When you are choosing a Medigap plan, you are probably looking for the right middle ground between your monthly premiums and out-of-pocket protection. Below, this Medicare Supplement agency in Kouts, Indiana is going to highlight some of the key factors you’ll want to consider before choosing a plan.

Learn about the two cost components of Medigap.

When you look at different Medigap plans, you need to understand that there are two main things you are paying for. You are paying for the monthly premium and out‑of‑pocket protection provided by the plan or the amount of your medical bills the plan will cover when you use it.

Let’s start with monthly premiums.

All Medigap plans that share the same letter (like Plan G, Plan N, Plan K, and so on) must provide the same coverage, no matter which company is selling it. So, Plan G is always Plan G. Even though the benefits are the same, insurance companies can still set their prices, which means some might charge more than others for the same coverage.

Most insurance companies choose from three common methods to set the prices for your monthly premium.

In the first method, called the “attained age” model, the price you pay is based on your current age. So, as you age, your monthly payment usually goes up too.

The second method is called “issue-age” pricing. With this one, your premium is based on your age when you first signed up. That price will not go up just because you are getting older, though it might increase if there is inflation or if you move or smoke.

The third method is called “community rated.” With this one, everyone in your area pays the same premium. Prices might still go up over time, but that is usually because of inflation or changes that affect everyone.

As for out‑of‑pocket protection, Medigap plans cover the costs that Original Medicare does not pay for. That includes coinsurance, deductibles, and excess charges for covered services. Some plans, like Plan K and Plan L, put a cap on how much you will ever have to pay out-of-pocket each year. For 2025, the out‑of‑pocket maximums for Plan K and Plan L are $7,220 and $3,610, respectively.

Other plans, like Plan G, go even further with coverage. They pay for just about everything except the small Part B deductible, which is $257 in 2025. These plans usually have higher monthly premiums, but they also give you predictable annual costs and minimal cost‑sharing.

If you are still not confident, an experienced Medicare Supplement agency in Kouts, Indiana can help you figure it all out.

Should you focus on lower premiums or better protection?

When you are choosing between a lower monthly premium and stronger out‑of‑pocket protection, think about both your current health and how comfortable you are with risk.

If you are relatively healthy, don’t go to the doctor often, and like knowing exactly what you will spend each month, then a plan with a lower premium might seem like the better choice. It keeps your monthly costs low.

On the other hand, if you have a chronic condition, see doctors regularly, or prefer to know your yearly costs are mostly covered, then a plan with stronger out-of-pocket protection might make more sense. Even though the premium is higher, it gives you more predictability and support when it comes to medical bills.

So, the choice between saving money each month or getting more coverage when you need care comes down to what is more important to you. Do you prefer to keep your monthly bills low or avoid surprise costs later?

If you are still not sure what to choose, a Medicare Supplement agency in Kouts, Indiana can walk you through your options. They can help you think through your personal health needs and how much financial risk you are comfortable with.

Looking for a Medicare Supplement Agency in Kouts, Indiana?

If you are unsure about how to choose between lower premiums and stronger out-of-pocket protection, now is the time to reach out to a Medicare Supplement agency in Kouts, Indiana — like Senior Care Insurance Services. Our agents can evaluate your needs and help you find a plan that aligns with them. Contact us today to schedule an appointment with our agents.