Best Medicare Supplement Plans in Vermont

Medicare Supplement plans in Vermont—also known as Medigap—help cover the “gaps” in Original Medicare by covering out-of-pocket costs like deductibles, copayments, and coinsurance. This extra coverage provides important financial protection and predictability for retirees.

These plans are especially valuable because Original Medicare has no annual out-of-pocket maximum; a serious illness could result in high medical bills without supplemental coverage. By covering most Medicare cost-sharing, Medigap plans help limit out-of-pocket exposure and make healthcare costs more predictable.

They also offer unmatched flexibility. With a Medigap plan, you can visit any doctor or hospital nationwide that accepts Medicare – no need to worry about provider networks or referrals like you would with many Medicare Advantage plans.

In short, a good Medicare Supplement plan provides peace of mind that your healthcare expenses will be manageable and that you can get care anywhere Medicare is accepted.

How Medigap Plans Work in Vermont (Standardized Benefits)

Medigap plans are standardized into lettered categories (Plans A, B, C, D, F, G, K, L, M, and N), each with a defined set of benefits set by federal law. This means that a Plan G from one insurance company has the same core benefits as a Plan G from any other company.

Because coverage is standardized, choosing a Medigap plan is largely about price, customer service, and company reputation, rather than differences in coverage.

It’s important to note that not all plans are available to new enrollees. For example, Plan F and Plan C (which covered all Medicare cost-sharing, including the Part B deductible) are no longer sold to people who became eligible for Medicare after January 1, 2020.

If you already had Plan F or C before 2020, you can keep it, but new beneficiaries must choose from other plans.

Each plan letter offers a different level of coverage. Plan A is the most basic, while Plan G is the most comprehensive option available to new beneficiaries, covering all Medicare deductibles and coinsurance except for the Part B deductible. Plans K and L are cost-sharing plans with annual out-of-pocket limits, while Plans M and N provide strong coverage but leave a few small gaps.

Key point: Because Medigap plans are standardized, once you decide on a plan letter (such as Plan G or Plan N), you can confidently compare prices among different insurers, knowing that the core benefits are the same.

The “best” plan for you will balance comprehensive coverage with an affordable premium and come from a company you trust.

The Most Popular Medigap Plans: Plan G, Plan N, and High-Deductible Plan G

Among all options, Plan G and Plan N have emerged as the top choices for new Medicare enrollees, especially after Plan F was phased out. There’s also growing interest in the High-Deductible Plan G for those looking to minimize monthly premiums.

Medigap Plan G – The Top Choice

Plan G is now the most comprehensive plan available to people new to Medicare and has become the most popular Medigap choice. It covers nearly all Medicare Part A and Part B cost-sharing, including hospital deductibles, copays, and coinsurance, as well as doctor visits and outpatient care. The only thing it doesn’t cover is Medicare’s annual Part B deductible.

Once you pay that small deductible each year, Plan G covers all your Medicare-approved costs for the rest of the year. Many people choose Plan G because it offers nearly full coverage and predictable costs, making it especially attractive for those who want to avoid unexpected medical bills. Virtually all Medigap insurers offer Plan G, so it’s widely accessible.

The trade-off for this robust coverage is a higher premium compared to some other plans.

Medigap Plan N – Lower Premium Alternative

Plan N is another popular option, covering most of Medicare’s gaps but with a few small copayments: up to $20 for office visits and $50 for emergency room visits (if not admitted). Unlike Plan G, it doesn’t cover Part B excess charges – small additional fees some providers may charge above Medicare-approved amounts – but these are rare.

Because Plan N passes along some cost-sharing to the policyholder, its premiums are typically lower than Plan G’s. Many people find Plan N appealing if they’re willing to handle occasional copays in exchange for a lower monthly premium. This plan offers excellent value and broad coverage without paying for services they may not frequently use.

High-Deductible Plan G – Low Premium, Catastrophic Protection

High-deductible Plan G offers the same benefits as standard Plan G but requires a higher annual deductible ($2,870 in 2025) before coverage kicks in.

This design results in significantly lower monthly premiums and appeals to those who prefer to keep fixed costs low and are comfortable covering routine expenses out of pocket. In a worst-case scenario, your out-of-pocket costs are capped at the deductible amount, which still provides financial protection against catastrophic events.

Although enrollment in this plan is still relatively small, it’s a compelling option for healthier individuals or those looking to minimize premiums.

Plan G vs. Plan N: Which is Better?

