insurance

Medicare Supplement (Medigap)

Definition

Private insurance covering costs not paid by Original Medicare — copayments, coinsurance, and deductibles.

Understanding Medicare Supplement Insurance

Medicare Supplement insurance, commonly called Medigap, is private insurance that covers the gaps in Original Medicare — specifically the deductibles, copayments, and coinsurance that Medicare Parts A and B do not pay. Medigap policies are standardized by the federal government into lettered plans (A, B, C, D, F, G, K, L, M, N), with each letter offering a specific set of benefits. Plan G has become the most popular since Plan F was closed to new enrollees after January 1, 2020. Unlike Medicare Advantage, Medigap does not restrict provider networks — any doctor or hospital that accepts Medicare accepts Medigap.

Medigap is sold by private insurers but regulated at both federal and state levels. During the Medigap Open Enrollment Period — the six months after a beneficiary turns 65 and enrolls in Medicare Part B — insurers must accept applicants regardless of health status. Outside that window, medical underwriting applies in most states, making it significantly harder to qualify.

How It Works in Practice

Medigap sales follow a different rhythm than Medicare Advantage. While MA sales concentrate during AEP, Medigap sales happen year-round because beneficiaries can enroll anytime (subject to underwriting outside their open enrollment window). Plan G premiums range from $100-250 per month depending on age, location, and carrier. Agent commissions typically run 20-25 percent of first-year premium — a $150 monthly premium generates $360-450 in first-year commission with 5-8 percent renewals ongoing. Top Medigap agents build substantial renewal books, generating $50,000-100,000 per year in passive renewal income after 5-7 years of production.

Why It Matters for Aged Leads

Aged Medicare Supplement leads are uniquely valuable because Medigap shopping is a deliberate, research-heavy decision. Beneficiaries compare plans, premiums, carrier ratings, and rate increase histories before buying. That research takes time — often 30-90 days from initial inquiry to purchase. This makes aged leads perfectly aligned with the Medigap buying cycle. A prospect who inquired 60 days ago is not a cold lead — they are mid-decision. They have likely been quoted by 2-3 agents, done their own research, and are close to a decision. Reaching them with a straightforward comparison and a no-pressure approach often closes the sale because you are arriving at the right moment. At $1-3 per aged Medicare lead versus $25-40 real-time, you can build a 500-lead weekly pipeline and systematically work the entire Medigap buying cycle.

Related Lead Types

Learn the Language of Aged Leads

Weekly tips, scripts, and strategies for sales professionals. Free, no spam.

Affiliate Disclosure: Some providers in our directory are affiliate partners. We may earn a commission when you visit them through our links. This never affects our ratings or recommendations. See our methodology