Medicare Supplement Plan Premiums Vary by Plan, Location, and Age

Medicare Supplement plans (also called Medigap) do not have a single price. What you pay depends on which plan you choose, where you live, your age, and your health status when you first sign up. A plan that costs $120 a month in one state might cost $180 in another. The same plan might cost $95 at age 65 and $220 at age 75 with the same insurance company.

The federal government sets what each plan covers — Plan A covers the same things in every state — but does not set the price. Each insurance company decides what to charge. This means you can pay different amounts for identical coverage depending on which company you choose.

Most people pay their Medigap premium monthly, though some companies offer quarterly or annual payment options. The premium is separate from your Medicare Part B premium, which you pay to Medicare itself.

Key Takeaways

  • Monthly premiums for Medigap plans typically range from $100 to $300 depending on the plan letter, your age, and your location, but these figures vary widely by insurer and state.
  • Your age when you first sign up affects your rate for life — enrolling at 65 usually costs less than waiting until 70, even with the same company.
  • Insurance companies use three different pricing methods (age-based, issue-age, and community-rated), and the method used changes what you pay over time.
  • You can switch plans or companies during the annual open enrollment period (October 15 to December 7) without being denied for pre-existing conditions.
  • Plan F and Plan G cover the most but cost more; Plan A and Plan N cover less but have lower premiums.

How Insurance Companies Price Medigap Plans

Insurance companies use one of three pricing methods, and which one they use affects what you pay as you age. Understanding which method a company uses helps you predict whether your premium will stay stable or rise sharply.

Age-based pricing (also called attained-age) means your premium goes up as you get older, even if you stay with the same company. A plan that costs $120 at age 65 might cost $180 at age 75 and $250 at age 85. This is the most common method and usually offers the lowest starting price.

Issue-age pricing locks in your rate based on your age when you first sign up. If you enroll at 68, your rate is based on 68 and stays lower than someone who enrolled at 72, even if you both have the same company now. Your premium still rises over time, but more slowly than with age-based pricing.

Community-rated pricing means everyone in your state pays the same premium regardless of age. This sounds fair but usually results in higher premiums for younger retirees and lower premiums for older ones. Few companies use this method anymore.

What Plan Letter You Choose Affects Your Monthly Cost

Medigap comes in lettered plans (A, B, D, G, K, L, M, N) that are standardized by federal law. Each letter covers a different combination of costs that Medicare does not pay. Plans with more coverage cost more each month.

Plan A is the least expensive and covers basic gaps: Medicare Part A coinsurance, Part B coinsurance, and the first three pints of blood. It does not cover the Part B deductible. Monthly premiums often start around $100 to $150 at age 65, depending on location and company.

Plan G covers nearly everything Plan A does, plus the Part B deductible, and is the most popular choice for people newly may be able to access for Medicare. It costs more — often $180 to $280 monthly at age 65 — but saves money if you use many medical services. Plan F, which is no longer sold to people new to Medicare, covered even more and was the most expensive option.

Plan N covers most gaps but requires you to pay a small copay at the doctor's office (usually $20) and for emergency room visits. This lower cost-sharing means lower premiums, often $130 to $200 monthly at age 65.

Plans K and L cover less and have higher out-of-pocket limits you must pay before coverage kicks in. They have the lowest premiums but shift more cost to you when you need care.

Age and Enrollment Timing Change What You Pay

Your age when you first sign up for Medigap matters more than you might think. If you enroll within six months of turning 65 and going on Medicare Part B, you have may provide issue rights. This means no insurance company can deny you, charge you more, or exclude pre-existing conditions. This is the only time you have this protection.

If you wait and sign up at 70, insurance companies can medically underwrite you — meaning they can ask about your health history and charge you more or refuse to cover you entirely. Some companies will still take you, but at a higher rate. This is why most financial advisors recommend signing up for Medigap during your initial enrollment window, even if you are healthy.

Once you are enrolled, your rate depends on the pricing method the company uses. With age-based pricing, your premium will climb every year. With issue-age pricing, it climbs more slowly. Knowing which method your company uses helps you budget for future increases.

Location and State Regulations Shape Your Options

Your state and even your county affect what plans are sold and what they cost. Some states have more insurers competing, which can lower prices. Other states have few options, which can mean higher premiums.

A few states (Massachusetts, Minnesota, and Wisconsin) have their own Medigap rules and do not follow the federal plan letters. If you live in one of these states, the plans available and their coverage differ from the rest of the country.

Some states regulate how much premiums can increase year to year. Others do not. This affects whether your rate stays predictable or jumps unexpectedly. Checking your state's insurance commissioner website can tell you what rules explore where you live.

How to Compare Costs Across Companies

Because the same plan costs different amounts at different companies, comparing prices is worth your time. You are looking at the same coverage (Plan G is Plan G everywhere), so the lowest price for the plan you want is the best deal.

Contact insurance companies directly or use the Medicare Plan Finder tool on Medicare.gov to see what plans are sold in your area and what each costs. Write down the monthly premium, the pricing method (age-based, issue-age, or community-rated), and whether the company has a good reputation for customer service and claims processing.

Do not choose based on price alone. A company with the lowest premium might have poor customer service or slow claims processing. Read reviews from current customers and check the National Association of Insurance Commissioners (NAIC) complaint database to see if a company has patterns of problems.

You can switch plans or companies once a year during the annual open enrollment period (October 15 to December 7). If you switch during this window, you cannot be denied or charged more for pre-existing conditions. Outside this window, switching is harder and may require medical underwriting.

What Is Not Included in Your Medigap Premium

Your Medigap premium covers the gaps in Medicare Parts A and B, but it does not cover everything. Prescription drugs are not included — you need a separate Part D plan for that, which has its own premium.

Medigap does not cover dental, vision, hearing aids, or long-term care. If you need these services, you must pay out of pocket or find separate coverage. Some Medicare Advantage plans (Part C) include these benefits, but they work differently than Medigap and have different costs.

Your Medigap premium also does not include your Part B premium, which you pay to Medicare. Part B covers doctor visits and outpatient services. You must pay both your Medigap premium and your Part B premium each month.

Frequently Asked Questions

Can my Medigap premium go up if I stay with the same company?

Yes. With age-based pricing, your premium rises as you age. With issue-age pricing, it rises more slowly. Even with the same company, your rate can increase year to year. Some increases are tied to inflation or medical cost trends, not just your age.

What happens if I cannot afford my Medigap premium?

Some states offer programs to help low-income seniors pay Medigap premiums, though these are limited. Contact your state's health insurance information program (SHIP) to learn what help may be available. You can also switch to a less expensive plan letter during open enrollment, though this means less coverage.

Is it cheaper to get a Medicare Advantage plan instead of Medigap?

Medicare Advantage (Part C) often has lower or zero premiums, but it works differently. You have network restrictions, prior authorization requirements, and out-of-pocket limits. Medigap has no networks and covers more broadly. The right choice depends on your health, doctors, and budget.

Do I have to pay income tax on my Medigap premium?

No. Medigap premiums are not tax-deductible for most people. If you are self-employed, you may be able to deduct them as a business expense. Consult a tax professional about your specific situation.

What if I miss the open enrollment period to switch plans?

Outside the October 15 to December 7 window, switching is difficult. Insurance companies can medically underwrite you and deny coverage or charge more. Some states have limited exceptions for life events like moving or losing other coverage. Contact your state's SHIP program to learn what options exist in your situation.