What Is Medigap Plan B?
Key Takeaways
- Medigap Plan B is a basic Medicare Supplement Insurance option that covers copays, coinsurance, and the Medicare Part A deductible, offering slightly more coverage than Plan A.
- Plan B covers hospital costs, Part A deductibles, copays, and coinsurance for Parts A and B. It also covers the first three pints of blood for transfusions and hospice care.
- To select the right Medigap plan, evaluate your healthcare needs, compare available options in your state, and consider costs.
- Enrolling during your initial enrollment period ensures the most options and avoids higher premiums tied to health status.
Medigap Plan B is one of the most basic Medigap plans available. However, after using your Original Medicare benefits, it offers slightly more coverage than Plan A by covering 100% of the Medicare Part A deductible, coinsurance, and copayments owed.
Learn how Medigap works with Original Medicare to help lower your out-of-pocket costs and whether Medicare Supplement Plan B is your best option.
Medigap At a Glance
Medicare Supplement Insurance, commonly called Medigap, helps pay for the out-of-pocket expenses of Medicare Parts A and B, which comprise Original Medicare. Original Medicare beneficiaries can purchase supplementary Medigap plans from private insurers to reduce costs associated with copays, coinsurance, and deductibles.
KFF reports that around 42% of Medicare beneficiaries also have a Medigap plan. These plans are standardized, meaning all plans with the same letter name offer the same coverage. Most states offer 10 Medigap plan types: Plans A, B, C, D, F, G, K, L, M, and N. Of these, Medicare Supplement Plan B is one of the most basic, which can help lower out-of-pocket costs for those who may not need extensive health services.
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Understanding Medigap Plan B
Medigap Plan B is different from Medicare Part B, though the names sound similar. Medigap supplements Original Medicare to mitigate out-of-pocket expenses. Like all Medigap plans, Plan B covers copays, coinsurance, and one additional benefit: the Part A deductible.
Key Features of Medigap Plan B
- Core coverage: Medigap Plan B offers coverage for coinsurance and copays for Medicare Parts A and B.
- Slightly more coverage than Plan A: While Medigap Plan A is the most basic plan, Plan B offers slightly more coverage through paying for the Part A deductible.
- Blood coverage: Medigap Plan B covers the first three pints of blood needed for a transfusion
What Does Medigap Plan B Cover?
Like all Medigap policies, Plan B does not supplement Original Medicare with additional benefits but rather by covering some out-of-pocket expenses associated with deductibles, copays, and coinsurance. You can use Medigap Plan B to pay for the following.
- Coinsurance and hospital costs from from Medicare Part A
- Copays and coinsurance from Medicare Part B
- The first three pints of blood in a transfusion
- Hospice care
- The Part A deductible ($1,676 in 2025)
Costs For Medigap Plan B
Monthly Plan B premiums vary among insurance providers, but the coverage offerings are standardized. Typical costs associated with Medicare Supplement Plan B include the following.
- Premiums: A premium is the monthly fee paid to keep your Medigap plan active. Insurers price Plan B premiums based on where you live and depending on when you purchase your plan, premiums may also be affected by your age and health status. You’ll pay your Plan B premium in addition to any Original Medicare premiums.
- Deductibles: A deductible is the amount you must pay in covered costs before Original Medicare begins helping with expenses. Medigap Plan B covers the deductible for Medicare Part A, but not the Part B deductible.
- Copays: Plan B pays for any copays — set amounts charged for medical services — you’ll owe after using Original Medicare.
- Coinsurance: Some benefits charge coinsurance instead of copays. Instead of a set amount, coinsurance is calculated based on a set percentage of your total bill. For example, the typical coinsurance for using Part B services is for Medicare to cover 80% of the total cost while you cover the remaining 20%. Medigap Plan B covers your portion of the coinsurance from Parts A and B.
