The fastest-growing age group in Alabama in the last decade was adults aged 65 and above. With this ever-growing population, Alabama is now home to more than 1.8 million senior adults aged 50 and above.
Since 18% of the total population is aged 65, Medicare has become a crucial need for senior adults to manage their healthcare bills. Over a million people in Alabama are enrolled in Medicare plans. This 21.22% of the total population leverages Medicare plans to lower their out-of-pocket costs associated with healthcare expenses.
In Alabama, residents can enroll themselves in various Medicare plans. The federal government administers the standard Medicare plan. In contrast, private health insurance companies provide Medicare Advantage and Medicare Supplement plans.
Medicare Supplement Plan, also called Medigap, is an optional plan that covers what’s not covered under Medicare Parts A and B. This plan provides additional health insurance for out-of-pocket expenses. Let us look into Medigap Supplement plans and what they offer to beneficiaries in Alabama.
Medicare Supplement Plans in Alabama
The Medicare Supplement Plan, called Medigap, is a secondary coverage plan with the primary purpose of lowering out-of-pocket costs such as deductibles, copayments, and coinsurance associated with Medicare plans.
These costs aren’t covered by Original Medicare Parts A and B. This means that Medigap only covers what isn’t covered by Original Medicare. Thus, you must have an Original Medicare plan with supplemental Medicare, as it is not a stand-alone insurance policy.
More than 36% of Alabama residents are enrolled in Medigap plans as of 2024. Alabama’s average life expectancy is just under 74, which makes senior healthcare programs necessary in the State to provide older adults with comprehensive healthcare coverage.
About 10 private health insurance providers in Alabama offer Medicare Supplement plans to residents. These Medigap plans cover out-of-pocket expenses, including copayments, coinsurance, and deductibles.
- Deductibles are costs that you cover before Medicare provides coverage for health services. Thus, deductibles apply to all Medicare Parts.
- A copayment is like a fixed payment for a doctor’s visit. This amount is paid after you pay your deductibles.
- Coinsurance is an effective cost-sharing method in which you pay a small percentage of the total amount for specific services after paying your deductibles. Your Medicare insurance plan covers the rest of the cost.
General Analysis of Medicare Supplement Plan Providers in Alabama
| Insurance Company | Plan types offered | Share of Alabama Medigap members |
| Blue Cross Blue Shield of Alabama | A, F, G and N. | 52% |
| Humana | A, B, C, F, K, L, and N | — |
| UnitedHealthcare | A, B, C, F, G, K, L, and N | 17.9% |
| Cigna | A, F, G, and N | 1.3% |
| Aetna | A, B, C, F, G and N. | — |
Types of Medicare Supplement Plans in Alabama
As of 2024, Alabama offers ten standard types of Medigap plans. Medigap Plans C and F are not available to new members who became eligible for Medicare after January 1, 2020.
Despite having the lowest enrollment of Medicare Supplement plans nationwide, Alabama has the highest number of Plan B beneficiaries of any state, with 91,194 enrollees.
Plan F is the most popular Medigap option in Alabama. In Alabama, 69,786 people are enrolled in Medigap Plan F. This plan provides comprehensive coverage but is only available to individuals who were eligible for Medicare before 2020.
Other popular Alabama Medicare Supplement Plans include Plan G, which has 24,219 beneficiaries, and Plan N, with 10,989 enrollees. Plan G is a top choice for new Medicare beneficiaries due to its extensive coverage and an average monthly premium of $118. Plan N, which offers similar coverage but includes some excess charges, costs an average of $104 per month for 65-year-olds and $140 per month for 75-year-olds.
No other Medigap plan in Alabama has over 10,000 enrollees, making Plans F, G, and N, the most commonly chosen options. If you’re considering a Medicare Supplement plan in Alabama, these plans offer the most comprehensive benefits at varying price points.
Cost Breakdown of Three Most Popular Medicare Supplement Insurance Plans in Alabama
The most popular supplement plans in Alabama are Medigap Plan F, G, and N. The cost for these plans varies.
