The average rate for Medicare Supplement Insurance (Medigap) Plan F in 2019 is $169 per month.1 So what does this mean for Medicare beneficiaries who are interested in finding a Medigap plan?
While Medigap plan benefits are standardized in most states (which means that – for example – Medicare Plan F in North Carolina offers the same benefits as Plan F in Florida), Medigap plan premium rates can vary depending on the insurance company.
Learn how Medicare Supplement Insurance rates are determined in 2020, and request a free, no-obligation plan comparison online to find the right plan for your budget.
How much will Medicare Supplement Insurance cost in my state?
Because Medicare Supplement Insurance plans are sold by private insurance companies, plan rates will vary from one market to the next.
In 2018, the average monthly premium rate of Medigap Plan G in New York was $304 per month. In the same year, the average monthly cost of Medigap Plan G in Iowa was only $102.1
The difference in Medigap rates from one state to another can vary widely, similar to how the cost of a gallon of gas can differ greatly from one state to another.
Learn more about Medicare Supplement Insurance rates in your state.
Medigap rates can vary based on carrier
Original Medicare (Part A and Part B) premiums are standardized by the federal government. Private insurance companies that offer Medicare Supplement Insurance plans, however, are free to set their own rates.
How a carrier rates (prices) its plans, inflation and other factors can cause premiums to change over time.
Certain Medigap plans that offer more benefits may cost more
Each type of Medicare Supplement Insurance plan offers a different combination of benefits standardized by the federal government. This means that rates may vary depending on the Medigap plan type.
Generally speaking, plans that offer more standardized benefits may cost more than plans with fewer benefits.
The chart below can help you compare Medigap plans in 2019. (Note: Medigap plans are standardized differently in Massachusetts, Minnesota and Wisconsin.)
| Medicare Supplement Benefits | A | B | C | D | F1 | G | K2 | L3 | M | N4 |
| Part A co-insurance and hospital costs | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Part B co-insurance or co-payment | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 50% | 75% | ✓ | ✓ |
| First 3 pints of blood | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 50% | 75% | ✓ | ✓ |
| Part A hospice care co-insurance or co-payment | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 50% | 75% | ✓ | ✓ |
| Co-insurance for skilled nursing facility | ✓ | ✓ | ✓ | ✓ | 50% | 75% | ✓ | ✓ | ||
| Medicare Part A deductible | ✓ | ✓ | ✓ | ✓ | ✓ | 50% | 75% | 50% | ✓ | |
| Medicare Part B deductible | ✓ | ✓ | ||||||||
| Medicare Part B excess charges | ✓ | ✓ | ||||||||
| Foreign travel emergency | 80% | 80% | 80% | 80% | 80% | 80% | ||||
| 1. Plan F offers a high-deductible plan. This plan requires you to pay a $2,300 deductible in 2019 before it covers anything. 2. Plan K has an out-of-pocket yearly limit of $5,560 in 2019. After you pay the out-of-pocket yearly limit and yearly Part B deductible, it pays 100% of covered services for the rest of the calendar year. 3. Plan L has an out-of-pocket yearly limit of $2,780 in 2019. After you pay the out-of-pocket yearly limit and yearly Part B deductible, it pays 100% of covered services for the rest of the calendar year. 4. Plan N pays 100% of the Part B coinsurance, except for a copayment of up to $20 for some office visits and up to a $50 copayment for emergency room visits that don’t result in an inpatient admission. View an image version of this table. |
||||||||||
Medical underwriting could affect your Medigap plan rates
If you apply for a Medicare Supplement Insurance plan after your six-month Medigap Open Enrollment Period (OEP), you may be subject to medical underwriting.
- Your Medigap Open Enrollment Period starts as soon as you are at least 65 years old and enrolled in Medicare Part B.
- During the six months of your Medigap OEP, insurance companies cannot deny you a Medigap plan or charge you higher plan premiums based on your health.
But outside of your Medigap OEP, an insurance company reserves the right to determine your Medigap rates based on your health — unless you qualify for a guaranteed issue right.
Beneficiaries with certain health conditions might face higher rates because they are deemed to be riskier to insure, or they may be denied a Medigap plan altogether.
Insurance companies use different pricing structures to determine rates
There are three different pricing models that insurance companies can use to determine how your Medicare Supplement Insurance plan rates may increase in the future.
Each type of pricing system can produce a different rate for current and incoming plan members.
- Community-rated plans charge the same rate for every plan member, regardless of age. For example, a 75-year-old Medigap beneficiary with a community-rated plan will pay the same rate as a 65-year-old beneficiary with the same plan.
- Issue-age-rated plans have rates based on the age at which you purchased the plan. Your premium rate will be fixed and it won’t change as you age. While your initial Medigap rate could be higher than a community-rated plan, it could potentially cost less in the long term.
- Attained-age-rated plans have rates that increase as you age. As you get older, your Medigap rate will gradually go up.
Some insurance companies may offer Medigap plan discounts for women, non-smokers, married couples, those who pay their premium for the entire year and more.
Be sure to ask your plan provider if they offer any discounts before you sign up for a Medigap plan.
Medigap premiums may increase over time due to other factors, such as inflation.
Compare Medicare Supplement rates in your area
A licensed insurance agent can help you compare the Medicare Supplement Insurance plans that are available where you live, including the plan rates.
Find a Medigap plans in your area
Visit MedicareSupplement.com