There’s no one-size-fits-all answer. Plan G offers more comprehensive coverage and no copays, but comes at a higher monthly cost. Plan N saves you money on premiums and covers major expenses, with the trade-off of small copays and potential excess charges.

Many new beneficiaries choose Plan G for maximum peace of mind, while Plan N is ideal for those who want lower premiums and don’t mind minor out-of-pocket costs. Both are excellent options that strike a great balance of value and protection.

Top Medicare Supplement Companies and Their Benefits in Vermont

While all Medigap plans of the same letter offer the same standardized benefits, your choice of insurance company can make a big difference in your overall experience, pricing stability, service, and additional perks. Here’s a deeper dive into some of the most reputable and widely chosen companies.

Aetna

Aetna, now part of CVS Health, has a long history of providing health insurance and brings financial strength and stability to its Medigap offerings. It operates in most states and is often praised for its easy-to-use online tools and transparent quoting process.

What makes Aetna stand out:

Strong brand trust: Aetna is a household name in health insurance. Its long-standing reputation gives many policyholders confidence that the company will be there when needed.
Broad network of support: While Medigap doesn’t use networks, Aetna’s large presence means they have well-developed claims and customer service systems.
Digital convenience: Their online quote tools are among the best. They allow consumers to see real-time pricing based on their age and location, as well as projected price increases as they age. This helps seniors plan for the long term instead of facing surprise rate jumps later.
Household discounts: Aetna typically offers up to a 7% discount when two members of the same household enroll, which can result in significant savings for couples.

Considerations:
Aetna uses an attained-age pricing model in most states, meaning premiums rise as you age. While they often start competitively, it’s important to consider how those costs could change in your 70s and 80s. Additionally, Aetna doesn’t operate in a few states, so availability might be a limiting factor depending on where you live.

Cigna

Cigna is another major insurer known for affordable base premiums and generous discounts. It serves many states and often appeals to cost-conscious shoppers looking for strong value and dependable service.

What makes Cigna stand out:

Affordability first: Cigna often offers some of the lowest initial premiums, making it attractive to those who prioritize cost savings without sacrificing essential coverage.
Robust discount programs: With a typical 7% household discount and an additional 5% for online enrollment in many areas, Cigna encourages cost-effective sign-up options. These discounts can stack, creating a significant combined savings.
24/7 customer support: Unlike many competitors, Cigna offers U.S.-based phone support around the clock. This is a unique advantage for clients who prefer to resolve questions or issues at any time of day, especially helpful for snowbirds or frequent travelers.
Option to bundle: For those who prefer a simplified experience, Cigna allows bundling of Medigap with other products such as Medicare Part D drug coverage, dental, and vision plans. This can make administration and payments easier to manage.

Considerations:
Cigna doesn’t offer every Medigap plan letter in every state, typically focusing on the most popular options (Plans G, N, and sometimes A or F for older eligibles). Additionally, Cigna’s pricing model can vary by state — some use attained age, others use community or issue age, depending on state regulations. Understanding which pricing model applies in your area is critical to anticipating future rate changes.

Mutual of Omaha

Mutual of Omaha, or MOO, is one of the most respected names in Medicare Supplement insurance and has been offering Medigap policies since Medicare was created in 1966. As a mutual company, it is owned by its policyholders rather than shareholders, often resulting in a stronger focus on customer satisfaction and stability.

What makes Mutual of Omaha stand out:

Policyholder-focused approach: As a mutual company, its priorities are aligned with its customers rather than outside investors. This often leads to a more service-oriented culture and careful attention to rate stability.
Generous discounts: One of the most competitive household discounts in the market (up to 12%) can make a big difference for married couples or household members enrolling together.
Extensive plan availability: Mutual of Omaha offers almost all standardized plan letters in most states, including high-deductible options, giving enrollees greater flexibility in selecting the best fit for their needs.
Long-term rate predictability: While premiums do rise, Mutual of Omaha is known for more moderate annual rate increases compared to some competitors, which can help with long-term budgeting.
Reputation for strong customer service: Many policyholders cite friendly, non-pushy agents and quick, straightforward claims handling. Their quoting tools are also among the easiest to use, providing immediate, transparent pricing.

Considerations:
Mutual of Omaha’s premiums aren’t always the lowest in every area, but many find that paying a few extra dollars per month is worth it for the added peace of mind. Like most carriers, they primarily use attained-age pricing, so rates will increase as you age. Some less common plans may not be offered in every state.

Humana

Humana is one of the largest and most recognized Medicare-focused insurers. It offers both Medicare Advantage and Medigap plans. Its extensive Medigap offerings and member perks make it a versatile option for many.