See It In Action
To get a better idea of how Medigap Plan B may work, consider the following: John is having his gallbladder removed in a scheduled surgery and is using his Medicare and Medigap Plan B policies to pay for it. Due to slight complications from surgery, John spends one night in the hospital but is able to go home the following day. His recovery is otherwise smooth. Let’s analyze John’s out-of-pocket (OOP) treatment expenses:| Treatment | Initial cost | Medicare coverage | Medigap Plan B coverage added |
|---|---|---|---|
| Gallbladder surgery | $9,000 | 100% after $1,676 Part A deductible (OOP reduced to $1,676) | 100% of Part A deductible (OOP reduced to $0) |
| One-night hospital stay | $3,000 | 100% with Part A deductible met (OOP reduced to $0) | N/A |
| Total out-of-pocket cost | $12,000 initial cost | $1,676 with Medicare only | $0 with Medigap Plan B |
How Medigap Plan B Compares With Other Basic Medigap Plans
| Benefits | Plan B | Plan A | Plan K |
|---|---|---|---|
| Available to those who became eligible for Medicare in or after 2020? | Yes | Yes | Yes |
| Part A coinsurance and hospital costs for up to 365 additional days after Medicare benefits are disbursed | Yes | Yes | Yes |
| Part B coinsurance or copayment | Yes | Yes | 50% |
| Part A hospice care coinsurance or copayment | Yes | Yes | 50% |
| Part A deductible | Yes | Not covered | 50% |
| Part B deductible | Not covered | Not covered | Not covered |
| Part B excess charge | Not covered | Not covered | Not covered |
| Out-of-pocket limit | N/A | N/A | $7,220 in 2025 |
| Blood (first three pints) | Yes | Yes | 50% |
| Skilled nursing facility care coinsurance | Not covered | Not covered | 50% |
| Foreign travel exchange up to plan limits | Not covered | Not covered | Not covered |
How to Choose a Medigap Plan
In most states, you can choose from 10 types of Medigap plans, each labeled with a different letter: A, B, C, D, F, G, K, L, M, and N. Every Medicare Supplement Plan covers some out-of-pocket expenses after using your Medicare benefits, but different lettered plans provide different coverages. Consider the following to pick the best Medicare Supplement Plan that would suit your budget and needs.
- Evaluate your healthcare needs. Consider how often you expect to seek care, including whether you anticipate needing surgery or inpatient treatment to address any known conditions. This will give you an idea of your upcoming medical expenses and how much coverage you may need.
- Look over your Medigap plan options. See which plans are available in your state and compare their coverage offerings to see which letter would serve you best. Pay attention to how each plan type covers coinsurance and copays, deductibles, foreign travel emergencies, excess expenses, and inpatient costs.
- Calculate potential costs. Once you have an idea of your ideal Medigap plan, take a look at its potential cost. Factor in your potential healthcare usage along with the plan’s coverages to see which plans best suit your budget.
- Pick a carrier and plan. See which private insurance companies offer your chosen Medicare Supplement Plan in your area. Read reviews, chat with trusted licensed agents or brokers, and get a feel for each company’s reputation to choose the best plan for you.
- Enroll. Once you’ve settled on a plan, it’s time to enroll. If you can, do so when you first enroll in Medicare, during your initial enrollment period (IEP). The IEP starts three months before you turn 65 and continues for three months after your birthday month ends. If you purchase Medigap after your IEP, enrolling may become more complicated; your health status can affect your plan options and premium prices.
Putting It All Together
Original Medicare has deductibles, copays, and coinsurance as part of its cost sharing with beneficiaries. Medicare Supplement Insurance can help cover your portion of that cost sharing, which can lower your overall health costs. Medigap Plan B in particular covers your Medicare Part A deductible, plus any copays and coinsurance owed after using your benefits from Parts A and B. To learn more about whether Medigap Plan B is right for you, consider working with a licensed insurance agent or broker to discuss your health needs, budget, and options.
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