Medicare Supplement

Medigap Plan Letters Explained for Montgomery Retirees

MONTGOMERY, Ala. — If you have watched a friend shop for Medicare Supplement Insurance — often called Medigap — you have probably heard letters like Plan G or Plan N tossed around. Those letters are not marketing labels. They are a standardized system set by federal law, and understanding them can make the whole decision less stressful.

Making sense of Medigap's alphabet

Medigap is sold by private insurance companies, but the benefits inside each lettered plan are the same no matter which company sells it. That is the key idea to hold onto as you read.

What Medigap actually does

Original Medicare — Part A (hospital) and Part B (doctor and outpatient) — pays a big share of your covered care, but not all of it. You are still responsible for deductibles, coinsurance, and copays, and there is no yearly out-of-pocket limit built into Original Medicare itself.

A Medigap policy is designed to fill some of those gaps. Depending on which lettered plan you choose, it can help pay costs like:

• The Part A hospital deductible and coinsurance
• Part B coinsurance or copayments
• The first three pints of blood
• Skilled nursing facility coinsurance
• Some foreign travel emergency care (on certain plans)

Medigap works alongside Original Medicare. It does not work with Medicare Advantage — you generally cannot have both at the same time. Medigap also does not include prescription drug coverage, so most people pair it with a stand-alone Part D drug plan.

How the standardized letters work

Here is the part that trips people up. In most states, including Alabama, Medigap plans come in ten standardized versions labeled A, B, C, D, F, G, K, L, M, and N. (Plans E, H, I, and J are no longer sold to new customers.) Plans C and F are only available if you became eligible for Medicare before January 1, 2020.

Because the federal government sets what each letter covers, Plan G from one company covers exactly the same medical benefits as Plan G from another company. What can differ:

• The monthly premium
• The company's customer service and billing practices
• Whether extra perks (like a fitness benefit) are included
• Pricing method — community-rated, issue-age-rated, or attained-age-rated

That is why comparing Medigap is really about comparing price and company reputation for the same letter, not comparing benefit packages.

Why timing matters so much

The best window to buy a Medigap policy is your six-month Medigap Open Enrollment Period. It starts the month you are 65 or older and enrolled in Part B. During that window, you have a "guaranteed issue right" — a company cannot turn you down or charge you more because of health problems.

Outside that window, in most states, insurers can use medical underwriting. That means a health condition could raise your price or block you from switching. Alabama follows the federal rules here, so Montgomery residents should pay close attention to that six-month clock.

A Montgomery snapshot

Montgomery is in Montgomery County, where Medicare-eligible residents can choose between staying on Original Medicare (often paired with a Medigap policy and a Part D drug plan) or enrolling in a Medicare Advantage plan. Availability of Medigap carriers is regulated at the state level by the Alabama Department of Insurance, and multiple carriers file plans for sale statewide.

For personalized help comparing carriers in the Montgomery area, the Alabama SHIP (State Health Insurance Assistance Program) offers free, unbiased counseling.

A few other 2026 numbers worth knowing

Even though these figures are not part of Medigap itself, they shape the bigger picture for anyone weighing coverage in 2026:

• Part D prescription drug plans now have a $2,100 yearly out-of-pocket cap.
• The maximum Part D deductible is $615.
• The old "donut hole" coverage gap was eliminated in 2025; Part D now has three phases.
• The Medicare Prescription Payment Plan lets you spread drug costs across the year in monthly installments.
• IRMAA surcharges on Part B and Part D premiums begin above $109,000 in income for a single filer.
• Annual Enrollment runs October 15 – December 7, and Medicare Advantage Open Enrollment runs January 1 – March 31.