What Is the Average Cost of Supplemental Insurance for Medicare?
The average cost of a Medicare Supplement plan can go as low as $40 per month up to $400, possibly higher. Many factors determine the monthly premium, so each beneficiary will pay a different amount even if they select the same plan.
To help you understand the potential cost of Medicare Supplement insurance plans, we generated sample quotes for 5 of the most popular Medicare Supplement insurance policies. We used five zip codes to sample rates from around the country. Each quote assumes the beneficiary is a 65-year-old male, a 65-year-old female, and a nonsmoker.
| Company | Plan | Lowest Rate | Highest Rate | Gender | State |
|---|---|---|---|---|---|
| Aetna | F | $177.43 | $183.84 | Male | TX |
| United HealthCare | G | $111.12 | $125.79 | Female | TX |
| Aetna | N | $91.46 | $102.13 | Female | PA |
| Mutual of Omaha | High-G | $62.76 | $73.00 | Male | CA |
| Florida Blue (FL Residents Only) | F | $216.70 | $307.80 | Male | FL |
The factors used to determine your monthly premium:
- Zip code
- Current age
- Gender
- Smoker/nonsmoker
- Medicare Part A and Medicare Part B effective date
- Insurer’s rating strategy – community rating, Issue-age rating, attained-age rating
- Household discounts
The benefits offered by each Medicare Supplement Plan are standardized, which means you get the same covered services regardless of your chosen insurer. What isn’t standardized are the rates that each insurance company may charge. For instance, you may pay more for Plan G with one insurer than another.
Use this information as a general guide rather than a rule book. For example, if you smoke, you can expect slightly higher premiums. Rates may vary for males as well but not by much.
Average Cost of Medicare Supplement Plan G
For our sample quotes, the range for Medicare Plan G monthly premiums across all five zip codes was just under $108.90 to over $270.80.
There are higher rates exclusive to places like New York City, which reflect the higher cost of living in general in those locations. The higher end of the range in our samples was just over $200 per month.
| Company | Plan | Lowest Rate | Highest Rate | Gender | State |
|---|---|---|---|---|---|
| Aetna | G | $168.02 | $176.51 | Male | TX |
| Mutual of Omaha | G | $108.90 | $149.25 | Female | OH |
| Aetna | G | $151.94 | $166.27 | Male | PA |
| United Healthcare | G | $142.63 | $160.40 | Female | CA |
| Florida Blue (FL Residents Only) | G | $190.70 | $270.80 | Male | FL |
Medicare Plan G is the most comprehensive Medigap insurance policy available to all Medicare beneficiaries. It will cover most out-of-pocket expenses except the Part B deductible. That includes Part B excess charges, Part A deductible, skilled nursing facility benefits, and Medicare coverage for foreign travel emergency services.
Average Cost of High-Deductible Plan G
Our sample quotes delivered a range of $43.00 to $64.95 per month for high-deductible Plan G. Compare that to the range of nearly $90 to well over $400 for standard Plan G.
Not all Medigap insurance companies offer high deductible plan options, so you have fewer options if you decide this is your best option.
| Company | Plan | Lowest Rate | Highest Rate | Gender | State |
|---|---|---|---|---|---|
| Healthnet | High Deductible G | $43.00 | $43.00 | Male | CA |
| Mutual of Omaha | High Deductible G | $50.17 | $50.17 | Female | TX |
| Aetna | High Deductible G | $54.23 | $54.23 | Male | PA |
| United Healthcare | High Deductible G | $62.76 | $62.76 | Male | CA |
| Humana | High Deductible G | $64.95 | $64.95 | Male | CA |
High-deductible Plan G is a good option if you don’t go to the doctor often and don’t expect your medical condition to worsen in the future. You may also choose this option if you have money to pay out-of-pocket costs until you reach your deductible each year. You have to consider your cash availability and the typical cost of a doctor’s visit in your area to determine the most cost-effective plan type for you.
High-Deductible Plan G offers the same benefits as standard Plan G, but you have to meet a higher annual deductible before the insurance company starts sharing your health care costs. That creates a more substantial out-of-pocket expenditure, but you will pay far less monthly plan costs.
