Medicare Supplement

How Medicare Supplement plan letters function in Hoover

HOOVER, Ala. — If you're new to Medicare, or helping a parent sort through the paperwork, you've probably heard the word "Medigap." It sounds technical, but the idea is simple: Medigap is a private insurance policy that helps pay some of the out-of-pocket costs Original Medicare leaves behind — things like coinsurance, copays, and hospital deductibles.

Medicare Supplement insurance, explained: what Medigap does and doesn't cover

Here in Hoover, which sits in Jefferson County, retirees have plenty of options to consider. But before you compare policies, it helps to understand what Medigap actually is, what it isn't, and how those standardized "letter" plans work.

What Medigap does

Medigap works alongside Original Medicare (Part A and Part B). When you get care, Medicare pays its share first, and your Medigap policy pays some or all of what's left, depending on the plan you chose.

That can include:

• The Part A hospital deductible and coinsurance
• Part B coinsurance (usually 20% of the Medicare-approved amount)
• Some costs for extended hospital stays
• Limited coverage for emergency care during foreign travel (with certain plans)

Medigap policies are sold by private insurance companies, but the benefits inside each lettered plan are set by federal and state rules — not by the carrier.

What Medigap does not do

This is where a lot of confusion starts. Medigap is not the same thing as a Medicare Advantage plan, and it doesn't replace Medicare. A few important limits:

• Medigap does not include prescription drug coverage. For that, you'd need a separate Part D drug plan.
• It doesn't cover dental, vision, hearing aids, or long-term custodial care.
• You cannot have both Medigap and a Medicare Advantage plan at the same time. Medigap is designed to work only with Original Medicare.

How the standardized letters work

Medigap plans are labeled by letters — A, B, C, D, F, G, K, L, M, and N. (Plans C and F are only available if you were eligible for Medicare before January 1, 2020.)

The key thing to know: a Plan G from one company covers the same core benefits as a Plan G from another company. The federal government standardizes what each letter plan must include. What can differ is the premium, the customer service, and small extras.

That means if you're comparing two Plan Gs sold to Hoover residents, you're really comparing price and company reputation — not benefits.

Massachusetts, Minnesota, and Wisconsin standardize their Medigap plans differently, but Alabama follows the standard federal letter system.

When to enroll

Timing matters more with Medigap than almost any other Medicare decision.

Your Medigap Open Enrollment Period is a one-time, six-month window that starts the month you turn 65 and are enrolled in Part B. During this window, insurance companies must sell you any Medigap policy they offer at their best available rate, regardless of your health history.

Miss that window, and in most states — Alabama included — insurers can use medical underwriting. That means they can charge you more, or turn you down, based on pre-existing conditions.

How Medigap fits with Part D and 2026 changes

Because Medigap doesn't cover prescriptions, most people pair it with a stand-alone Part D drug plan. There's real news on that front for 2026:

• The Part D out-of-pocket cap is $2,100 for 2026, according to CMS.
• The maximum Part D deductible is $615.
• The old coverage gap, or "donut hole," was eliminated in 2025 — Part D now has three simpler phases.
• The Medicare Prescription Payment Plan lets you spread your drug costs across the year in monthly installments, instead of paying big bills at the pharmacy counter.
• IRMAA surcharges — the extra amounts higher earners pay for Part B and Part D — begin above $109,000 in income for a single filer in 2026.

None of those numbers change what Medigap covers, but they matter if you're building the whole picture of your Medicare costs.

Local snapshot: Hoover and Jefferson County

Medicare plan availability is set at the county level. Hoover is in Jefferson County, where Medicare beneficiaries can choose from a range of stand-alone Part D drug plans and multiple Medigap carriers licensed in Alabama. Medigap availability isn't as tightly county-limited as Medicare Advantage, but premiums for the same lettered plan can vary quite a bit between companies, so it pays to compare.