Medicare Supplement premiums vary widely by plan type, your age, and where you live

Medicare Supplement plans (also called Medigap) cover costs that Original Medicare leaves you responsible for—copayments, coinsurance, and deductibles. The monthly premium you pay depends on which plan you choose, your age when you enroll, your location, and your insurance company. There is no single price; the same plan costs different amounts from different insurers, and costs rise as you age.

Most people pay between $100 and $300 per month for a Medigap plan, though some plans cost less and others cost significantly more. The least expensive plans typically cover fewer costs. The most comprehensive plans cover nearly everything Original Medicare does not, and they cost more. Your actual premium depends on decisions you make now and factors you cannot control later.

Key Takeaways

  • Medicare Supplement premiums typically range from $100 to $300 per month, but vary by plan letter, insurer, age, and state.
  • Plans rated by age (age-rated) start lower but increase every year; plans rated by issue age (issue-rated) lock in a lower rate at enrollment but may cost more upfront; community-rated plans cost the same for everyone regardless of age.
  • Enrolling within six months of turning 65 or starting Part B gives you may provide issue rights, meaning insurers cannot deny you or charge more based on health history.
  • You can switch plans during the annual open enrollment period (October 15 to December 7), though you may face medical underwriting if you move to a new insurer outside your may provide issue window.
  • Plan F and Plan G cover the most; Plan N and Plan D cost less but require you to pay some copayments and coinsurance.

How insurance companies price Medigap plans

Insurance companies use three main methods to set Medigap premiums. Age-rated plans charge based on your current age and increase the premium every year as you get older. Issue-age-rated plans charge based on your age when you first enroll and lock that rate in, though the premium still increases each year for everyone in the plan. Community-rated plans charge the same premium to everyone in your state or region, regardless of age or when you enrolled.

Age-rated plans often look cheapest at 65, but your premium grows faster over time. Issue-age-rated plans may cost more when you first sign up but grow more slowly. Community-rated plans do not change based on your age, so they may be cheaper if you are older or more expensive if you are younger. The same plan letter from two different companies can have very different pricing structures, so comparing actual quotes matters more than comparing plan letters alone.

Plan choices and what they cost

Medicare offers ten standardized Medigap plans, labeled A through N (Plan F is no longer sold to people new to Medicare after 2019, but existing enrollees can keep it). Each plan covers a defined set of costs. Plans F and G cover the most; Plan A covers the least. Plans in the middle—like Plan N and Plan D—cover some costs but leave you responsible for certain copayments or coinsurance.

More comprehensive plans cost more. Plan F or Plan G premiums often run $200 to $400 per month depending on your age and location. Plan A or Plan D might cost $80 to $150 per month. Plan N typically falls in the middle. The trade-off is that cheaper plans require you to pay copayments when you see a doctor or use other services, while comprehensive plans cover those costs. Over a year, a cheaper plan with low premiums but high copayments might cost you more than a pricier plan with no copayments.

Age and enrollment timing affect your rate

Your age when you enroll determines your starting premium and, for issue-age-rated plans, locks in your rate category for life. If you enroll at 65, your issue-age rate is based on 65. If you enroll at 72, your rate is based on 72. For age-rated plans, your premium increases each year regardless of when you enrolled.

Enrolling within six months of turning 65 or starting Medicare Part B gives you may provide issue rights. This means insurance companies must sell you a plan at standard rates and cannot charge more or deny you based on pre-existing conditions. If you miss this window and wait to enroll later, insurers can use medical underwriting—reviewing your health history—to decide whether to sell you a plan and at what price. Some insurers may decline to sell you a plan at all if you have certain health conditions. Delaying enrollment can cost you thousands in higher premiums or loss of coverage options.

Geographic variation in Medigap costs

Where you live significantly affects what you pay. Urban areas and states with higher healthcare costs generally have higher Medigap premiums. A Plan G in New York City might cost $250 per month, while the same plan in a rural area of another state might cost $120. Some states regulate how much insurers can increase premiums year to year; others do not. A few states have additional Medigap plans beyond the standard ten.

If you move to a different state, your premium may change. Some insurers operate in multiple states; others do not. You may need to switch plans or insurers when you relocate. Check what plans and insurers are available in your new location before you move, especially if you have a plan you are satisfied with.

When and how to compare Medigap costs

You can compare Medigap plans and get quotes from multiple insurers through Medicare.gov or by contacting insurers directly. Medicare.gov has a tool that shows plans available in your area, but it does not show prices—you must contact each insurer for a quote. Some states have health insurance counselors (through the State Health Insurance information Program, or SHIP) who can help you compare plans and costs at no charge.

The best time to shop is during the annual open enrollment period, October 15 to December 7, when you can switch to a different plan or insurer without medical underwriting (as long as you have had continuous coverage). Outside this window, switching insurers may trigger medical underwriting, which can result in higher premiums or denial. If you are within your may provide issue period (within six months of turning 65 or starting Part B), you can switch plans at any time without underwriting.

What happens to your premium over time

Medigap premiums increase every year. The increase depends on your plan's rating method and the insurer's claims experience. Age-rated plans increase faster as you age. Issue-age-rated plans increase more slowly but start higher. Some insurers raise premiums more than others; shopping every few years can reveal cheaper options from competitors.

If you find a cheaper plan from a different insurer, you can switch during open enrollment. If you switch within your may provide issue period, the new insurer cannot deny you or charge more based on health. If you switch outside that window, the new insurer can use medical underwriting. Some people stay with the same plan and insurer for years because switching feels complicated, but comparing costs periodically can save hundreds of dollars annually.

Frequently Asked Questions

Can I switch Medigap plans if my premium gets too high?

Yes, during the annual open enrollment period (October 15 to December 7) you can switch to a different plan or insurer without medical underwriting. If you are within six months of turning 65 or starting Part B, you can switch at any time without underwriting. Outside these windows, the new insurer may review your health history and charge more or deny coverage.

Why does the same plan cost different amounts from different insurance companies?

Each insurer sets its own premiums based on its claims experience, operating costs, and pricing strategy. Medicare does not set Medigap prices; it only standardizes what each plan covers. Comparing quotes from multiple insurers is essential because the same plan letter can vary by hundreds of dollars per year.

What is the difference between a copayment and coinsurance in a Medigap plan?

A copayment is a fixed dollar amount you pay for a service (for example, $25 per doctor visit). Coinsurance is a percentage of the cost you pay after Medicare pays its share (for example, 20 percent of a hospital stay). Comprehensive Medigap plans cover both; less expensive plans require you to pay some copayments or coinsurance.

Do I have to pay for Medigap if I am on Medicare?

No. Medigap is optional. You can stay on Original Medicare alone and pay out-of-pocket for costs Medicare does not cover, or you can enroll in a Medicare Advantage plan instead. Medigap is one option among several; the choice depends on your health, budget, and preferences.

If I enroll in Medigap late, will I pay a penalty?

There is no federal penalty for late enrollment in Medigap, but insurers can charge higher premiums or deny coverage based on medical underwriting if you enroll outside your may provide issue period. The longer you wait, the more likely you are to face higher costs or limited options.