If you have Original Medicare and want to control your out-of-pocket costs, you might want to buy Medicare Supplement Insurance, or Medigap. Medigap policies cover certain copays, coinsurance and deductibles you would otherwise be responsible for after Medicare pays its share of covered services. Show
The government standardizes Medigap plans, but they’re sold by private insurance companies, which set the premiums. So what you’ll pay can depend on such factors as geographic location, age, sex, tobacco use, health and medical history, insurance company, and plan. Here’s what you need to know about the cost of Medicare Supplement Insurance. Medigap premiumsAll Medigap policies have premiums. The least expensive plans for a 65-year-old might cost as little as $30-$40 per month. For older beneficiaries and plans with more coverage, monthly premiums can cost hundreds of dollars. Generally speaking, you’ll pay the lowest premiums for 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. 🤓Nerdy Tip 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 costsSome Medigap plan types have other costs in addition to their premiums:
Medigap cost comparison chartHere are the price ranges for each Medigap plan type available to a 65-year-old nonsmoker in North Carolina, which has average pricing among U.S. states.
🤓Nerdy Tip A $341 Medigap Plan G policy has the same standardized Medicare coverage as one that costs $96. 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 pricesYou may see Medicare Supplement Insurance plans priced in a few ways:
Some states require certain pricing for Medicare Supplement Insurance, so not all pricing methods are available in every state. Medigap discountsYou might be able to save on premiums by qualifying for a discount with some companies. Here are a few examples:
Sign up early for the lowest Medigap pricesTo get the best price and easiest enrollment experience, sign up for a Medigap plan during your Medigap open enrollment period. This period happens only once. It starts once you’re 65 and enrolled in Medicare Part B, and lasts for six months. (If you're still working after 65 and covered by a group employer plan that is deemed creditable coverage, your six-month period starts after you’ve ended active employment or no longer have that insurance.) Medigap policies are cheapest and easiest to get during this open enrollment period because insurance companies aren’t allowed to factor your health or medical history into your price. After the period ends, the prices may go up or you may be denied coverage due to your health status or medical history. If you have additional questions about Medicare, visit Medicare.gov or call 800-MEDICARE (800-633-4227, TTY 877-486-2048). What does a Medicare Supplement plan cost?The average cost of a Medicare Supplement plan is $163 per month in 2022. However, rates can vary widely from $50 to more than $400 per month.
How much does Medicare supplemental insurance cost per month?Cost of Medicare Supplement
For 2023, a Medicare Supplement plan (also called a Medigap plan) costs an average of $155 per month. However, costs will depend on two factors: the policy you choose and the pricing structure in your state.
What is the monthly Medicare premium for 2022?In 2022, the premium is either $274 or $499 each month ($278 or $506 in 2023), depending on how long you or your spouse worked and paid Medicare taxes. You also have to sign up for Part B to buy Part A. If you don't buy Part A when you're first eligible for Medicare (usually when you turn 65), you might pay a penalty.
What is the number one Medicare Supplement plan?By and large, Plan F is the most popular Medicare Supplement plan due to its coverage of more out-of-pocket Medicare costs than any other Medigap plan type.
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