Medigap insurance premiums vary significantly across the United States, with monthly costs ranging from $50 to over $400 depending on your plan choice and location.
At Dave Silver Insurance, we see clients struggle with understanding the average cost of Medigap insurance and what drives these price differences. Your age, health status, and chosen insurance company all play major roles in determining your final premium.
What Do Different Medigap Plans Actually Cost?
Plan G dominates the Medigap market with 39% of all policyholders, and the numbers reveal why. Kaiser Family Foundation data shows Plan G averages $164 monthly nationwide, ranging from $140 to $236. Plan F, which new Medicare beneficiaries cannot purchase, costs significantly more at $274 monthly on average. The price difference makes Plan G the clear winner for most people who seek comprehensive coverage without premium prices for grandfathered benefits.
Budget-Friendly Plans Come With Trade-offs
Plan K offers the lowest entry point at just $77 monthly, but this rock-bottom price includes a significant catch. You pay 50% coinsurance for most covered services, which makes it suitable only for those who rarely use medical services.
Plan N provides a middle ground with copayments for doctor visits and emergency room trips, though specific premium data varies widely by location and insurer. High-deductible Plan G presents an option at approximately $44 monthly, but you must pay the full $2,870 deductible in 2025 before benefits activate.
Geographic Location Drives Major Price Differences
Florida demonstrates extreme premium variations, with Plan F at $248 for 65-year-old males and Plan G at $183 for females of the same age. These state-specific differences stem from local healthcare costs, state regulations, and insurance company competition levels. Wisconsin, Iowa, and Hawaii offer the most affordable Medigap premiums at around $102 monthly, while New York tops the expensive list at $305 average monthly costs. Age progression significantly impacts costs, with rate increases over time affecting 75-year-old males in Florida who pay approximately $317 for Plan F coverage.
Understanding these cost variations helps you prepare for the next step: identifying the specific factors that insurance companies use to calculate your personal premium rates.
What Determines Your Medigap Premium
Insurance companies use three distinct rate methods that dramatically affect your long-term costs, and you can save thousands of dollars when you understand these systems. Community-rated plans charge everyone the same premium regardless of age, which makes them ideal for younger Medicare beneficiaries who want predictable costs.
Issue-age-rated plans lock in your premium based on your age when you first enroll, with rates that increase only due to inflation rather than age. Attained-age-rated plans start with lower premiums but increase annually as you age, which creates the steepest cost escalation over time.
Health Status Creates Price Barriers
Medical review becomes your biggest obstacle if you miss the six-month open enrollment window that begins when you turn 65 and enroll in Medicare Part B. Insurance companies cannot deny coverage or charge higher premiums based on health conditions during this guaranteed issue period. Outside this window, insurers can reject applications or impose wait periods for pre-existing conditions, which makes enrollment significantly more expensive or impossible. Tobacco users face automatic premium increases up to 10% across all carriers (reflecting the higher healthcare costs associated with smoke-related conditions).
Geographic Variables Drive Regional Prices
State regulations and local healthcare costs create massive premium differences that can double your annual expenses. New York’s community rate requirements contribute to higher premiums, with Medigap premiums that are no-age-rated and vary depending on location within the state. Insurance company competition levels in your area directly impact available options, with rural regions typically offering fewer carriers and higher prices than urban markets with robust competition.
Age and Gender Impact Premium Calculations
Women often pay lower premiums than men due to longer life expectancy and better health metrics across age groups. A 75-year-old male in Florida pays approximately $317 for Plan F coverage compared to lower rates for females of the same age. Age progression significantly impacts costs regardless of gender, with premium increases that compound annually under attained-age rate structures (making early enrollment more valuable).
These rate factors work together to determine your final premium, but smart shoppers can still find ways to reduce their monthly costs through strategic plan selection and enrollment timing.
How Can You Cut Your Medigap Costs
The six-month open enrollment period that starts when you turn 65 and enroll in Medicare Part B represents your best opportunity to secure affordable Medigap coverage. Insurance companies cannot deny coverage or charge higher premiums based on pre-existing conditions during this window, which gives you access to the lowest available rates. Missing this period forces you into medical underwriting where insurers can reject applications or impose wait periods for health conditions. Mark your calendar 60 days before your 65th birthday to begin shopping, as this timing allows thorough comparison without rushing into decisions that affect decades of healthcare costs.
Premium Differences Between Carriers Reach Hundreds of Dollars
Identical Medigap plans from different insurance companies can vary by $100 to $200 monthly, which makes carrier comparison your most powerful cost-reduction tool. Plan G premiums range from $140 in Hawaii to $236 in New York according to Kaiser Family Foundation data, but individual carrier quotes within the same state show even wider spreads.
Contact at least five carriers in your area to obtain personalized quotes, as online calculators often miss carrier-specific discounts and promotions. Electronic payment discounts reduce premiums by 3-5% at most carriers, while household discounts for married couples can save up to 15% when both spouses enroll with the same insurer.
High-Deductible Plans Slash Monthly Costs
High-deductible Plan G provides the same benefits after a deductible of $2,870 in 2025 is paid, which creates significant annual premium savings. The trade-off requires you to pay the full deductible before benefits activate, making this option ideal for healthy seniors who use minimal medical services. Calculate your break-even point when you compare annual premium savings against potential deductible expenses, as most people who spend less than $3,000 annually on healthcare save money with high-deductible versions. Plan K at $77 monthly offers another low-premium alternative, though the 50% coinsurance requirement makes it suitable only for those with excellent health and minimal medical needs.
Timing Your Application Maximizes Savings
States with guaranteed issue rights provide additional enrollment opportunities beyond the standard six-month window. These special circumstances include loss of employer coverage, moving outside your plan’s service area, or loss of Medicaid coverage. Take advantage of these periods to switch to lower-cost carriers without medical underwriting (which can save hundreds annually). Annual rate increases affect all Medigap policies, but community-rated plans protect you from age-based increases that compound over time.
Final Thoughts
The average cost of Medigap insurance spans from $77 monthly for basic Plan K coverage to over $300 for comprehensive Plan F, with Plan G at $164 representing the optimal balance. Premium variations between identical plans from different companies reach $200 monthly, which makes personalized quote comparisons your most powerful cost-reduction strategy. A 65-year-old in Wisconsin pays around $102 monthly while the same person in New York faces $305 average premiums for similar coverage.
Your six-month open enrollment window starts at age 65 and provides guaranteed issue rights without medical underwriting. This period offers access to the lowest available rates regardless of health status. Missing this window forces you into medical review where insurers can reject applications or impose higher premiums based on pre-existing conditions (making early action essential for affordable coverage).
We at Dave Silver Insurance help Medicare beneficiaries navigate these complex decisions with personalized guidance tailored to your health and financial needs. Our expertise focuses on finding the most affordable coverage options that match your specific situation. Schedule a consultation to receive individualized recommendations and gain confidence in your healthcare decisions.