If Medicare Supplement (Medigap) plans are better for long-term coverage, why don't more people choose them?

Question

Tony Capraro III · Accepted Answer

This answer is provided in a video format. Watch the agent's video response here: https://medicareagentshub.com/questions/if-medicare-supplement-plans-are-better-for-long-term-coverage-why-dont-more-people-choose-them#tony-capraro

Steve and Sue Brauer · Answer

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Lt Col Tim Brown · Answer

I think it's because premiums go up every year and become pricy.  To get another med sup at a lower rate, one has to qualify for that and sometimes they cannot. It doesn't come with dental, vision and hearing nor a prescription drug card.  You have Medicare Part B premiums on top of that and it's gotten higher over the years.  I remember when Part B was $99.00.  
Hope that helps.  Tim Brown, please contact me.

Norman Smith · Answer

Advertising often misleads people to assume they know things they don't. The privatized companies that offer MA plans televise 9500 commercials per day! Have you seen many, if any, commercials regarding supplement plans? So many people don't have the information about them and the difference they make. In today's world, many seniors fear that they will be "Taken for a ride", so trusting a company or an agent is difficult. 
MA companies make it seem so easy! They lay out the positives, but don't show what is missing from the policies, such as the choice of practitioners, specialists, or travel benefits. It doesn't show that the highest quality choices very often do not accept the MA product. It doesn't show what Out-of-Pocket costs are if you do not choose a Network Provider. It doesn't clarify that in giving your Original Medicare back for the MA plan that you lose coverage for your Durable Medical Equipment needs. Those plans need to be changed every year, and the policy you have today may not be in place next year, or your Doctor may not even participate in that plan any longer. You rarely have that issue with Medigap plans. 
And we cannot leave out that the premiums for the Medigap plans may be out of reach for some. Unfortunately, some find out too late that they chose "Easy" instead of "Thorough", and what they saved in premiums cost them hugely later on when they needed more quality coverage.

Andrew Zurbuch, MBA · Answer

Generally the premiums. Medicare Beneficiaries weigh the premiums for Medicare Supplement Insurance versus Medicare Advantage. An increasing percentage are choosing enrollment in Medicare Advantage.

Plans are insured or covered by a Medicare Advantage (HMO, PPO and PFFS) organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment in the plan depends on the plan’s contract renewal with Medicare. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

Clarence &quot;Mark&quot; Christiansen · Answer

Medicare supplement plans are generally much lower cost for people age 65 - to - 70 but after that, things change. I have customers who started paying $ 125 monthly for their supplements but their plans closed for new business and increased premiums on current grandfathered members to $ 500 monthly (and higher).

Answered by Clarence "Mark" Christiansen on April 4, 2025

Agent Licensed in WI, AZ, CA & 16 other states

Answered by Clarence "Mark" Christiansen Medicare Insurance Agent

Esther Miller · Answer

Medicare Suppliments are good in that they are able to provide additional coverage for Medicare Part A hospital coverage and Medicare Part B doctor coverage to minimize out of pocket expenses to just $257.00 for the Part B deductible. But they do so at a price, as policies for a G plan average between $240 to $260 per month. This is in addition to paying for the Medicare Part B monthly premiums of $185.00 per month, a monthly fee for a Part D prescription drug plan and an average cost of $60 to $75 per month for a dental plan. These monthly costs do add up and can put these kind of plans out of reach for those with fixed budgets. Advantage plans on the other hand, can start as low as zero premium, vision, dental coverage for a lower monthly fee. The trade off? You may have to pay more out of pocket for a big health event, as max out-of-pocket costs can be up to $6000 or more annually.

Answered by Esther Miller on August 25, 2025

Agent Licensed in WA

Answered by Esther Miller Medicare Insurance Agent

Alicia Hoilman · Answer

Medicare plans are not a one size fits all meaning Medigap plans aren't always the best option for everyone. It depends on many factors. Monthly Cost is typically the reason many people won't choose a Medicare Supplement or end up switching to a Medicare Advantage.

Answered by Alicia Hoilman on June 11, 2025

Broker Licensed in VA, DE, FL & MD

Answered by Alicia Hoilman Medicare Insurance Agent

Jeffrey Jon · Answer

It is a choice. Some may want the security of the Medicare Supplement over the possible lower cost of the MAPD. The MAPD has no underwriting, whereas the MS plans do. If you have health issues that prevent you from lowering your monthly premiums, then you can choose the alternative of the MAPD plans.