Here’s a detailed cost breakdown for these popular Alabama Medigap plans.
Medicare Supplement Plan F
In Alabama, Medigap Plan F remains one of the most comprehensive Medicare Supplement plans available. It covers all deductibles, copayments, and coinsurance, offering full coverage for Medicare-approved expenses. The availability and monthly premiums vary due to factors such as an individual’s age, sex, health status, and location.
Despite being one of the most popular Medigap plans in Alabama, Plan F is no longer available to new applicants. Only beneficiaries who were eligible for Medicare before January 1, 2020, can enroll in Plan F. People who already have plan F can also keep the plan.
Medicare Supplement Plan G
There are 36 companies offering Plan G in Alabama. In Alabama, Medigap Plan G is one of the most popular Medicare Supplement plans for those not eligible for Plan F. Plan G offers extensive coverage for Medicare beneficiaries, with premiums and availability depending on factors such as age, sex, tobacco use, location, and health status.
Medicare Supplement Plan N
In Alabama, Medigap Plan N is a cost-effective Medicare Supplement plan that offers comprehensive coverage while requiring some out-of-pocket payments. The availability and monthly premiums vary based on factors such as age, gender, tobacco use, and location. For those seeking a balance between affordability and coverage, Plan N remains a popular choice among Medicare beneficiaries in Alabama.
Cost Determination of Medicare Supplement Plans in Alabama
The primary factors determining the cost of your plan are your location, age, provider, and the benefits it covers. Therefore, different counties have different prices for popular plans such as Medigap Plan F, G, and N. For example, Medicare Supplement in Baldwin County has premiums ranging from as low as $106.17 to as high as $213.29.
Generally, Medigap prices are determined in three ways.
- Community-rated: Everyone with the Medigap policy pays the same monthly premium, regardless of age.
- Issue age-rated: With this type of Medigap policy, the premium is based on your age when you first purchase the policy. The younger you are at the time of purchase, the lower your premium will be. The benefit of this rating system is that your premium won’t increase as you age. However, your premium may still go up due to inflation, healthcare cost increases, or changes in the insurance provider’s pricing.
- Attained age-rated: The premium is based on your current age and increases as you age. Therefore, plans that cost less at 65 may cost more at 85. While this type of policy may initially offer the lowest premium, it has the potential to become the most expensive over time. The premium can also increase due to inflation and other factors.
Besides this, the premiums may vary from provider to provider as these plans are offered by different private health insurance companies. However, the average monthly premium cost of a Medicare Supplement Plan in Alabama can range from $106.17 to $213.29.
Cost Comparison of the Top-Rated Medicare Supplement Plans in Alabama
As all the same types of Medigap plans offer the same coverage across Alabama, looking into the price difference can help you make a cost-efficient decision.
Your standardized benefits will be the same regardless of your chosen provider.
Let us look into the prices of the most popular Medigap companies that provide plans G and N in Alabama. Humana is the most affordable option for Plan G, while Aetna and Cigna offer the lowest rates for Plan N.
The table below provides the estimated cost for a 65-year-old non-smoker female.
| Insurance Company | Plan G Monthly Premium | Plan N Monthly Premium |
| Humana | $95.50 | $112 |
| UnitedHealthcare | $124 | $103 |
| Cigna | $141 | $98 |
| Aetna | $104 | $98 |
| Blue Cross Blue Shield | $185 | $106 |
Medicare Eligibility in Alabama
What makes you eligible for Medicare in Alabama? Medicare has the same eligibility criteria across all the States. You qualify for Medicare if:
- You are 65 years old or above
- You have a medical disability
- You have end-stage renal disease (ESRD)
- You have amyotrophic lateral sclerosis (ALS)
You can qualify for Medicare if you are approved by the Social Security Administration for either your age or disability.
Enrollment Period for Medicare in Alabama
The best time to purchase a Medigap policy is during the Open Enrollment period. Medicare has two enrollment periods besides open enrollment: your initial enrolment period (IEP) and a general enrolment period (GEP).
