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 and Part B).
“Medigap is important because it provides protection from unexpected medical expenses and helps make healthcare 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.
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 What Is the Medigap Birthday Rule and Which States Have It?]
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 points out. “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 on 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 restrictions 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: How to Pick a Medigap Plan]
Comparing Medigap Plans (A Through N)
Almost every state offers the same lineup of Medigap plans, with letter designations (A, B, C, D, F, G, K, L, M and N). Three states — Massachusetts, Minnesota and Wisconsin — have different standardized plans.
Note: Plans F and G offer both standardized and high-deductible plans. 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. Plan F, however, is being phased out and is currently unavailable for people who turned 65 on or after January 1, 2020.
Here’s how each plan compares:
| Benefits | Plan A | Plan B | Plan C | Plan D | Plan F | Plan G | Plan K | Plan L | Plan M | Plan N |
| Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Part B coinsurance or copayment | Yes | Yes | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes |
| Blood benefit (first 3 pints) | Yes | Yes | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes |
| Part A hospice care coinsurance or copayment | Yes | Yes | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes |
| Skilled nursing facility care coinsurance | No | No | Yes | Yes | Yes | Yes | 50% | 75% | Yes | Yes |
| Part A deductible | No | Yes | Yes | Yes | Yes | Yes | 50% | 75% | 50% | Yes |
| Part B deductible | No | No | Yes | No | Yes | N/A | No | No | No | No |
| Part B excess charge | No | No | No | No | Yes | Yes | No | No | No | No |
| Foreign travel emergency (up to plan limits) | No | No | 80% | 80% | 80% | 80% | No | No | 80% | 80% |
| Out-of-pocket limit | N/A | N/A | N/A | N/A | N/A | N/A | $8,000 in 2026 | $4,000 in 2026 | N/A | N/A |
*This table is based on Medicare.gov’s 2026 standardized Medigap coverage comparison chart.
[READ Medicare Advantage vs. Medigap: Which Plan Is Better for You?]
Tips for Keeping Medigap Costs Low
The key to finding the right Medigap plan 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),” adds Whitney Stidom, vice president of consumer enablement with eHealth Inc., a health insurance broker and online resource provider headquartered in Indianapolis. “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 can be 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 a 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 healthcare 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 healthcare 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.
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How Much Does Medigap Cost? originally appeared on usnews.com
Update 07/17/26: This story was previously published at an earlier date and has been updated with new information.
