When you enroll in Medicare, one of the many things to remember is that there is no out-of-pocket limit to how much you spend on medical care, so you could accumulate high, unpredictable medical expenses — such as deductibles, copayments and coinsurance — that may take a long time to pay off.
However, Medigap, also known as Medicare Supplement Insurance, is a type of private insurance that helps cover certain out-of-pocket costs that are not covered by original Medicare (Part A or Part B).
“Medigap is important because it provides protection from unexpected medical expenses and helps make health care costs more predictable,” says Natasha McPherson, owner of the Medicare brokerage, Medicarerocks.com.
No one Medigap plan costs the same, which is why it’s so important to do your research ahead of time to see which one will work best for you and your financial needs.
[READ What Is the Medigap Birthday Rule and Which States Have It?]
How Much Do Medigap Plans Cost?
No matter which Medigap plan you go with, you’re going to have to pay a premium. Some plans with higher deductibles and less coverage may only cost you $30 to $40 per month, while others can cost you over $250 monthly.
“There are 10 standardized Medigap policies, and the premiums vary dramatically,” McPherson says. “Shopping around is crucial since you’re paying for identical benefits and the first company to contact you is rarely the best deal.”
[READ: How to Pick a Medigap Plan]
How Medigap Pricing Works
Medigap costs are based on a variety of factors, including:
— Where you live
— Which insurer you choose
— Which type of Medigap plan you select
— When you enroll in Medigap
The Centers for Medicare & Medicaid Services (CMS) standardizes what the plans cover, so each plan has the same coverage regardless of what company you choose. However, the CMS does not control the pricing for those plans.
“When it comes to pricing, it’s the wild west,” McPherson says. “Each insurer gets to choose their pricing method and set their own rates, which is why identical plans vary so much in price.”
Companies can price however they want based off these three pricing models:
— Community-rated. Everyone pays the same, regardless of age.
— Issue-age-rated. The price is determined based on your age, plus when you buy the plan.
— Attained-age-rated. The premium increases as you get older.
“Under federal law, there are only a few restriction on how insurance companies that sell Medigap can price their policies,” explains Casey Schwarz, senior counsel for education and federal policy at Medicare Rights Center. “Many of those limits only apply when a person is buying the policy during a protected time period. Outside of that time, insurers can charge increased premiums because of health status.”
[READ Medigap vs. Medicare Advantage: Which Should You Buy?]
Comparing Medigap Plans
Remember, every plan essentially offers the same thing. It largely depends on the type of premium you want to pay monthly and the type of deductible.
“Medigap is designed to layer over your Medicare parts A and B coverage and can be used in combination with a Medicare Part D prescription drug plan to provide comprehensive medical coverage for Medicare beneficiaries,” says Whitney Stidom, vice president of consumer enablement with eHealth Inc., a health insurance broker and online resource provider headquartered in Santa Clara, California.
Almost every state offers the same lineup of Medigap plans.
There are 10 standardized plans with letter designations (A, B, C, D, F, G, K, L, M and N) that are offered in most states, while three states — Massachusetts, Minnesota and Wisconsin — have different standardized plans.
Note: Plans F and G are both high-deductible Medigap plans, but they allow you to see out-of-network providers, Stidom explains. As of 2026, high-deductible Medigap plans begin covering costs after you’ve paid $2,950 out of pocket. Both plans F and G provide the most comprehensive coverage.
However, Plan F is being phased out and is currently unavailable for people who turned 65 on or after January 1, 2020.
Tips for Keeping Medigap Costs Low
Again, each plan offers the exact same coverage. The key is to choose the price point and plan configuration that works best for you and your financial needs right now and long-term.
1. Sign up for a Medigap plan when you enroll in Medicare
To get the cheapest rate on your Medigap plan, you’ll want to enroll at the same time you first enroll in Medicare. Once you become eligible for Medicare, you have a six-month window to enroll in any Medigap plan offered in your state — no matter your current health status or health history.
“If people want to enroll in Medigap later, medical underwriting may be required (depending on where the person lives),” Stidom adds. “That means you could pay substantially more for Medigap coverage depending on factors such as your age and medical history.”
2. Work with a licensed insurance agent
There’s a lot of information to digest during Medicare and Medigap enrollment, which is why it’s so helpful to work with a licensed insurance agent who can offer different plans from competing insurers to help give you a clear picture of what’s available, based on your needs.
“It doesn’t cost anything extra to work with an agent,” Stidom says.
While there are many types of insurance brokers, it’s best to work with a noncaptive Medicare agent, as they work with all insurance companies in your area. This way, you get the best deal with no bias toward one particular company as a captive agent might. A captive agent may have a conflict of interest when selling insurance to you, as they are only paid through one insurance company either via a salary, commission or both.
3. Explore available discounts
Not everyone is subject to high monthly premiums, so be sure to do your research and look for ways you can save. For example, some Medigap plans offer lower premiums to members of certain groups, such as retirees from specific companies or people who join qualifying organizations.
You also may be able to reduce your premium through discounts. Scenarios that may make you eligible for a lower monthly cost include:
— Living with someone who also has Medigap policy from the same insurer as you
— Applying online for a Medigap plan versus over the phone
— Setting up automatic payments, or paying for one year upfront
— Bundling your Medigap plan with other coverage (think: dental or life insurance) from the same insurance company
— Being enrolled in AARP
4. Evaluate your health care budget ahead of signing up
It’s not always easy — or even permitted — to switch Medigap plans. But sometimes, it’s necessary if you want to keep your monthly costs low.
“Remember that the cheapest plan today may not stay that way,” McPherson says. “I always recommend that individuals have their wealth manager run their health care budget over the duration of their life, so they don’t get into this kind of issue.”
For example, if you choose an attained-age-rated plan now, just know that it will cost you more as you get older. Consider speaking with a financial advisor before you sign up for a Medigap plan so you can afford it long-term — not just right now.
Bottom Line
Medigap is a foundational part of exhaustive Medicare coverage. If you have original Medicare, Medigap can spare you from a stifling buildup of copays and coinsurances over time. When signing up for a Medigap plan, consider working with a wealth manager, insurance agent or financial advisor to help you get an idea of what monthly premium you can comfortably afford for the rest of your life.
More from U.S. News
Understanding the Medicare Part B Giveback Benefit
Understanding Parts of Medicare: A Through N Explained
Does Medicare Cover Addiction Treatment and Rehabilitation?
How Much Does Medigap Cost? originally appeared on usnews.com
Update 01/14/26: This story was previously published at an earlier date and has been updated with new information.
