Medicare Supplement Insurance, also known as Medigap, helps cover out-of-pocket costs like deductibles, copayments, and coinsurance that Original Medicare doesn’t pay. But before enrolling, many beneficiaries ask: What is the average cost of Medicare supplement plans?
That’s a curious question. But it makes sense when you learn that insurance companies are not required to publish their rates like Medicare Advantage plans are. The reason is because Medigap is not health insurance. It’s indemnity insurance, so there isn’t a single rate for everyone.
Rates depend on several factors: age, location, plan type, and insurer pricing methods. On average, Medigap plans cost between $50 and $300 per month, with Plan G and Plan N being the most popular choices. However, actual premiums vary significantly from state to state, making it essential to compare multiple insurance carriers before choosing a plan.
In this guide, we’ll break down:
- The average cost of popular Medigap plans
- Factors that affect pricing (like age & tobacco use)
- How to find the most affordable plan in your area
Want to see your personalized Medigap rates? Get a free quote now:
What Is the Average Cost of Medicare Supplement Plans?
The monthly premium for a Medigap plan can range from $50 to $300 per month, depending on the plan and location. Here’s a general cost breakdown of popular Medigap plans:
| Medigap Plan | Average Cost (Age 65) | Average Cost (Age 75) | Average Cost (Age 85) |
|---|---|---|---|
| Plan G (Most Popular) | $120 – $180 | $140 – $220 | $170 – $250 |
| Plan N (Lower Premiums, Some Copays) | $90 – $150 | $110 – $180 | $130 – $210 |
| Plan F (Only for Those Eligible Before 2020) | $150 – $220 | $180 – $260 | $200 – $280 |
Costs vary widely, so it’s essential to compare plans. Get a personalized quote here:
Get a FREE Medicare Supplement Rate Comparison Report from Medicare.org.
Our report gives you the essential details you need to make an informed decision—no sales pressure, just transparent information.
Medicare.org is owned by Allstate but operates independently to provide unbiased rate information. We prioritize education, transparency, and your trust.
Factors That Affect Medigap Premiums
While Medigap plans are standardized (meaning benefits don’t change between insurers), prices can vary significantly based on the following factors:
1️⃣ Age & Pricing Method
- Community-rated: Everyone pays the same premium, regardless of age.
- Issue-age-rated: Your premium is based on the age you buy the plan (younger = cheaper).
- Attained-age-rated: Your premium starts lower but increases as you age.
2️⃣ Location & State Regulations
- Some states have higher healthcare costs, leading to higher Medigap premiums.
- Lowest-cost states: Iowa, Nebraska, North Dakota.
- Highest-cost states: New York, Massachusetts, Florida.
3️⃣ Tobacco Use & Health History
- Smokers often pay 10-20% more for Medigap coverage.
- Some insurers may charge more for pre-existing conditions if you enroll outside of the Medigap Open Enrollment Period.
Want to compare real rates in your state? Get a free quote here:
Why Medigap Prices Increase Over Time
Many Medicare beneficiaries assume their Medigap premium will stay the same, but most plans increase annually due to several key factors:
- Attained-Age Pricing – If your Medigap policy is attained-age-rated, your premium automatically increases as you get older. Some policies start cheaper at age 65 but become more expensive over time.
- Medical Inflation & Rising Healthcare Costs – As healthcare costs rise, insurers adjust Medigap premiums to keep up with claims expenses. Increased Medicare costs (such as higher Part A & B deductibles) also impact pricing.
- Insurance Company Rate Adjustments – Insurers regularly review their risk pool & claims data and may raise rates across the board. Companies with fewer new enrollees tend to increase rates faster to cover costs.
- Changes in the Risk Pool – Medigap plans don’t accept new, younger enrollees every year like employer insurance does. If more high-claim individuals stay in a plan, rates rise to balance out expenses.
🔹 What This Means for You:
- Attained-age plans are cheaper at first but increase significantly over time.
- Some insurers raise rates more than others, so it’s smart to compare companies.
How to Find the Best Price for a Medigap Plan
- Compare multiple insurers → Rates vary even for the same plan.
- Ask about discounts → Household, non-smoker, or annual payment discounts.
- Check insurer rate increase history → Avoid companies with steep annual hikes.
- Use a Medigap quote service → Find the best price in minutes.
Compare plans now to lock in the best rate:
FAQs About Medigap Costs
1. How much does a Medigap Plan G policy cost on average?
Between $120-$180 per month, but prices vary by state and age.
2. Does Medigap pricing change every year?
Yes, most plans increase annually due to inflation and insurer adjustments.
3. Can I get a cheaper Medigap policy if I’m healthy?
Only if you apply outside of the Medigap Open Enrollment Period, when insurers can use medical underwriting.
Conclusion: Compare Medigap Plans to Get the Best Price
The average cost of Medicare Supplement plans depends on multiple factors—but the key to getting the best rate is to compare plans before enrolling.
Your best next step? Get a free, no-obligation Medigap quote today to find the lowest prices in your area.
Check Medigap rates now:
Get a FREE Medicare Supplement Rate Comparison Report from Medicare.org.
Our report gives you the essential details you need to make an informed decision—no sales pressure, just transparent information.
Medicare.org is owned by Allstate but operates independently to provide unbiased rate information. We prioritize education, transparency, and your trust.