The Ultimate Guide to Medigap Costs and Premiums

You may often see the statement that Medigap costs typically range from about $50 to $350 a month but that’s not really helpful. Medigap monthly premiums are usually based on many factors such as: your state, your age, and which Medigap plan you chose (and a few more). This guide covers what the average Medigap policyholder pays today, the specific factors that raise or lower your premium, and how to compare plans without overpaying.

How Much Does Medigap Cost on Average?

Medicare Supplement insurance, Medigap’s official name, is priced by plan letter and carrier rather than by your health at the time of enrollment, as long as you enroll during your Medigap Open Enrollment Period. The most complete nationwide numbers, from the Kaiser Family Foundation’s analysis of NAIC data, put the average premium across all Medigap plans around $200 but Plan G and Plan F together account for roughly three-quarters of all policyholders, with Plan N a distant third.

Source: KFF, Key Facts About Medigap Enrollment and Premiums

Averages are a starting point, not a quote. Two people in the same state, same age, applying for the same Plan G, can see premiums $50 or more apart depending purely on which carrier they choose.

THE BEST WAY TO SEE HOW MUCH MEDIGAP COST IS TO GET AN INSTANT ANONYMOUS QUOTE!!!

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💡 Tip: A Medigap quote on Senior65.com takes less than 30 seconds and shows every carrier available in your zip code side by side, so you can see exactly where your state’s average falls before you commit to a plan.

What Factors Actually Change Your Medigap Premium?

Six things move the price of an otherwise identical plan:

• State. Regulations, cost of local care, and the size of each carrier’s risk pool vary widely. New York and Connecticut consistently price higher than the national average; Hawaii, New Mexico, and D.C. price lower.
• Insurance company. Every carrier sets its own rate for the same standardized benefits, based on its claims experience, administrative costs, and how aggressively it wants to grow in your state.
• Age. Most policies get more expensive as you get older, though how much depends on the rating method (more on that below).
• Tobacco use. Smokers typically pay roughly 10% more than non-smokers for the same plan. If you are applying in your initial open enrollment period, many states block insurance carriers from charging Smokers more.
• Gender. Some carriers price men and women differently for the same plan; it isn’t universal, but it’s common enough to check when comparing quotes.
• Available discounts. Household discounts, autopay discounts, and new-to-Medicare discounts can meaningfully lower what you’d otherwise pay, and they stack differently by carrier. See all the discounts here

Carriers also price policies using one of three rating methods (community-rated, issue-age-rated, or attained-age-rated), but this isn’t as big a driver of cost differences as it might seem. All three methods can still raise your rate every year through ordinary inflation and claims-trend increases, and that effect generally matters more than which method your carrier uses. For a full breakdown see why the same Medigap Plan G costs more from one company than another.

What Medigap Actually Saves You

The premium is only half the cost picture. Original Medicare leaves real gaps:

• $1,736 Part A deductible every benefit period,
• $283 Part B deductible each year,
• $202.90 standard Part B premium,
• 20% coinsurance on most Part B services with no annual cap.

A single extended hospital stay can run past the Part A deductible multiple times if you’re readmitted, and skilled nursing coinsurance kicks in at $$217 a day starting on day 21. A comprehensive plan like Plan G picks up nearly all of that, so the monthly premium is buying protection against costs that can otherwise run into the tens of thousands.

📌 Note: If you’re choosing between plans, Medigap and Medicare Advantage handle cost-sharing very differently, and it’s worth understanding both before you decide which direction fits your situation.

Do Medigap Premiums Go Up Every Year?

Almost always, yes, though not for one single reason. Attained-age policies (which the majority of Medigap plans fall under) increase as you get older. As you “attain” a new age, you “attain” a new price.

Separately, insurance carriers can (and do) request state-approved rate actions each year. The inflation rate increases are the largest reason why you will see your Medigap price go up each year. Many insurance providers will only increase your rate one time a year but some carriers will give you one increase when you get older and another later in the same year for the inflation rate action.

Your price will NEVER go up just because you have had lots of claims. Your personal health will not factor into the decisions to increase premiums. Medigap is priced at the group level, not on your individual usage, so a bad health year doesn’t trigger a personal rate hike the way it might with car insurance.

