If you're enrolled in Original Medicare, you might assume you’re covered for everything. Unfortunately, that's not the case—and not having a Medigap (Medicare Supplement) plan could leave you exposed to thousands of dollars in unexpected medical expenses.
Let’s dive into why skipping Medigap coverage may cost you far more than you think.
What Is a Medigap Plan and Why Does It Matter?
Medigap, also known as Medicare Supplement Insurance, is a private insurance plan that helps cover the “gaps” in Original Medicare—like co-payments, deductibles, and coinsurance.
You can learn more about the basics by reading this guide on what’s Medicare Supplement Insurance (Medigap) and how it works.
The Misconception: “Medicare Covers Everything”
This is where many beneficiaries get tripped up.
Original Medicare (Parts A & B) covers about 80% of approved medical expenses. That leaves YOU responsible for the remaining 20%. If you’re hospitalized or face a serious illness, those out-of-pocket costs can stack up quickly.
Breaking Down the Hidden Costs Without Medigap
1. Hospital Deductibles and Daily Copays
If you’re hospitalized for over 60 days, Medicare starts charging daily coinsurance fees. The longer your stay, the more you owe.
2. Skilled Nursing Facility Care
After just 20 days in a skilled nursing facility, you're on the hook for daily charges unless you have supplemental coverage.
3. Medical Equipment and Outpatient Services
Things like walkers, oxygen supplies, or diagnostic testing aren't always cheap. Without Medigap, you'll pay a portion or all of those expenses.
Real-World Example: The Price of Going Without
Let’s say you have surgery and need hospitalization:
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Medicare Part A deductible: $1,600 (2025 est.)
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Part B deductible: $240
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20% of a $10,000 surgery: $2,000
That’s nearly $4,000 in out-of-pocket costs—and that’s just one event.
With a Medigap plan, many or all of these costs are covered. Explore Medicare Supplement plans available to reduce these out-of-pocket burdens.
What About Medicare Advantage? Is It a Better Option?
It depends on your healthcare needs and budget. Medicare Advantage plans often have lower premiums but higher cost-sharing and network restrictions.
Medigap plans offer more freedom and predictable costs. To help weigh your options, check out this comprehensive comparison of Medicare Advantage vs. Medigap.
The Risk of Surprise Medical Bills
Emergencies don’t wait until you're financially ready. Whether it's an ambulance ride, emergency room visit, or specialized treatment, out-of-pocket costs without Medigap can derail your financial stability—especially if you're on a fixed income.
What Happens If Your Plan Gets Discontinued?
If your current Medigap plan is discontinued, don’t panic. You still have options, including special enrollment periods or switching to a new provider.
Read more about what to do if your Medicare Supplement plan is discontinued to stay protected and avoid gaps in coverage.
Who Benefits the Most from a Medigap Plan?
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Seniors with chronic conditions
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Frequent travelers within the U.S.
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Those who want predictable healthcare costs
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People on fixed or retirement incomes
How Much Can Medigap Save You Annually?
While Medigap premiums vary, the average plan can save you hundreds to thousands of dollars each year in deductibles, copays, and other out-of-pocket costs.
Choosing the Right Medigap Plan: Tips for Beginners
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Compare Plans A through N. Each offers different levels of coverage.
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Check insurer ratings. Customer service and reliability matter.
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Understand what’s not covered. Like dental, vision, or long-term care.
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Sign up at the right time. Your best bet is during your Medigap Open Enrollment period.
Avoid Financial Surprises—Choose Smart Healthcare Coverage
Skipping Medigap might seem like a money-saver now, but it's often a gamble. When medical issues arise—and they likely will—the hidden costs of not having a Medigap plan can take a major toll on your budget and peace of mind.