“Medicare supplements vary in rate by carrier and plan choice. Not every carrier offers all plans,” says Brandy Corujo, partner of Cornerstone Insurance Group in Seattle. Policy prices for Medigap are set by the individual insurance companies selling them. Companies set their premium pricing in one of three ways:
- Community-rated: Premiums are the same regardless of age.
- Issue or entry age-rated: Premiums are cheaper if the policy is purchased at a younger age. Premiums do not increase with age.
- Attained-age-rated: Premiums are based on your age at the time of purchase. As you age, your premium increases.
Some factors that may also influence your rates include your location, gender, marital status and lifestyle (like if you smoke).
Medigap plans are purchased through a private insurance company, and you pay a monthly premium for the policy directly to the company. Medigap policies can be purchased from any insurance company licensed to sell one in your state, but available policies and prices will depend on your state. Medigap plans only cover one person, so married couples need to purchase separate policies.
Pro Tip
Medicare beneficiaries with income over a set amount are required to pay a monthly fee in addition to their Medicare Part B and Part D premiums called an income-related monthly adjustment amount, or IRMAA.
What Is the Least Expensive Medicare Supplement Plan?
The cost of Medigap monthly premiums varies depending on factors like the insurance company’s pricing policies and an individual’s age, sex and personal health history.
For example, a person living in North Carolina might expect to pay the following prices for various Medigap plans, based on their location:
Keep in mind, Medicare Supplement plans C, F, and F high deductible are no longer available to purchase if you turned 65 on or after January 1, 2020. They may be unavailable to some people under age 65 as well.