Supplemental insurance premiums depend on your age, health history, and which plan you choose
Supplemental insurance (also called Medigap) costs vary widely because each insurance company sets its own rates, and your age and health status affect what you pay. There is no single "average" — a 65-year-old in one state might pay $120 per month for Plan G, while someone the same age in another state pays $180 for the identical coverage. The range for popular plans typically falls between $100 and $300 per month, but some plans cost less and some cost more.
Your actual cost depends on three main factors: which of the ten standardized Medigap plans you choose, where you live, and your age when you first buy the policy. Some insurers also consider your health history, though federal law limits how much they can charge based on that. Understanding what drives these costs helps you compare plans and budget for coverage.
Key Takeaways
- Medigap premiums typically range from $100 to $300 per month, but vary by plan type, location, and your age.
- Plan G and Plan N are the most common choices for new enrollees, and their costs differ based on the insurance company and your state.
- Buying Medigap within six months of turning 65 and enrolling in Medicare Part B usually locks in lower rates that increase only with age and inflation.
- Your monthly premium may increase each year, and some insurers raise rates faster than others for the same plan.
- Comparing quotes from multiple insurers in your state is the only way to find the actual cost you will pay.
How the ten Medigap plans affect what you pay
Each of the ten standardized plans (labeled A through N) covers different combinations of Medicare's gaps — copayments, coinsurance, and deductibles. Plans that cover more costs charge higher premiums. Plan A is typically the least expensive because it covers the fewest gaps. Plans G and N are popular middle-ground options. Plan F, which covered the most, is no longer sold to people new to Medicare after 2020, though existing customers can keep it.
The difference between plans can be substantial. In the same location and insurance company, Plan A might cost $110 per month while Plan G costs $200 per month. The extra $90 per month buys you coverage for Medicare Part B excess charges and other gaps that Plan A does not cover. Your choice depends on how much out-of-pocket risk you want to carry versus how much premium you want to pay each month.
Why location and insurance company matter
Medigap rates vary by state and sometimes by county because each state regulates insurance differently, and each company decides whether to sell in that area and at what price. A Plan G policy might cost $150 per month in one state and $220 in another, even though the coverage is identical. Rural areas sometimes have fewer insurers to choose from, which can limit your options and affect pricing.
Within your state, different insurance companies charge different rates for the same plan. One insurer might offer Plan G for $160 per month while another charges $210 for the identical coverage. This is why comparing quotes from multiple insurers is essential — you could save $50 or more per month by choosing a different company, even if you pick the same plan.
Age and the timing of your purchase
Your age when you buy Medigap affects your starting premium, and that premium typically increases each year as you get older. Someone who buys Plan G at age 65 will pay less per month than someone who buys the same plan at age 72, even if both are buying from the same company in the same state.
The timing of your purchase also matters. If you buy Medigap within six months of turning 65 and enrolling in Medicare Part B, federal law protects you from being denied coverage or charged more based on health problems — this is called the open enrollment period. If you wait longer to buy, some insurers can charge you more or refuse to sell you a policy if you have certain health conditions. Buying early locks in a lower rate and guarantees you can get coverage.
How premiums increase over time
Your Medigap premium will almost certainly increase each year. Some of this increase is automatic — your age goes up, and rates for your age group rise. But insurance companies also raise rates across all customers to account for inflation and medical cost trends. The rate of increase varies by company and plan; some insurers raise rates 3 to 5 percent per year, while others increase by 8 percent or more.
You can see these increases on your renewal notice each year. If your premium jumps significantly, you have the option to switch to a different Medigap plan or a different insurance company, though switching may involve a new health review depending on your age and how long you have had coverage. Some people switch to a less expensive plan as they age to keep their monthly cost down.
What to expect when comparing quotes
When you request quotes from insurance companies, you will see a range of prices for the same plan. A quote typically shows the monthly premium, what the plan covers, and any waiting periods for pre-existing conditions. Some companies offer discounts for paying annually instead of monthly, or for setting up automatic payments.
Collect quotes from at least three insurers in your state before deciding. You can request quotes directly from insurance company websites, through your State Health Insurance information Program (SHIP), or through Medicare.gov's plan comparison tool. Write down the plan name, the monthly cost, and the company name so you can compare them side by side. The lowest price is not always the best choice if the company has poor customer service ratings, but price is a legitimate factor in your decision.
When to buy and what happens if you miss the window
The best time to buy Medigap is during your Medigap open enrollment period, which runs for six months starting the month you turn 65 and enroll in Medicare Part B. During this window, you can buy any Medigap plan without being denied or charged more because of health problems.
If you miss this six-month window, you can still buy Medigap, but insurers in most states can refuse to sell you a policy or charge you more if you have a pre-existing condition like diabetes or heart disease. A few states have different rules that offer more protection, but most do not. Missing the window does not make Medigap unavailable, but it can make it more expensive or harder to get. If you are still working and have employer coverage at 65, you may have a different enrollment window when that coverage ends.
Frequently Asked Questions
Is Medigap the same price everywhere in the United States?
No. The same plan costs different amounts in different states and different amounts from different insurance companies within the same state. A Plan G might cost $150 per month in one state and $220 in another. You must get quotes from companies in your state to know what you will actually pay.
Can I switch Medigap plans to save money?
Yes, you can switch plans or companies at any time, but if you switch after your open enrollment period ends, the new insurer can deny you or charge you more based on health problems. Switching within your open enrollment period has no health restrictions. After that window closes, switching becomes riskier unless your state offers may provide issue rights in specific situations.
Why does my Medigap premium go up every year?
Premiums increase because you are getting older and insurance companies raise rates for older age groups. Companies also raise rates across all customers to cover inflation and rising medical costs. The amount of increase varies by company and plan, typically between 3 and 8 percent per year.
What is the difference between Plan G and Plan N?
Plan G covers Medicare Part B excess charges and most other gaps, while Plan N does not cover excess charges but costs less per month. Plan N also has a $20 copay for doctor visits and a $50 copay for emergency room visits. Plan G is usually better if you see doctors frequently; Plan N costs less if you rarely need care.
Do I have to buy Medigap, or can I choose Medicare Advantage instead?
You do not have to buy Medigap. Medicare Advantage (Part C) is an alternative that combines Part A and Part B coverage with prescription drug coverage, usually for a lower or zero monthly premium. However, Medicare Advantage plans have networks, copays, and referral requirements that Medigap does not. The choice depends on your doctors, your budget, and how much flexibility you want.