Answered by Jeffrey Jon on July 7, 2025

Agent Licensed in TX

Answered by Jeffrey Jon Medicare Insurance Agent

Steven Bleicher · Answer

Affordability is the number one concern. Due to our global economy, these factors are the key. Since we currently live in a state of flux, folks are dismissing our future & prefer to put off the inevitable. One of the main statistics that I have been aware of for years is that 2 out of every 3 seniors will experience a visit to a long-term care facility in their lifetime. This is not a cheap out of pocket cost! Another common problem is that folks believe that they are in great health. But what about being in a car accident? With that situation, your health is no longer good & now you are greatly impacted.

Answered by Steven Bleicher on June 7, 2025

Broker Licensed in AZ

Answered by Steven Bleicher Medicare Insurance Agent

Michael Pyers · Answer

They only look at Dollar signs and not the big picture. Also, Medicare Advantage salespeople are more interested in the fact that most Advantage plans pay a lot more commission than Medigap plans. So- not always in the best interest of the consumer, but in the best interest of the salesperson.

Answered by Michael Pyers on July 9, 2025

Broker Licensed in OH & MI

Answered by Michael Pyers Medicare Insurance Agent

Sharon Bohlen · Answer

Medicare plans are not a "one size fits all" and people who choose Medicare Advantage plans do so for the bundled services (prescriptions, dental, vision, hearing) and little to no monthly premiums. People who choose Medicare Supplement plans are willing to pay monthly premiums for the freedom to see any doctor who takes Medicare without verifying networks. They are willing to purchase stand-alone plans for dental and vision. It comes down to personal preference; people on both types of plans get the care they need.

Answered by Sharon Bohlen on August 21, 2025

Broker Licensed in OH, FL, IN & KY

Answered by Sharon Bohlen Medicare Insurance Agent

Sandra Kerley · Answer

I feel like this answer can be best answered by why people choose them and why they don't.

Some reasons people choose Medicare Supplement:

They can afford the monthly premium - as they tend to be higher than the advantage plans and can afford the annual raise in cost.
There are no networks.
Prior authorizations are not required for services.
Referrals are not required for specialists.


Some reasons people choose Medicare Advantage over Medicare supplement:
Monthly premiums can be as low as $0. 
They can include other coverages such as dental, vision, hearing and more.

Medicare Advantage Plans have a maximum out of pocket cost.

Nancy Courser · Answer

Many people are enticed by the low premiums for the Advantage plan and additional benefits like fitness, dental, vision, over-the-counter, etc. They view their health in today's terms not in future terms when potentially health changes occur. So, it's about the cost and coverage. People also think that they can enroll in a Medigap down the road but find out that guarantee issue rights are not available and cannot medically qualify. They forget that after the initial enrollment, the insurance company requires the applications to go through medical underwriting. Not everyone qualifies and pre-existing do count in the overall evaluation.

Answered by Nancy Courser on May 23, 2025

Agent Licensed in MI & FL

Answered by Nancy Courser Medicare Insurance Agent

Shalonda Cave · Answer

These plans come with premiums in addition to Original Medicare’s Part B premium, which may not be the best financial option for all clients.

Gary Henderson · Answer

Medigap   are the majority of plan selections. However, insurance companies spend more advertising dollars on medicare advantage plans, because the insurance company makes more profit from those. Also, low income people like the zero dollar monthly premium, but pay 5-10K per year, in max out of pocket should they become seriously ill.
Medigap is the better choice.  I recommend Plan N for the majority of people. Most cost effective medigap plan.

Mike Henry · Answer

Mainly cost. Most advantage plans have little or no cost.  Also no or low cost drug and Dr coverage.

Marcie Barnes · Answer

The coverage a beneficiary choses is a personal choice.  Medsup plans have a cost that some people can't afford.  Medicare Advantage plans offer more comprehensive coverage including dental, vision, hearing etc.

Medsups are like having car insurance.  You pay a monthly premium and hope you don't need it.  Medicare Advantage is more like pay as you need it.

