Average Cost of Medicare Supplement Insurance

In this article...
  • Our expert review outlines how much Medicare Supplement Insurance (Medigap) plans cost and some of the factors that can determine the price of a plan.

Medicare Supplement Insurance, or Medigap, helps cover the cost of some of the out-of-pocket expenses required by Original Medicare (Medicare Parts A and B) such as deductibles, copayments, coinsurance and more. 

Because the whole purpose of supplemental insurance is to help you save money, it’s natural to wonder how much these plans cost so you can get a better understanding of their true value. 

You can compare Medicare Supplement plans and how much they cost online for free. Getting a free Medicare Supplement plan comparison is a great way to compare the plans available where you live to find out their costs and find the right plan for your budget.

Determining a true average cost is not easy, but Medicare Supplement Insurance plans can cost anywhere between $50 and $500 per month depending on a number of factors. The chart below shows the range of monthly premiums for some of the most popular Medigap plans for a 65-year-old non-smoking male in several different parts of the country. 

*The quotes listed below represent just a small sample of the Medicare Supplement plans that may be available in the following areas.

Location Plan A Plan C Plan F Plan G Plan K Plan L Plan N

Los Angeles, CA

$97 - $268

$178 - $394

$171 - $396

$128 - $315

$55 - $124

$100 - $221

$98 - $266

Dallas, TX

$109 - $607

$135 - $443

$139 - $445

$109 - $422

$55 - $149

$78 - $265

$87 - $337

Cleveland, OH

$78 - $366

$145 - $414

$148 - $417

$114 - $401

$45 - $128

$82 - $248

$101 - $356

Topeka, KS

$105 - $373

$143 - $421

$137 - $457

$119 - $406

$58 - $136

$77 - $244

$92 - $347

Albany, NY

$139 - $263

$258 - $414

$242 - $414

$189 - $378

$66 - $141

$139 - $202

$154 - $216

Medicare Supplement Insurance Cost Factors

As you can see from the chart above, the cost of a Medicare Supplement Insurance plan can vary quite significantly. And there are several factors that can play a role in determining a plan’s price. 

Plan Coverage 

One big factor in the cost of a Medicare Supplement Insurance plan is the level of coverage provided. There are nine benefit areas covered by the 10 standardized Medigap insurance plans that are available in most states. The coverage of each plan is standardized by the federal government and remains consistent across every carrier in every state.

The chart below shows the coverage provided by each Medicare Supplement Insurance plan. 

Medicare Supplement Insurance Plans 2021
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.


Plans offering more coverage can sometimes be more expensive than plans with more basic coverage. 

Carrier

Medicare Supplement Insurance is sold by private insurance companies that set their own plan prices. In the same way that the same pair of shoes can cost much different in one store compared to another, the same Medigap plan can cost a different amount between two insurance companies. 

Location

The cost of living can be significantly different in one market compared to another. It’s not uncommon for a product to cost more in a large city than it does in a more rural setting, and the same can be said for Medicare Supplement Insurance plans.

You may also find that areas with more plan options may have lower costs because of the increased competition. 

Enrollment Time

If you apply for a Medicare Supplement Insurance plan during your Medigap Open Enrollment Period, you will have guaranteed issue rights. That means an insurance company is not allowed to use medical underwriting to charge you a higher rate for your coverage.

However, if you enroll outside of this period or during any other time during which you don't have a guaranteed issue right, you are no longer protected and carriers may charge you a higher rate because of your health.

Other reasons you might be eligible for guaranteed issue rights include if you move to an area that isn't served by your previous plan, if your insurance company stops offering your plan or if you otherwise lose coverage through no fault of your own.

Pricing Structure

Medicare Supplement Insurance companies typically price their plans in one of three ways according to age.

  • They might charge everyone the same rate regardless of age. This is called a community rated plan.

  • They might base your rate on the age at which you joined the plan. This is called an issue-age rated plan.

  • Some plans might increase your rate for every year that you age while enrolled in the plan. This is called an attained-age rated plan.

Discounts

It’s not uncommon for insurance companies to offer discounts on Medicare Supplement Insurance plans. Discounts are often available for non-smokers, married couples and other criteria. Be sure to ask your insurance agent or insurance carrier about any potential discounts that may be available.

Gender

Because women have a longer life expectancy, they are sometimes granted lower premiums for Medicare Supplement Insurance plans.  

Additional Costs to Know

There are some additional things to know about the costs associated with a Medicare Supplement Insurance plan. 

  • Two plans, Plan F and Plan G, have a high-deductible option available in some areas. The high-deductible version of these plans has a lower monthly premium than the standard version in exchange for a deductible. The plan’s coverage does not begin until the deductible has been satisfied. The deductible for these plans in 2021 is $2,370 for the year.

  • Two plans, Plan K and Plan L, feature an annual out-of-pocket limit. Once the beneficiary has reached the out-of-pocket limit for covered services, the plan pays 100% of the cost of covered care for the remainder of the year. The 2021 out-of-pocket limits are $6,220 for Plan K and $3,110 for Plan L. 

  • While Plan N covers 100% of the cost of the Medicare Part B coinsurance, the plan requires a copayment of up to $20 for certain office visits and up to $50 for emergency room visits that do not result in an inpatient admission. 

Compare Medicare Supplement Plan Costs Near You

The easiest way to collect Medicare Supplement Insurance plan costs is to contact a licensed insurance agent who can gather up price quotes for multiple carriers selling Medigap plans in your location. You can also compare plans for free online.

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