The average rate for Medicare Supplement Insurance (Medigap) Plan F in 2019 was $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 2021, and request a free, no-obligation plan comparison online to find the right plan for your budget.
Because Medicare Supplement Insurance plans are sold by private insurance companies, plan rates will vary from one market to the next.
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.
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.
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.
|Medicare Supplement Benefits||A||B||C1||D||F1||G||K||L||M||N|
|Part A coinsurance and hospital costs||✓||✓||✓||✓||✓||✓||✓||✓||✓||✓|
|Part B coinsurance or copayment||✓||✓||✓||✓||✓||✓||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. Plans C and F are not available to new beneficiaries who became eligible for Medicare on or after January 1, 2020.
2. Plans F and G also offer a high deductible plan which has an annual deductible of $2,370 in 2021. Once the annual deductible is met, the plan pays 100% of covered services for the rest of the year. The high deductible Plan F is not available to new beneficiaries who became eligible for Medicare on or after January 1, 2020.
3. Plan K has an out-of-pocket yearly limit of $6,220 in 2021. Plan L has an out-of-pocket yearly limit of $3,110 in 2021.
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 $50 for emergency room visits that don’t result in an inpatient admission.
View an image version of this table.
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.
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.
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.
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.
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 areaVisit MedicareSupplement.com
1 TZ Insurance Solutions LLC internal sales data, 2019. This data is based on the Medicare Supplement Insurance policies TZ Insurance Solutions LLC has sold. It is not a comprehensive national average of all available Medicare Supplement Insurance plan premiums.