Medicare Supplement (Medigap) plans require a separate monthly premium from Original Medicare. While this might seem like it could expensive, you’d be surprised how much money you save by turning 65!
What is a monthly premium?
A monthly premium is the amount you pay per month just to have your health insurance policy like Medicare or Medigap.
How much is Medicare’s monthly premium?
Original Medicare usually only charges for the Part B monthly premium of $174.70 (if you make over $91k per year, you’ll pay more).
For a rare few, if you or your spouse did not work enough qualifying quarters, you could also pay the Part A monthly premium of $505. Again, this is unlikely!
How much is MEDIGAP’s monthly premium?
Medigap’s monthly premium is not as straightforward as Original Medicare’s. There are several determining factors, such as: age, zip code and plan. This is in addition to Medicare’s Part B premium.
While Medigap plans are standardized throughout most of the United States (some states have their own Medigap rules), premium costs can vary significantly. The same plan $105 plan in California, could cost $250 in New York. The best way to see how much Medigap will cost you is by getting an instant quote. Just click the button below to get a price in less than 10 seconds.
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How much is Medigap’s annual cost?
The bulk of Medigap’s annual cost is the monthly premium as explained above. If you enroll in Medigap Plan G, you are also required to pay the Part B deductible ($240) once per calendar year for any non-preventive office visits. Those on Medigap G should expect very few out-of-pocket expenses for any Original Medicare-covered medical service beyond the Part B deductible.
Comparing Medigap and Under 65 individual health premiums
We know paying two premiums (Medicare Part B and Medigap) a month can seem pricey. However, when you compare that to the average premium for an individual health care plan for someone under 65 and the out-of-pocket costs, you can save up to $12,000 a year! So, don’t be intimidated by separate premiums.
Here’s a quick breakdown:
Annual Average Medigap costs:
- (Medigap G $143* per month + Medicare Part B Premium $170.10) x 12 months = $3,757.20
- $3,757.20 + Part B deductible =
- Total annual cost: roughly $4000
Annual under 65 individual health plan costs:
- Monthly premium $644.92** x 12 months = $7,739
- $7,739 + Deductible, copays and coinsurance $8,700***
- Total annual cost: $16,000+
*Medigap Plan G premium for a female aged 65 in zip code 90046
**Average national individual insurance premium
***Maximum out-of-pocket maximum for healthcare exchange plans
Next Steps
Now that you see that Medigap plans aren’t that expensive in the long run, get a Medigap quote or call one of our licensed agents at 800-930-7956.