Glenn Alterman · Answer

Some don’t chose them because they don’t want to pay for them and like the MAPD plans with no premium or very small premiums

Kelly Linster · Answer

Better is a very subjective term. I find when a client is educated on both Advantage plans & Supplement plans. They choose what fits their needs the best from the very start of Medicare.

Ronnie Robinson · Answer

When you say long-term coverage, are you referring to long-term care? Medicare Supplement plans can be expensive the older you get.

Kevin Chaikin · Answer

It's not universally the better option but in summary it usually comes down to cost.  If you are short sighted about finances, you may focus on the monthly premium instead of the financial exposure.

Lakisha Bryant · Answer

Medigap plans have a premium that increases every year on the policy anniversary date. There are deductibles to meet as well as a prescription premium and prescription co-pays. It depends on if you can afford the medigap plan. Everyone's situation is different.

Answered by Lakisha Bryant on August 3, 2025

Broker Licensed in LA & TX

Answered by Lakisha Bryant Medicare Insurance Agent

Chris Prang · Answer

First, one has to define “better”. What is “better”?
•	No networks.
•	Less prior authorizations.
•	More financial protection if something serious happens.
•	Standardized...A Plan G is a Plan G no matter where you live. They don’t change from year-to-year.

After that, the main reasons why more people don’t choose them are as follows:

1.	The 800# TV ads from the corrupt, publicly traded e-brokers. The ads and agents that represent these companies do not give full disclosure about ALL the options and pros and cons of each option that a Medicare beneficiary has. Unfortunately many people that have enrolled into Medicare Advantage over the last 5 years or so have little to no clue what they have and the pros and cons that go along with it.

2.	Almost 20% of Medicare beneficiaries also receive Medicaid, therefore they have no need for a Medicare Supplement.

3.	Many people can’t afford the escalating premiums. For those that can’t, they need to seriously consider a High-Deductible Plan G. It is “The Best Alternative To Medicare Advantage.” 

4.	Then you have a large percentage of Medicare beneficiaries that have group retiree coverage in place of or in addition to their regular Medicare. These would include those who have retired from federal, state, and local government, as well as those in the military that have Tricare for Life.

5.	Lastly, there are people that have truly weighed their options and prefer Medicare Advantage over a Medicare Supplement because of the $0 to low premiums and the extra benefits (dental, vision, etc.). And they are willing to deal with copays, networks, and annual changes. From my experience and research, the vast majority of people that have a Medicare Advantage plan are satisfied to very satisfied with their plans.

So, “better" depends on each Medicare beneficiary's specific needs, philosophy, and budget.

I hope that helps.

Regards,

Chris

Maci Mishler · Answer

Medicare Supplements have a premium and some people can't afford them. Those premiums will also go up over time so they need to understand they're paying for their coverage. A lot of people who are new to Medicare may not use their coverage enough to see the benefit to the larger premium, but they need to understand that statistically, they will eventually use that coverage and the premium will be worth it!

Answered by Maci Mishler on June 9, 2025

Broker Licensed in NE, AR, KS & MO, ND, OK & TX

Answered by Maci Mishler Medicare Insurance Agent

Johnnie Jeter · Answer

Because people have a choice to choose whatever plan best fits their needs and whatever plan they want to be on.

Britania James · Answer

Less people choose Medigap plans because they:
1. Have a monthly premium
2. Do not cover dental, vision, hearing, or prescription drug coverage

Kim Fisher · Answer

Usually people that don’t choose Supplements is because they have a monthly premium and you have have to buy drug plan and vision dental separately. Where with a Medicare Advantage there are usually no premiums and other things are included.

Answered by Kim Fisher on August 18, 2025

Agent Licensed in SC

Answered by Kim Fisher Medicare Insurance Agent

Kristen Maurice · Answer

Medicare plans are not "one size fits all". People choose other options for many different reasons. The most common reason I find is budget. Also, some people like the all-in-one convenience that a Medicare Advantage plan provides. There are advantages to both options, and that is why it is essential to learn about each plan so that you can decide what is best for you.

Answered by Kristen Maurice on July 7, 2025

Agent Licensed in TN, AL, CA & 10 other states

Answered by Kristen Maurice Medicare Insurance Agent

If Medicare Supplement (Medigap) plans are better for long-term coverage, why don't more people choose them?

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