What makes Humana stand out:

Plan variety and availability: Humana offers a wide range of plans in nearly every state, giving consumers ample choice and accessibility.
Digital experience and transparency: Their online tools allow you to compare Medigap, Medicare Advantage, and Part D plans. You can also see “preferred” rates if you pass health underwriting or “standard” rates if you have certain conditions. This level of transparency can help you make a more informed decision.
Extra perks: One unique benefit is their inclusion of SilverSneakers, a nationwide gym membership program that can support a healthy and active lifestyle at no extra cost. They also offer optional dental and vision plans, making bundling your health needs under one roof easy.
Online enrollment discount: Humana offers a 6% discount in most states for enrolling online, making it an attractive choice for tech-savvy seniors looking to save.

Considerations:
Humana’s attained-age pricing means premiums will rise as you get older, and some areas may have more limited plan availability despite their broad national presence.

Their household discounts are often smaller than competitors like Mutual of Omaha, and customer support hours are generally limited to standard business hours rather than 24/7.

Why Your Choice of Company Matters in Vermont

While benefits are standardized, your chosen carrier affects more than just price. Your experience with customer service, how future rate increases are managed, the ease of filing claims, and any added perks can all influence your overall satisfaction and financial security in retirement.

By understanding these deeper differences, you can choose the right coverage and ensure you partner with a company that matches your expectations and lifestyle. Always compare quotes and ask about rate history, discounts, and service support before deciding.

Medigap Costs: Premiums, Pricing Methods, and Discounts

Medigap premiums vary based on plan choice, age, location, and insurer. In 2023, the national average premium across all plans was around $217 monthly, but Plan G averaged about $164 monthly. Local market factors can significantly impact these rates.

Pricing methods:

Community-rated: Same premium for everyone in an area, regardless of age.
Issue-age-rated: Based on age when first purchased; does not increase as you age.
Attained-age-rated: Increases as you get older (most common).

Most premiums will rise over time due to healthcare cost inflation, even for community-rated plans.

Discounts:

Household discounts for enrolling with a spouse or another household member
Online enrollment discounts
Non-smokers and preferred health rates in some cases

When comparing options, it’s wise to consider long-term affordability, not just the initial monthly price.

Enrollment Timing: New vs. Switching Enrollees

When first enrolling in Medicare Part B at 65 or older, you have a one-time six-month Medigap Open Enrollment Period with guaranteed issue rights – insurers cannot deny coverage or charge higher rates due to health conditions.

After that, switching plans usually requires medical underwriting, meaning you can be denied or charged more based on your health.

Some states have extra protections, like “birthday rules” (California and Oregon) or continuous open enrollment (New York and Connecticut), allowing more flexibility to change plans without underwriting.

Advice:

New enrollees should use their initial open enrollment to lock in the best coverage without underwriting.
Existing enrollees should periodically review plans and compare rates. If you’re healthy, you may be able to switch to save money, but never cancel an existing plan before a new one is approved.

Conclusion: Finding Your Best Medigap Plan

Choosing a Medicare Supplement plan is one of the most important retirement healthcare decisions you’ll make.

Plan G offers the most comprehensive protection for most people, while Plan N provides excellent value with lower premiums. High-Deductible Plan G can be a great option if you prefer ultra-low premiums and can handle higher annual costs if needed.

All the top insurers – Aetna, Cigna, Mutual of Omaha, Humana, and others – have strong reputations. The best choice depends on your budget, health needs, and comfort with potential future premium increases.

Always compare quotes, check for discounts, and consider the long-term affordability. If possible, work with an experienced Medicare broker who can help navigate the options specific to your state and needs.

With careful planning and comparison, you can choose a Medigap plan that gives you peace of mind and helps protect your finances throughout retirement.

Common Medicare Supplement FAQ’s

When can I change Medigap plans?

Once you choose a Medicare Supplement insurance plan in Vermont, you’re locked in unless you meet the special enrollment criteria. Vermont Medicare beneficiaries who want to change plans are subject to underwriting and could be denied coverage. Our agents can help you determine if you qualify for special enrollment.

Can I be denied coverage?

If you apply for a Medigap policy during open enrollment or qualify for a special guaranteed-issue situation, the Medicare insurance company cannot deny coverage. If you apply outside these windows, you’re subject to underwriting, and the insurer might deny coverage.

Do Medigap plans cover foreign travel?

Medigap plans A, B, C, D, F, G, M, and N cover foreign travel emergencies up to plan limits.