One of the main benefits of Medigap is that it provides people on Medicare predictable expenses, because people pay monthly premiums to avoid unpredictable expenses if they get sick, said Tricia Neuman, Executive Director for KFF's Program on Medicare Policy.
The other option a newly-eligible senior can choose is Medicare Advantage. This plan, sold by a private insurance company, streamlines the upfront costs, making a separate Medigap plan unnecessary.
Insurance companies often heavily market their Medicare Advantage plans, and offer extra benefits like dental and vision insurance. Because of the initial appeal of Medicare Advantage plans, over half of people eligible for Medicare opted for a Medicare Advantage plan in 2023.
The limited nature of the Advantage plans, Neuman added, means seniors might not be able to go to the specialists they want. Sometimes seniors decide they'd rather have the flexibility and choice of providers available under traditional Medicare, and try to switch back.
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