The Average Cost of Medigap Plan F and Plan G by Age
Age is one factor that Medicare Supplement Insurance (Medigap) companies can use when determining the premiums for plans. Your Medigap premium is how much you pay per month to be a member of the plan.
Medicare Supplement Insurance premiums tend to increase with age.
In this guide, we break down the average monthly premiums of Medigap Plan G and Plan F by age, from age 64 to age 85.
How Much Does the Average Medicare Supplement Plan Cost?
Based on our analysis, we noted several key takeaways:
- Medicare Supplement Insurance Plan F premiums in 2018 were lowest for beneficiaries at age 64 ($146.55 per month) and highest for beneficiaries at age 82 ($236.53 per month).
- Medigap Plan G premiums in 2018 were lowest for beneficiaries at age 64 ($113.14 per month) and highest for beneficiaries at age 85 ($184.22 per month).
|Average Monthly Cost of Plan F||Age in Years||Average Monthly Cost of Plan G|
Is Medigap Plan G Better Than Plan F?
While there can be a sizeable difference in average premiums between Plan F vs. Plan G, there’s only a small difference in benefits these two plans offer.
- Plan F provides coverage each of the 9 possible benefits that the 10 standardized Medigap plans can offer, including the Medicare Part B deductible.
- Plan G does not cover the Medicare Part B deductible, but it offers coverage for all of the same out-of-pocket Medicare costs that Medigap Plan F covers.
For 2019, the Part B deductible is $185 per year.
The $185 annual deductible equates to $15.42 per month.
This means that a Plan G with a premium of no more than $15 per month more than a Plan F option could actually serve as a better value, provided you meet the entire Part B deductible.
Plan F will no longer be available to new Medicare beneficiaries starting on January 1, 2020. If you already have Medicare, you can still enroll in Plan F if the plan is available in your area.
Medigap Plan F and Plan G are the two most popular Medigap plans, as of 2016.2
How Does Age Affect Medicare Supplement Insurance Premiums?
There are three different age-related pricing models that Medicare Supplement Insurance companies use to determine their Medigap plan rates in 2019.
Each type of cost model can affect the average price of a given Medigap plan.
- Community-rated Medigap plans
With community-rated Medigap plans, every member of the plan pays the same rate, regardless of age.
For example, an 82-year-old who enrolls in a community-rated Plan G will pay the same Medigap premiums as a 68-year-old beneficiary who has the same Plan G in the same market.
- Issue-age-rated Medigap plans
With issue-age-rated Medigap plans, premiums are based on your age at the time you enrolled in the plan.
You will typically pay less for an issue-age-rated plan if you enroll in the plan when you’re younger. Your premiums also won’t increase based on your age.
- Attained-age-rate Medigap plans
Attained-age-rated Medigap plans set their premiums based on your current age. As you age, your Medigap plan premiums will gradually increase each year.
Medigap premiums can increase over time due to inflation and other factors, regardless of the pricing model your insurance company uses.
Compare Medigap Plan Costs in Your Area
Bear in mind that the premium averages listed above are just that — averages. There may be plans available in your area that cost less than the average listed above for your age.
Other factors such as gender, smoking status, health and where you live can also affect Medigap plan rates.
A licensed insurance agent can help you compare Medicare Supplement Insurance plan costs in your area so that you can find a plan that fits your coverage needs as well as your budget.
Compare Medigap plan costs in your area.
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1 TZ Insurance Solutions LLC internal sales data, 2019. This data is based on the Medicare Supplement Insurance policies TZ Insurance Solutions LLC has sold. It is not a comprehensive national average of all available Medicare Supplement Insurance plan premiums.
2 AHIP. State of Medigap 2018 Trends in Enrollment and Demographics. (June, 2018). Retrieved from www.ahip.org/wp-content/uploads/2018/06/State_of_Medigap18_FINAL.pdf.
Christian Worstell is a health care and policy writer for MedicareSupplement.com. He has written hundreds of articles helping people better understand their Medicare coverage options.