Medigap premiums are not based on income. While some other Medicare products have pricing based on how much money you make, Medigap never charges you more if you make a lot of money.

Seniors with high incomes will not pay a higher Medigap premium.

How do they determine Medigap premiums if they are not based on how much money you make? 

Medigap plan pricing is generally determined by factors such as your age, location, gender, and the type of Medigap plan selected. If you apply outside of your initial open enrollment, you could be charged more for tobacco use or preexisting conditions. Premiums for Medigap policies can vary greatly from one insurance company to another and can change over time, so it is important to compare prices. You can get an instant quote here: 

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Are Medicare Advantage premiums based on Income?

Medicare Advantage plans, by themself, cannot charge individuals more based on their income. The premium for a Medicare Advantage policy is determined by the plan itself and may be influenced by factors such as the individual’s age, location, gender, and tobacco use. All individuals with Medicare, regardless of their income, are eligible to enroll in a Medicare Advantage plan. 

However, there is a “catch” as explained below:

If you purchase a Medicare Advantage with Prescription Drug (MAPD) coverage you can be charged more for the drug portion based on your income as part of IRMAA. IRMAA is an acronym that stands for “Income-Related Monthly Adjustment Amount” IRMAA is an extra charge added to the monthly premium for Medicare Part D based on the enrollee’s modified adjusted gross income (MAGI) as reported on their tax return from two years prior. IRMAA is a way for higher-income beneficiaries to contribute more to the cost of their Medicare coverage. Increase income-related premiums due to IRMAA apply whether you have an MAPD plan or a stand-alone Medicare Part D prescription drug plan. IRMAA also applies to Medicare Part B premiums.


Recap on Medicare insurance premiums based on how much money you make.

High-income individuals may pay more for Medicare Part B, Medicare Part D and/or an MAPD plan due to IRMAA but will never pay more for Medigap. To learn more about income-related costs due to IRMAA, visit our Medicare fees page. To see how much Medigap premiums are in your area cost, give us a call or get a 30-second quote here