Average Cost of Medicare Supplement Plan F
Our sample premium range for Plan F was $131.14 to nearly $329.70.
Medigap Plan F is only available to beneficiaries who were eligible to enroll in Medicare before January 1, 2020. We altered our search criteria to reflect that, so our sample quotes are for a female born in 1954 rather than 1957. Most Medicare beneficiaries currently enrolling in Medicare will not have the option to select this plan.
| Company | Plan | Lowest Rate | Highest Rate | Gender | State |
|---|---|---|---|---|---|
| Aetna | F | $218.25 | $226.24 | Male | TX |
| Mutual of Omaha | F | $131.14 | $131.14 | Female | OH |
| Aetna | F | $151.94 | $178.00 | Male | PA |
| United Healthcare | F | $208.04 | $230.32 | Female | CA |
| Florida Blue (FL Residents Only) | F | $232.10 | $329.70 | Male | FL |
If you have the option, Medicare Plan F is the most comprehensive Medigap plan ever offered. It includes all deductibles, coinsurance, copayments, and 80% of foreign travel emergency care. It’s the only plan that covers the Medicare Part B deductible because it is no longer legal for insurance policies to include that coverage. Most plans cover expenses for Medicare Part A.
Suppose you don’t qualify for Plan F and want the most comprehensive coverage possible. In that case, your next best option is Medigap Plan G. Notice that the premium range is higher for these plans than other popular options like Plan N. As a result, you pay more monthly but have very few out-of-pocket expenses on top of the premium.
Average Cost of Medicare Supplement Plan N
Our sample rate query returned a range of nearly $84.78 to just over $255.40. If you eliminate the higher rates in New York City, the upper end of the range was around $130. These premiums are similar to the rates for Plan G, which offers more comprehensive coverage.
The benefits for Plan N are similar to Plan G, but your policy won’t cover the Part B deductible or any excess charges. While Medicare Part B coinsurance is covered, you will pay a small copayment of up to $20 for office visits and up to $50 for emergency room visits. The ER copay is waived if you’re admitted into the hospital.
| Company | Plan | Lowest Rate | Highest Rate | Gender | State |
|---|---|---|---|---|---|
| Aetna | N | $123.37 | $131.95 | Male | TX |
| Mutual of Omaha | N | $84.78 | $84.78 | Female | OH |
| Aetna | N | $105.21 | $117.45 | Male | PA |
| United Healthcare | N | $120.40 | $135.44 | Female | CA |
| Florida Blue (FL Residents Only) | N | $179.80 | $255.40 | Male | FL |
The Cost of Your Medigap Policy May Also Depend on the Insurance Company
Did you notice a substantial gap between some of the lowest and highest monthly premiums in our rate comparison charts for each of the 5 Medigap plans? Insurance companies are why there’s such a wide gap for many Medigap plans. So let’s look at some factors that can make a difference in your monthly premiums.
Discounts
Some insurers discount their policies to encourage a certain category of subscribers or a particular buying habit.
Some good examples are discounts for the following:
- Non-smokers
- Married couples
- Yearly payments
- Automatic payments
- Multiple active policies
Underwriting
You have guaranteed issue rights If you enroll in a Medicare Supplement Plan during your open enrollment period. The insurance company cannot legally use medical underwriting to determine your monthly premium. You may face medical underwriting, and thus potentially higher rates, when enrolling outside the open or a special enrollment period.
Medicare SELECT Plans
You can get lower rates by enrolling in a Medicare SELECT plan. These plans require you to use providers from a restricted network, but they can decrease your premium significantly when available.
High-Deductible Options
High-deductible Medigap plans offer much lower rates for the same benefits. The catch is that you will have a higher deductible, which increases your out-of-pocket expenses. In addition, the overall price range of plans from a particular provider can drop significantly if the provider offers high-deductible plans.
Ready to Learn More?
Choosing the right Medicare Plan is not a decision that should be taken lightly. With Policy Guide’s assistance, you will have access to the knowledge and expertise of professional agents who can help you compare different health plans, quotes, and policies to ensure that you make an informed decision. Let us guide you through this process, so that your chosen plan best suits your needs.
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