How Much Does a Medicare Supplement Insurance Plan Cost?

Medicare Supplement Insurance (Medigap) plan costs can vary based on age, location, tobacco usage, plan type, pricing method and more. On the lower end, Medigap plans can cost $30-$40 per month. On the higher end, monthly premiums can get up into the hundreds of dollars.

Medigap policies cover certain copays, coinsurance and deductibles you would otherwise be responsible for after Medicare pays its share of covered services. Because each plan type has standard benefits, it’s a good idea to compare and choose a company based significantly on price.

Medicare supplemental insurance cost

Medigap premiums

All Medigap policies have premiums. Generally speaking, you’ll pay the lowest premiums for high-deductible plans or plans with less coverage, like Plan K or Plan L. Conversely, a plan that covers more, such as Plan G, tends to have a higher premium.

Premiums can also vary based on age, health status, tobacco usage, company, pricing method, state law and other factors, so it’s important to compare quotes when shopping for a Medigap policy.

Read your quotes carefully when you’re shopping for plans. Sometimes Medigap pricing can be pretty unintuitive; for example, you might see a high-coverage plan such as Plan G priced below Plan A, which offers only basic coverage.

Other Medigap costs

Some Medigap plan types have other costs in addition to their premiums:

• Medigap Plan N has copays for certain office visits and some emergency room visits.

• Medigap Plan K and Plan L require you to pay for a percentage of most covered services. With Plan K, you pay 50% out of pocket. With Plan L, you pay 25%.

• High-deductible plans require you to meet a deductible of before the Medigap policy pays for anything.

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Medigap cost comparison chart

Here are the price ranges for each Medigap plan type available to a 65-year-old female nonsmoker in Atlanta, which has average pricing among U.S. states.

A $364 Medigap Plan G policy has the same standardized Medicare coverage as one that costs $129. Companies may add on some extra perks like discounted gym memberships, but the core Medicare benefits are the same, so go ahead and compare based on price.

How Medigap companies set prices

You may see Medicare Supplement Insurance plans priced in a few ways:

• Community-rated.

  Premiums aren’t based on age — everyone pays the same monthly premium. This kind of pricing may also be called “no age-rated.”

• Issue-age-rated.

  Premiums are based on your age when purchased. Generally, younger people pay lower premiums than older people. This kind of pricing may also be called “entry age-rated.”

• Attained-age-rated.

  Premiums are based on your current age, meaning costs will go up as you age.

Some states require certain pricing for Medicare Supplement Insurance, so not all pricing methods are available in every state.

Medigap discounts

You might be able to save on premiums by qualifying for a discount with some companies. Here are a few examples:

• Household discounts

  for living in the same household as another qualifying person with a Medigap policy from the same company.

• Online application discounts

  for signing up online rather than by phone or an agent.

• Automatic or prepayment discounts

  for setting up automatic withdrawals from a bank account or prepaying for a full year of coverage.

• Multi-policy discounts

  for members who combine a Medigap policy with other insurance from the same company, such as life insurance or a dental plan.

Sign up early for the lowest Medigap prices

To get the best price and easiest enrollment experience, sign up for a Medigap plan during your Medigap open enrollment period.