The Average Cost of Medicare Supplement Insurance Plans: Ranked by Age

Several factors can affect the cost of a Medicare Supplement Insurance (Medigap) plan in 2020, such as gender, smoking status and where you live.

Another factor that affects Medigap plan costs is your age.

In this guide, we break down the average costs for Medigap Plan F and Plan G by age, showing the average premiums for beneficiaries of each plan from age 64 to age 85.

How much does the average Medicare Supplement Plan F cost?

The chart below shows the average monthly premium for Medigap Plan F in 2018, ranked by age.¹

Is Medicare Supplement Insurance Plan F worth it?

Medigap Plan F covers many out-of-pocket Medicare costs, such as the Medicare Part A and Part B deductibles and Part B coinsurance or copayment.

In fact, Plan F covers more standardized out-of-pocket Medicare costs than any other Medigap plan. It covers all 9 of the standardized Medigap benefits a plan may offer.

• Plan F is by far the most popular of the 10 standardized Medicare Supplement Insurance plans that are available in most states.
  
  55 percent of all Medigap beneficiaries are enrolled in Plan F.²
  
  
• In addition to being the most popular, Plan F was also the most widely available Medigap plan in 2017.
  
  85 percent of Medicare Supplement Insurance companies sold Medigap Plan F in 2017.²

How much does the average Medicare Supplement Plan G cost?

You can use this chart to see the average monthly premium for Medigap Plan G in 2018, ranked by age.¹

Is Medicare Supplement Insurance Plan G better than Plan F?

Medigap Plan G covers all of the same out-of-pocket Medicare costs than Plan F covers, except for the Medicare Part B deductible.

In 2020, the Part B deductible is $198 per year. This $198 annual deductible equals $16.50 per month.

This means that if you find a Medigap Plan G option that costs only $16.50 more per month (or less) than Plan F, it might be a better value over the course of the year than Plan F if you meet the Part B deductible.

Plan G is the second-most popular Medigap plan. It was also the fastest-growing Medigap plan in 2017, with a 62 percent increase in enrollment from 2016 to 2017.²

What can affect the average cost of Medicare Supplement Insurance?

The average cost of a Medicare Supplement Insurance can be influenced by a number of factors.

• Location
  2020 Medigap plan costs can vary quite a bit from one state to another. The cost of a Medicare Supplement Insurance plan can vary based on location in the same way that a gallon of gas or milk can.
  
  
• Insurance carrier
  Medigap plans are sold by private Medicare Supplement Insurance companies. These companies can set their own premium rates.
  
  A licensed insurance agent can help you compare plans from several different Medigap plan providers.
  
  
• Benefits
  Because Plan F and Plan G provide more benefits than most other types of Medigap plans, Plan F and Plan G may have higher monthly premiums than other types of Medigap plans in some areas.

Other factors such as age, gender, smoking status and health can also affect Medigap plan rates.

When should I buy a Medicare Supplement Insurance Plan?

A good time to buy Medicare Supplement Insurance is during your Medigap Open Enrollment Period (OEP).

Your Medigap Open Enrollment Period begins as soon as you are:

• At least 65 years old
• AND enrolled in Medicare Part B

During your Medigap OEP, Medicare Supplement Insurance companies can’t use your health to determine your eligibility for a Medigap plan or to charge you higher plan premiums.

Outside of your Medigap Open Enrollment Period, you may have what are called “guaranteed issue rights.”

Having a guaranteed issue right means Medicare Supplement Insurance companies cannot perform any medical underwriting in determining your Medigap premium. In other words, you cannot be charged more for a plan because of your health. Your choice of plan type may be limited based on the guaranteed issue right you have.

There are several circumstances that could qualify you for a Medigap guaranteed issue right.

Explore Medigap plans in 2020

You can get help exploring Medicare Supplement Insurance plans that may be available where you live. A licensed insurance agent can help you find out the cost of Medigap plans in your area in 2020.