.
Choose Plan N if you are willing to pay small copays in exchange for a lower monthly premium.
Ultimately, the best way to determine the right fit is to compare real-time quotes for each plan. Then involve your Family Members in the decision and determine what makes the most sense for you as an individual. Personally, I think Plan G makes the most sense over the long haul. Plan N might be good for the next 10 years. Still, as we age, we see more doctors, more often, so Plan G usually makes the most sense later,
It is important to remember that if you have a Plan N, you can apply for a Plan G any day of the year; however, if you do not live in a state that has adopted a Medicare Supplement Birthday rule, you will have to pass underwriting for any new policy. And many times, people are denied for a variety of reasons, including their medications, Their Health Risks, and their past, current, and future health history.
WRAPPING THINGS UP
Over the years, my experience is that couples always want the best coverage for their spouse and are often willing to have a lower policy for themselves, yet 99% of couples end up with the same plan for both. It makes sense, and it is easier for everyone involved.
Plan N can save you money, and if the premium increases that Plan G has had the past few years, Plan N could become the best value for everyone, but I do not think we are there yet. Plan N is a great option, and Plan G is more comprehensive. People choose insurance to have a partner who assumes the risk of their healthcare in exchange for a monthly premium, and Plan G offers lower risk.
At Braden Medicare Insurance, we are happy to speak with anyone who has questions about Medicare, plan options, or how to compare them in the most straightforward, most effective way. Please email mike@bradenmedicare.com anytime, call us at (480) 225-1393, or complete the contact form on our website, www.bradenmedicare.com.
