Plan C is a Medigap policy that was discontinued for new enrollees in 2020

Plan C was a standardized Medigap insurance option that covered your Part A deductible, Part B deductible, coinsurance, and copayments. It also paid for skilled nursing facility coinsurance and foreign travel emergency care. If you enrolled in Plan C before January 1, 2020, you can keep it. If you did not have it by that date, you cannot buy it anymore — Medicare replaced it with Plan G for all new Medigap customers.

The reason for the change was practical: Plan C covered the Part B deductible (which was $233 in 2024, though this amount changes yearly). Medicare decided that covering this deductible made the insurance less transparent and encouraged unnecessary doctor visits. Plan G does the same job as Plan C did, except it does not cover the Part B deductible — you pay that out of pocket first, then Plan G covers everything else.

If you already have Plan C, you do not have to switch. You can keep your current policy as long as you pay the premiums. Your coverage stays the same. But if you are shopping for Medigap now, Plan C is not an option.

Key Takeaways

  • Plan C covered the Part A deductible, Part B deductible, coinsurance, and copayments, but is no longer sold to new customers as of January 1, 2020.
  • If you enrolled in Plan C before 2020, you can keep it indefinitely by continuing to pay premiums.
  • Plan G replaced Plan C and covers nearly everything Plan C did, except the Part B deductible, which you pay yourself.
  • The Part B deductible amount changes each year and is separate from your monthly Medigap premium.

Who still has Plan C and what that means

People who signed up for Plan C before January 1, 2020, are called "grandfathered" enrollees. You can renew your Plan C every year without losing it, even though it is no longer sold. Your insurance company must continue to offer it to you as long as you keep paying.

The trade-off is that Plan C premiums have generally risen faster than Plan G premiums in recent years. Some people with Plan C find that their monthly cost has climbed significantly. If that happens to you, you have the option to switch to Plan G or another Medigap plan, but you can only do this during your open enrollment period or if you have a may have access to life event (like turning 65 or losing employer coverage).

How Plan C compared to Plan G

The main difference between Plan C and Plan G is the Part B deductible. In 2024, the Part B deductible was $233 — you pay this amount out of pocket before Plan G starts covering your doctor visits and outpatient services. With Plan C, the plan paid this deductible for you.

For most people, Plan G is actually a better deal now because the monthly premium savings outweigh the annual Part B deductible. If you visit the doctor frequently or have many outpatient services, you might hit that deductible quickly. But if you have fewer doctor visits, you may come out ahead by switching to Plan G and paying the deductible yourself.

Both plans cover the same things after the deductible: Part A coinsurance, Part B coinsurance, skilled nursing facility coinsurance, blood transfusions, and foreign travel emergency care. The only real difference is who pays the Part B deductible.

What happens if you want to switch away from Plan C

If you have Plan C and want to change to Plan G or another Medigap plan, you can do so during your annual open enrollment period, which runs from October 15 to December 7 each year. Your new coverage starts January 1.

You can also switch outside of open enrollment if you have a may have access to event. These include turning 65, losing employer coverage, moving to a new state, or having your current plan discontinued. When you have a may have access to event, you usually have 60 days to switch without being denied coverage or charged more because of pre-existing conditions.

Before you switch, compare the monthly premiums of Plan G and other plans in your area. Premiums vary by insurance company and by where you live, so what costs $150 a month in one state might cost $200 in another. You can call your current insurance company or contact your State Health Insurance information Program (SHIP) for a free comparison.

The Part B deductible and how it works

The Part B deductible is the amount you must pay for covered services before Medicare Part B starts paying its share. This deductible resets every calendar year on January 1. In 2024 it was $233, but it changes annually based on healthcare costs.

The deductible applies to doctor visits, outpatient surgery, diagnostic tests, and other Part B services. Once you have paid $233 out of pocket in a calendar year, Medicare and your Medigap plan split the cost of covered services for the rest of that year. If you have Plan C, the plan pays this $233 for you. If you have Plan G, you pay it yourself.

Many people with Plan G reach their deductible by late January or February if they have multiple doctor appointments or tests. Once you hit it, Plan G covers 80 percent of most services (Medicare pays 80 percent, you pay 20 percent coinsurance, and Plan G covers your 20 percent).

When Plan C was available and why it changed

Plan C was sold for decades as a popular Medigap option. It was especially attractive to people who wanted comprehensive coverage without worrying about deductibles. But in 2015, Congress passed a law that required Medicare to phase out Plan C for new enrollees, effective January 1, 2020.

The reasoning was that covering the Part B deductible reduced transparency in healthcare costs. When a plan pays the deductible, patients do not see the true cost of their first doctor visit of the year, which can lead to unnecessary care. By making people aware of the deductible, Congress hoped to encourage more thoughtful use of healthcare services.

Plan G was designed as the replacement. It offers nearly identical coverage but requires you to pay the Part B deductible yourself, making the cost of that first visit visible. For most people, the monthly savings on Plan G premiums more than make up for paying the deductible once a year.

Other Medigap plans you might consider instead

If you are looking for Medigap coverage and Plan C is not an option, you have nine other standardized plans to choose from: Plan A, Plan B, Plan D, Plan F, Plan G, Plan K, Plan L, Plan M, and Plan N. Each covers a different combination of costs.

Plan G is the most popular replacement for Plan C because it covers nearly everything Plan C did. Plan F is also comprehensive but is only sold to people who were may be able to access for Medicare before January 1, 2020. Plan A is the most basic and least expensive option. Plans K, L, M, and N offer middle-ground coverage at lower premiums.

The best plan for you depends on your health, how often you see doctors, and your budget. A SHIP counselor can review your situation and help you compare plans at no cost. You can find your local SHIP by calling 1-800-MEDICARE or visiting Medicare.gov.

Frequently Asked Questions

Can I still buy Plan C if I am turning 65 this year?

No. Plan C has not been sold to new customers since January 1, 2020. If you are turning 65 now, you can choose from Plan A, Plan B, Plan D, Plan F (if you were may be able to access for Medicare before January 1, 2020), Plan G, Plan K, Plan L, Plan M, or Plan N. Plan G is the closest match to what Plan C offered.

If I have Plan C, will my insurance company force me to switch?

No. Your insurance company must continue to offer Plan C to you as long as you pay your premiums. You can keep it for as long as you want. However, premiums may increase over time, so it is worth comparing Plan G costs periodically to see if switching would save you money.

What is the difference between Plan C and Plan F?

Plan C and Plan F are nearly identical — both cover the Part A deductible, Part B deductible, coinsurance, and copayments. The only difference is that Plan F also covers Part B excess charges (charges above Medicare's approved amount). Plan F is only sold to people who were may be able to access for Medicare before January 1, 2020, so if you could not buy Plan C, you cannot buy Plan F either.

If I switch from Plan C to Plan G, will I be denied coverage?

No. Switching between Medigap plans during your open enrollment period (October 15 to December 7) does not require medical underwriting. You cannot be denied coverage or charged more because of pre-existing conditions. If you switch outside of open enrollment, you may face underwriting, but a may have access to life event (like moving or losing coverage) usually waives this requirement.

Does Plan C cover prescription drugs?

No. Plan C, like all Medigap plans, does not cover prescription drugs. You need a separate Part D prescription drug plan for that coverage. You can enroll in Part D when you first become may be able to access for Medicare, or during the annual open enrollment period from October 15 to December 7.