If you have Original Medicare and want to reduce out-of-pocket costs like co-pays, deductibles, and coinsurance, you may want to buy a Medicare Supplement plan, also known as Medigap. Depending on where you live, you have up to 10 Medicare supplement plans to choose from plus two high-deductible options. Each plan is identified by a letter, and benefits for each letter plan are standardized in most states.
The cost of Medicare Supplement insurance is lowest when you’re first eligible for coverage—during your six-month Medigap open enrollment period—because insurance companies aren’t allowed to use medical underwriting to determine your premium. In other words, you’ll pay the same rate as someone in excellent health, even if you have health problems. But costs can still vary widely depending on the plan you choose, the company you go with, and your location. Read on to see how much Medicare supplement plans cost and how you can reduce your Medigap premium.
Medicare Supplement Costs and Benefits
To understand what you’re paying for, it’s important to know what the different lettered Medigap plans cover. All Medicare supplement plans cover some or all of:
- Your Part B coinsurance
- Blood (up to three pints)
- Part A hospice care
- Part A coinsurance and hospital costs for an extra 365 days once you’ve exhausted your Original Medicare benefits
Some plans also cover skilled nursing care, your Part A and B deductibles, Part B excess charges, and foreign travel emergency care. Only Plans K and L have an annual out-of-pocket limit. For 2024, the out-of-pocket limits are $7,060 and $3,530, respectively.
The cost of Medicare supplemental insurance varies by plan type—plans with the most coverage have the highest premiums.
You can’t get plans C or F if you became eligible for Medicare during or after 2020.
Medicare Supplement Cost Comparison Chart
The following price ranges are for a 65-year-old male nonsmoker living in Florida ZIP code 33012.
| Medigap Plan Type | Medigap Cost Range (monthly) |
|---|---|
| Medicare Supplement Plan A | $166 - $345 |
| Medicare Supplement Plan B | $218 - $327 |
| Medicare Supplement Plan C | $294 - $364 |
| Medicare Supplement Plan D | $290 - $339 |
| Medicare Supplement Plan F | $254 - $461 |
| Medicare Supplement High-Deductible Plan F | $64 - $156 |
| Medicare Supplement Plan G | $237 - $409 |
| Medicare Supplement High-Deductible Plan G | $64 - $144 |
| Medicare Supplement Plan K | $82 - $162 |
| Medicare Supplement Plan L | $182 - $212 |
| Medicare Supplement Plan M | $268 - $268 |
| Medicare Supplement Plan N | $191 - $312 |
Source: Medicare.gov Medicare plan finder
High-Deductible Plan F and High-Deductible Plan G have the lowest rates, starting at $64 per month. Regular Plan F (the plan with the most coverage) costs as much as $461 a month.
Factors Influencing Medigap Cost
In addition to the type of Medigap plan you choose, gender, health status, location, and age all play a role in determining your Medigap cost. But insurance companies also determine rates according to one of three structures:
- Community-rated: The insurer charges all people who have the same type of policy the same premium. Age does not impact your premium, though premiums may increase due to inflation and other factors. For example, if you buy a policy at age 65 at the same time as a 75-year-old buys one, you’d pay the same premium.
- Issue-age-rated: The younger you are, the lower your premium is. Once you have your plan, premiums won’t go up because of your age.
- Attained-age-rated: With this structure, your premium may be relatively low at first, but increases every year.
Medigap Cost Comparison Chart by Company
Medigap supplement plan costs below are for a 65-year-old male nonsmoker in Florida. You can see that some costs vary widely even for the same plan type. When getting Medigap quotes, ask each insurance company how it sets rates.
Make sure you know if your premium will increase as you age and if your current age influences the cost of your premium. It may be worth paying more now for a level premium than having it increase every year.
| AARP/United Healthcare | BCBS (Florida Blue) | Mutual of Omaha | Humana | State Farm | |
| Plan A | $217 | $228 | $288 | $287 | $242 |
| Plan B | $263 | $271 | N/A | N/A | N/A |
| Plan C | $306 | $312 | N/A | N/A | N/A |
| Plan D | N/A | $290 | N/A | N/A | $296 |
| Plan F | $307 | $317 | $395 | $442 | $325 |
| Plan F High-Deductible | N/A | N/A | N/A | $101 | N/A |
| Plan G | $251 | $279 | $313 | $314 | $296 |
| Plan G High-Deductible | N/A | N/A | $119 | $101 | N/A |
| Plan K | $82 | $107 | N/A | N/A | N/A |
| Plan L | $183 | $182 | N/A | N/A | N/A |
| Plan M | N/A | $268 | N/A | N/A | N/A |
| Plan N | $215 | $230 | $228 | $236 | $229 |
Source: Medicare.gov Medicare plan finder
Compare Medigap quotes from multiple Medicare supplement companies with a licensed Medicare representative before buying.
How to Save Money on Medicare Supplement Insurance
- Buy during Medigap open enrollment: One of the best ways to save money on your Medigap premium is to buy a Medigap policy during your six-month Medigap open enrollment period. It starts the first day of the month in which you’re 65 or older and enrolled in Part B. Insurance companies can’t consider your health when setting your premium during this period.
- Choose a company that won’t increase your premium: By going with an insurance company that uses issue-age-rating to set your premium, you can expect your premium to stay level year over year (or at least, not to increase because of your age). Community-rated Medigap policies may be a good choice for older individuals who’ve waited to apply for Medicare supplemental insurance.
- Ask about a household discount: If you and a member of your household, such as a spouse, are both enrolled, you may be eligible for a discount.
- Choose high-deductible Plan F or Plan G: If you can cover the $2,800 deductible in 2024, both plans offer a wide array of benefits. Plan F is the most comprehensive, but you can't apply for it unless you became eligible for Medicare on or before Jan. 1, 2020. Medigap high-deductible Plan G offers everything that high-deductible Plan F does, except for covering your Part B deductible.
- Choose a Medicare Select policy: If your state offers them, you may be able to choose a more restrictive Medigap policy that requires you to use in-network providers. Medicare Select policies are available for all letter-plan types and generally cost less than regular Medigap plans.
What Is Medigap?
Medigap is supplemental health insurance for enrollees in Original Medicare. It helps pay out-of-pocket costs, including the Part A and Part B deductibles, and coinsurance for skilled nursing care and hospice care, among others. The extent of coverage depends on the type of Medigap plan you get. There are 10 different types available, and benefits are standardized across plans, regardless of which insurance company you buy through.
What Is the Best Supplemental Health Insurance for Medicare?
The most comprehensive Medicare supplement plan is Plan F. It offers the broadest coverage, and is one of only two plans to cover the Part B deductible and Part B excess charges. If you're not eligible for Plan F, the next most comprehensive plan is Plan G. The best Medicare supplement plan for you depends on the extent of coverage you want, how often you use your Medicare benefits, and how much you can afford.
What Does Medigap Cover?
Medigap can cover your Part B coinsurance, up to three pints of blood, Part A hospice care, Part A coinsurance and hospital costs for an extra 365 days once you’ve exhausted your Original Medicare benefits, Part B excess charges, skilled nursing facility coinsurance, and foreign travel exchange. Different Medigap plan types are available with different levels of benefits; the best Medigap plans provide the coverage you need at an affordable price.
Article Sources
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CMS.gov. "K & L Out-of-Pocket Limits Announcements."
Medicare.gov. “How To Compare Medigap Policies.”
Medicare.gov. “Cost of Medigap Policies.”
Centers for Medicare and Medicaid Services. "Deductible Amount for Medigap High Deductible Options F, G & J for Calendar Year 2024."
