Medigap insurance—also known as Medicare Supplement Insurance—helps cover the out-of-pocket costs left behind by Original Medicare (Medicare Part A and Medicare Part B).
These plans are standardized by the federal government, meaning a Plan G from one company provides the same benefits as a Plan G from another. However, the cost can vary widely depending on your location, age, and gender.
This guide explains how Medigap pricing works, what factors affect your premiums, and how you can find the most competitive rates available.
Note: MedicareService.net is an independent platform that connects users with licensed insurance agents and providers. We do not sell insurance directly.
What Is Medigap Insurance?
Medigap is designed to “fill the gaps” in traditional Medicare coverage—expenses such as deductibles, coinsurance, and copayments that you’d otherwise pay out of pocket. While Medicare covers about 80% of approved healthcare costs, a Medigap plan helps manage the remaining 20%, offering predictable expenses and peace of mind.
There are 10 standardized Medigap plans (A–N) available in most states. Although the coverage is the same across providers, premiums can vary, which makes comparing rates essential before enrolling.
How Medigap Pricing Works
Even though coverage is standardized, pricing is not. For example, a Plan G from one company may cost $100 more per month than the exact same plan from another insurer.
This is because companies use different rating systems to determine premiums:
- Community-rated (no-age-rated): Everyone pays the same monthly premium, regardless of age.
- Issue-age-rated: Premiums are based on the age you are when you buy the plan.
- Attained-age-rated: Premiums start lower when you’re younger and increase as you age.
Knowing which pricing structure your policy uses can help you make a smart long-term financial decision.
Average Medigap Insurance Costs by City
Here’s a look at average monthly premiums for the most popular Medigap plans—Plan G, Plan N, and High Deductible Plan G (HDG)—for a 65-year-old female.
City: Grand Rapids, MI
Plan G: $97.43
Plan N: $76.92
HDG: $31.91
City: Evansville, IN
Plan G: $97.50
Plan N: $75.92
HDG: $30.35
City: Trenton, NJ
Plan G: $127.58
Plan N: $96.46
HDG: $47.06
City: Seattle, WA
Plan G: $184.84
Plan N: $145.40
HDG: $53.76
City: Prescott, AZ
Plan G: $104.58
Plan N: $80.92
HDG: $36.69
City: Topeka, KS
Plan G: $106.58
Plan N: $82.17
HDG: $32.33
City: Denver, CO
Plan G: $118.00
Plan N: $88.13
HDG: $46.61
Rates vary based on regional healthcare costs, company pricing structures, and inflation trends. It’s a good idea to compare plans annually or every two years to ensure you’re still getting the best deal.
What Factors Affect Your Medigap Premium?
Several factors determine how much you’ll pay for Medigap coverage:
1. Age
Younger enrollees usually pay less. If your plan uses “attained-age” pricing, your rates will increase as you age.
2. Gender
Women often have slightly lower premiums due to longer life expectancy and general health trends.
3. Tobacco Use
Smoking or tobacco use can significantly raise your monthly premiums.
4. Location
Your ZIP code affects your rate. Urban areas like Seattle typically cost more than smaller cities like Topeka or Prescott.
5. Discounts
Many providers offer household or autopay discounts that can lower your costs.
Also Read: Tips for Choosing the Right Medigap Plans
How to Compare Medigap Plans
Although each plan type (like Plan G or Plan N) offers identical benefits no matter who sells it, prices and service levels can vary. Here’s how to compare effectively:
- Check multiple providers. Don’t assume the biggest name has the lowest rate.
- Review rate history. Some companies raise premiums more frequently than others.
- Ask about discounts. Household and loyalty discounts can save you up to 10% or more.
- Work with a licensed Medicare agent. They can help you compare plans side-by-side and find the right balance of coverage and cost.
For a deeper look at comparing Medigap plans, check out How to Compare Medicare Supplement Plans.
Why You Should Review Medigap Rates Regularly
Even if you already have a Medigap plan, it’s smart to review your rates annually. Insurance companies adjust premiums over time, and new providers may offer lower prices for the same coverage.
By comparing quotes regularly, you could save hundreds each year while keeping the same benefits.
Final Thoughts
Medigap insurance is one of the most effective ways to reduce your out-of-pocket costs under Original Medicare. Understanding how pricing works—and comparing options from multiple providers—helps ensure you’re getting the best value for your coverage.
Remember, MedicareService.net is not an insurance provider. We’re a platform that connects users with licensed agents and insurance companies to help compare Medigap options quickly and easily.
Need Help Comparing Plans?
Licensed Medicare experts can help you compare top-rated carriers, find affordable rates, and guide you through enrollment.
Call 844-731-6614 or visit MedicareService.net to start your comparison today.