The Best Medicare Supplement (Medigap) Plans in Alabama
- Choose the right Medigap policy with this review of Medicare Supplement Insurance plans in Alabama. Medigap helps pay for coinsurance, deductibles and other Medicare costs.
More than a third (34%) of Original Medicare beneficiaries in Alabama are enrolled in Medicare Supplement Insurance.1 Also known as Medigap, this type of optional health insurance policy is sold by private insurers and available to those who have Original Medicare (Part A and Part B).
Original Medicare helps pay for medically necessary services such as hospital stays, treatment for illnesses, diagnostic tests and physician services. Some of the remaining costs — such as premiums, deductibles and copays — can be covered through a Medigap plan.
You can find Alabama Medicare Supplemental Insurance plans where you live by comparing plans from several different insurance companies online.
What Are the Best Alabama Medicare Supplement Plans?
Insurers are permitted to sell 10 different types of Medigap plans in Alabama, but not every plan is offered by all companies. Medigap plans in Alabama are standardized by letter category, which means policies offered within the same category cover the same expenses.
|Medicare Supplement Benefits||A||B||C1||D||F1||G||K||L||M||N|
|Part A coinsurance and hospital costs||✓||✓||✓||✓||✓||✓||✓||✓||✓||✓|
|Part B coinsurance or copayment||✓||✓||✓||✓||✓||✓||50%||75%||✓||✓|
|First 3 pints of blood||✓||✓||✓||✓||✓||✓||50%||75%||✓||✓|
|Part A hospice care co-insurance or co-payment||✓||✓||✓||✓||✓||✓||50%||75%||✓||✓|
|Co-insurance for skilled nursing facility||✓||✓||✓||✓||50%||75%||✓||✓|
|Medicare Part A deductible||✓||✓||✓||✓||✓||50%||75%||50%||✓|
|Medicare Part B deductible||✓||✓|
|Medicare Part B excess charges||✓||✓|
|Foreign travel emergency||80%||80%||80%||80%||80%||80%|
|1. Plans C and F are not available to new beneficiaries who became eligible for Medicare on or after January 1, 2020.
2. Plans F and G also offer a high deductible plan which has an annual deductible of $2,700 in 2023. Once the annual deductible is met, the plan pays 100% of covered services for the rest of the year. The high deductible Plan F is not available to new beneficiaries who became eligible for Medicare on or after January 1, 2020.
3. Plan K has an out-of-pocket yearly limit of $6,940 in 2023. Plan L has an out-of-pocket yearly limit of $3,470 in 2023.
4. Plan N pays 100% of the Part B coinsurance, except for a copayment of up to $20 for some office visits and up to $50 for emergency room visits that don’t result in an inpatient admission.
View an image version of this table.
All Alabama Medigap plans (A-D, F, G, K-N) cover some or all of the following:
- Part A coinsurance and hospital costs
- Part B coinsurance and copays
- First three pints of blood
- Part A hospice care coinsurance
You can find plans that cover additional expenses such as Part A and B deductibles, foreign travel, excess charges by physicians and skilled nursing facility coinsurance.
Plan F provides the most comprehensive coverage, but isn't available to those eligible for Medicare after January 1, 2020. Plan G is similar to Plan F but doesn't cover Part B deductibles. Plan N, which covers most common Medigap benefits except Part B deductibles and excess charges, is also a popular option.
Private insurance companies set the premiums they charge for Medicare Supplement Insurance in Alabama. This means that even standardized plans have different costs. Be sure to compare plans even if they're within the same letter category.
How Do I Enroll in Medigap Plans in Alabama?
Once you're 65 and enrolled in Medicare Part B, you have a personal, six-month Medigap open enrollment period. During this time, you can join any Alabama Medicare Supplemental Insurance policy that is sold where you live. Insurers can't turn down your Medigap application because of your medical condition and must sell you a plan at the same cost as a person in good health.
Medigap is only an option if you have Original Medicare — you can't join a Medigap plan if you receive coverage through a Part C Medicare Advantage Plan.
After your six-month Medigap Open Enrollment period has expired, you may be denied Medigap coverage or charged higher premiums based on your health, unless you qualify for guaranteed issue rights. In these exceptions, an insurance company must sell you a Medicare Supplement Insurance policy at the same rate as a person in good health.
Here are some of the situations in which guaranteed issue rights apply:
- You were enrolled in Medicare Advantage for less than a year, and for the first time, before deciding to return to Original Medicare.
- You move out of your Medicare Advantage plan's service area.
- Your insurer leaves Medicare.
You have an existing Medigap policy and lose coverage for a reason that's not your fault — for example, the insurance company goes bankrupt.
AHIP. (Mar. 2022). The State of Medicare Supplement Coverage: Trends in Enrollment and Demographics. https://ahiporg-production.s3.amazonaws.com/documents/202202-AHIP_MedicareSuppCvg-02_v03.pdf.