Key Takeaways

• Medicare Supplement (Medigap) plans can help cover costs like deductibles, copayments, and coinsurance that Original Medicare does not fully pay for, but they are not part of the Postal Service Health Benefits (PSHB) Program.

• Choosing a Medicare Supplement plan requires careful consideration, especially for PSHB enrollees who may already have robust coverage options integrated with Medicare.

Understanding Medicare Supplement Plans in 2025

Medicare Supplement plans, also known as Medigap plans, exist to help you manage the out-of-pocket costs that Original Medicare Parts A and B leave behind. As a postal retiree or worker transitioning into Medicare and PSHB, you may wonder whether a Medicare Supplement plan is necessary or even beneficial for you.

Although Medigap policies offer financial protection against some unexpected healthcare costs, they do not always align with the specific needs or coverage advantages you receive through PSHB. Understanding where they fit in 2025 is crucial for making the right healthcare decisions.

What Medicare Supplement Plans Cover

Medigap policies are designed to “fill the gaps” in Original Medicare. These gaps typically include:

• Medicare Part A coinsurance and hospital costs after Original Medicare benefits are used up

• Medicare Part B coinsurance or copayments

• Blood (first 3 pints)

• Part A hospice care coinsurance or copayment

• Skilled nursing facility care coinsurance

• Medicare Part A deductible

• Medicare Part B deductible (only under certain older policies)

• Foreign travel emergency care (up to plan limits)

In 2025, newer Medicare Supplement policies no longer cover the Part B deductible for individuals newly eligible for Medicare.

How Medicare Supplement Plans Work

If you have Original Medicare and a Medigap plan, Medicare pays its share of approved healthcare costs first. Then, your Medigap plan pays its portion. This secondary coverage structure can reduce your financial risk for unexpected hospitalizations, surgeries, or specialist visits.

However, Medigap plans only work alongside Original Medicare. They do not function with Medicare Advantage (Part C) plans. Also, they do not cover:

• Long-term care

• Vision or dental care

• Hearing aids

• Eyeglasses

• Private-duty nursing

• Prescription drugs (you need a separate Part D plan)

Medicare Supplement Plans vs. PSHB Coverage

As a PSHB enrollee, you already have robust health insurance coverage tailored to coordinate with Medicare. In many cases, your PSHB plan may:

• Cover most or all of Medicare deductibles and copayments

• Include additional benefits like dental, vision, and hearing coverage

• Provide prescription drug benefits integrated with Medicare Part D

Adding a Medicare Supplement policy on top of PSHB coverage may result in paying for more insurance than you truly need. It’s critical to understand how your PSHB plan coordinates with Medicare first before considering a Medigap policy.

Enrollment Timelines You Should Know

If you do decide you want a Medicare Supplement plan, timing matters.

• Medigap Open Enrollment Period: This 6-month window begins the first month you are both age 65 or older and enrolled in Medicare Part B.

• Guaranteed Issue Rights: Outside the open enrollment window, you might not qualify for a plan without medical underwriting unless you have specific circumstances (such as losing other credible coverage).

In 2025, these timelines remain strictly enforced. Missing your Open Enrollment Period could limit your choices or increase your premiums.

Costs to Consider in 2025

While specific plan prices vary, it’s important to know that Medicare Supplement plans require you to pay:

• A monthly premium to the private insurer

• Your Medicare Part B premium ($185 in 2025)

• Any uncovered healthcare costs, depending on the plan level you select

If you already have PSHB coverage that covers your Medicare Part A and Part B coinsurance, you might not see enough value from an additional Medigap policy to justify the extra monthly expense.

Medicare Supplement Plans Do Not Cover Prescription Drugs

Another important note: Medicare Supplement plans do not include prescription drug coverage. You must enroll in a standalone Medicare Part D plan for prescription drugs.

Fortunately, PSHB plans automatically coordinate with Medicare Part D through an Employer Group Waiver Plan (EGWP), offering drug coverage without needing a separate plan.

If you chose a Medigap plan instead of relying on PSHB’s integrated coverage, you would need to separately shop for and enroll in a Part D plan.

When a Medicare Supplement Might Make Sense

Although most PSHB enrollees find that their coverage is comprehensive, there are situations where a Medicare Supplement policy could make sense:

• You opt out of PSHB coverage and only keep Original Medicare.

• You have specific medical needs that involve high out-of-pocket costs not fully covered by Medicare and your other available plans.

• You live abroad for extended periods, as some Medigap plans offer limited foreign travel emergency coverage.

However, these situations are rare for postal retirees and workers in the PSHB Program.

Important Rules About Dropping a Medigap Plan

If you decide later that a Medicare Supplement plan is not right for you, be aware:

• You may not be able to get the same plan back later without medical underwriting.

• You could face higher premiums if you reapply outside protected enrollment periods.

Choosing wisely the first time around is key.

What Happens if You Only Have PSHB and Medicare

If you stick with PSHB and enroll in Medicare Parts A and B, your healthcare coverage typically includes:

• Lower copays and coinsurance

• Lower deductibles

• Coordinated benefits with Medicare Part D for prescriptions

• Coverage for vision, dental, and hearing

This approach generally avoids the need for additional insurance, simplifying both your coverage and your monthly expenses.

In 2025, PSHB plans remain one of the most comprehensive forms of retiree health coverage available, especially when paired with Medicare.

Questions to Ask Before You Enroll in a Medicare Supplement Plan

Before making any enrollment decisions, it’s worth asking yourself:

• Does my PSHB plan already cover what a Medigap plan would cover?

• Am I willing to pay an additional premium for duplicate or minimal extra coverage?

• Will I lose any benefits by leaving PSHB for a Medigap plan?

• Am I aware of the Medicare Supplement Open Enrollment rules and deadlines?

• Would I still need to purchase separate Part D coverage for prescriptions?

Thinking through these questions can save you money, prevent coverage gaps, and ensure peace of mind as you manage your healthcare needs.

Be Cautious of Aggressive Marketing

In 2025, marketing for Medicare Supplement plans remains widespread, particularly toward new retirees and those aging into Medicare. Always remember:

• Marketing materials may emphasize benefits that you already have under PSHB.

• Sales tactics often downplay the extra costs of adding Medigap coverage to already-strong PSHB-Medicare coordination.

Take time to evaluate whether you truly benefit from extra coverage before signing up.

Why Staying Informed Matters

Your healthcare needs may evolve, but making changes to Medicare-related coverage after initial enrollment can be complicated. Staying informed about how Medicare, Medigap, and PSHB work together ensures you make the best decisions the first time around.

Because PSHB plans adapt to integrate with Medicare’s annual updates, you can typically rely on them to continue offering competitive, comprehensive healthcare coverage without needing to look elsewhere.

Making the Right Choice for Your Health and Wallet

Choosing whether to add a Medicare Supplement plan to your healthcare strategy in retirement is a major decision. For most postal retirees and workers enrolled in PSHB, your existing benefits coordinate closely with Medicare and provide strong protection.

If you still have questions or feel unsure, you can always reach out for personalized assistance. Speaking with a licensed insurance agent listed on this website can help you weigh your options carefully and ensure you’re fully covered—without paying for coverage you don’t actually need.