Insurers must give 30 to 60 days’ notice before either kind of increase takes effect, and there’s no federal cap on how often or how much a rate can rise. A closer look along with how to read your renewal notice, is in our Senior65.com article can Medigap premiums increase and why are Medigap premiums increasing so much.

Are Medigap Premiums Based on Income?

No. Unlike Medicare Part B and Part D, where higher earners pay an income-related surcharge on top of the standard premium, Medigap premiums are the same regardless of what you earn. Your Medigap price depends on your plan, carrier, state, age, and the other factors above, not your tax return. If you want to understand how income does affect your other Medicare costs, see are Medigap premiums based on income and check Medicare.gov for the current income brackets. That’s a Part B and Part D question, not something Senior65 prices or enrolls you in.

Can Smoking Raise Your Medigap Premium?

Yes, Medigap carriers typically ask about tobacco use in the past 6 months to 2 years and charge smokers roughly 10% more for identical coverage. That surcharge usually doesn’t apply during your Initial Enrollment Period in most states or during a guaranteed-issue right (losing employer coverage, a Medicare Advantage plan leaving your area, and similar events). More detail is in can Medigap charge you more if you smoke.

Is Medigap Tax-Deductible?

Sometimes. Medigap premiums count as a medical expense, and the IRS lets you deduct medical expenses that exceed 7.5% of your adjusted gross income if you itemize. Self-employed people may be able to deduct premiums differently, outside that itemization threshold. Whether it actually helps your specific return depends on your total medical expenses, your income, and how you file, so this isn’t something to plan around without checking with a tax professional. Senior65 doesn’t provide tax advice; the full rundown of what does and doesn’t qualify is in are Medigap premiums tax-deductible.

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What If You Can’t Afford Plan G?

Plan G isn’t the only comprehensive option, and it isn’t always the cheapest way to get comparable protection. High Deductible Plan G covers the same benefits as standard Plan G once you’ve met a $$2,960 annual deductible, and the lower premium often makes it the better deal for people who don’t expect frequent care. Plan N costs less than Plan G every month in exchange for small copays ($20 for most doctor visits, up to $50 for an ER visit that doesn’t result in admission) and limited exposure to Part B excess charges. Stacking a household, autopay, or new-to-Medicare discount on top of either option can close more of the gap. The full comparison, including who each option actually fits, is in can’t afford Medigap Plan G.

The cheapest plan on paper isn’t automatically the best value. Plan A, for example, usually has the lowest premium of the ten standardized plans, but it skips coverage for skilled nursing facility care, foreign travel emergencies, and Part B excess charges, gaps that can cost far more than the monthly savings if you ever need them. Why not pick the cheapest Medigap plan walks through where that trade-off tends to bite.

How to Get the Best Price on Your Medigap Plan

• Compare multiple carriers for the same plan letter. The coverage is federally standardized; the price is not.
• Ask about every discount available (household, autopay, new-to-Medicare) before you enroll, not after.
• Weigh Plan N or High Deductible Plan G against standard Plan G if the premium gap matters more to you than the copays.
• Apply for a Medigap plan during your Initial Enrollment Period or a guaranteed-issue window when possible, since you’ll get the best rate available without medical underwriting.
• If you’re outside those windows, you can still apply to switch through medical underwriting at any time. Approval is possible even with some pre-existing conditions, though it’s never guaranteed, and the Medigap Underwriting Checker gives you a quick read on your odds before you apply. Some states also offer birthday rule or annual switching windows that let you move to a cheaper plan from the same or a lower letter without underwriting.

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📌 Note: Community-rated plans, where everyone pays the same regardless of age, are worth a second look before assuming they’re always cheaper. Many still offer disappearing discounts to younger enrollees, so in practice they can end up behaving a lot like attained-age pricing over time.

Get Your Actual Price, Not Just an Average

Averages tell you what a typical policyholder pays. They can’t tell you what you’ll pay, because that depends on where you live, which carrier you pick, and which discounts you qualify for. There’s never a fee to work with us, and by law no one can offer you a lower price on the exact same plan, so comparing through Senior65 costs nothing and can only save you money. Get a free quote to see every carrier available to you. Call 800-930-7956 if you’d like help going through the options.

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