You can join, switch plans, or drop your coverage plans from October 15 to December 7 each year. Suppose you’re under 65 and have Medicare because of a disability or End‑Stage Renal Disease (ESRD). In that case, you might not be able to buy the Medigap policy you want, or any Medigap policy, until you turn 65.
Besides your open enrollment period, you can get a Medicare plan during your initial enrollment period (IEP). The IEP is 7 months long, starting 3 months before your 65th birthday and ending 3 months after you turn 65. You can enroll during this period if you haven’t had Medicare before.
If you miss your IEP, you can access Medicare by applying for it during the general enrollment period (GEP) every year between January 1 and March 31. During this period, you can also change your current Medicare plans. For example, if you have a Medicare Advantage plan and want to switch to Original Medicare, you can do so during this period.
Benefits of Medicare Supplement Plans in Alabama
Alabama residents have a range of benefits to avail from a Medicare Supplement Plan. These plans help cover gaps in standard Medicare coverage.
One of the biggest advantages of Medigap plans is that they help pay for out-of-pocket costs not covered by Original Medicare, such as copayments, coinsurance, and deductibles. This benefit provides financial relief to senior residents who are looking to lower additional costs associated with healthcare checkups.
Alabama offers ten standard Medigap plans, each providing different levels of coverage. This variety allows individuals to select a plan that best meets their healthcare needs and budget.
Medigap plans are standardized by the federal government, meaning the benefits for a particular plan are the same across different insurers. For example, all Plan G policies in Alabama provide the same standardized benefits to enrollees, simplifying the selection process. Beneficiaries only need to compare premiums, insurer ratings, and competitive rates when choosing a plan.
Another key benefit of Medigap plans is the freedom to choose any healthcare provider or hospital that accepts Medicare. Unlike Medicare Advantage plans, Medigap policies do not have network restrictions, making them an excellent choice for those who travel frequently or prefer more flexibility in their healthcare providers.
Some Medigap plans in Alabama also offer coverage for services not included in Original Medicare, such as emergency medical care while traveling outside the US. This added coverage makes Medigap an attractive option for those seeking broader protection and fewer out-of-pocket expenses.
Resources for Medicare in Alabama
Several organizations across Alabama provide free counseling and guidance to senior residents regarding Medicare plans. Here are some organizations that assist beneficiaries in Alabama.
| Organization | How you can get help | Website & Contact Info |
| Alabama Area Agencies on Aging | Alabama Area Agencies on Aging help senior adults access resources and services that support their independence and enhance their quality of life. These agencies manage various programs and assist other organizations for senior welfare. They also provide personalized counseling on Medicare. | Website | 205-333-2990 |
| Alabama Senior Medicare Patrol | The Alabama SMP program aims to educate senior adults on detecting and preventing Medicare fraud, errors, and abuse. You can address your concerns about potential fraud by telemarketers or healthcare providers. This agency also helps clarify any errors in Medicare statements or related bills. | Website | 800-243-5463 |
| State Health Insurance Assistance Program (SHIP) | SHIP program aims to provide guidance to seniors seeking advice regarding Medicare programs. Volunteers at SHIP offer free Medicare related guidance. They help resolve your Medicare enrolment queries. They can also help with Medicare claims and appeals. | Website | 800-243-5463 |
Select the Best Medicare Supplement Plan With Silveredge in Alabama
About 1.8 million Alabama residents are aged 50 and above. Major public health risks in Alabama affect the overall health quality of residents.
This considerable number of senior adults require healthcare coverage plans to significantly lower the cost of routine checkups. Plans such as Original Medicare in the region provide coverage for both inpatient and outpatient care.
Utilizing Medicare Supplement plans further lowers the costs associated with Original Medicare. As Medicare Supplement plans are standardized across the State, beneficiaries receive the same benefits. The only difference is the cost of these plans, as the premiums vary from provider to provider.
You must look into the competitive rates and plan availability in your region. You can seek expert advice from licensed advisors at Silveredge to compare plans, check availability, and enroll in a plan that best suits your healthcare needs. Contact Silveredge today to resolve your Medicare queries!
