Medicare Supplement Insurance Plan Rates

Medicare Supplement Insurance plans (also called Medigap) are sold by private insurance companies, so their rates will vary based on your location, the type of plan you buy and several other factors.

Learn more about how Medicare Supplement Insurance rates are determined and request free online policy quotes so that you can find the right Medigap plan for your health care needs.

Cost of Medicare Supplement Plans

Each insurance company – such as Aetna – determines how they will rate their plans. Medigap policies are typically priced in one of three ways.

• Community-rated
  In a community-rated plan, everyone enrolled in the plan is charged the same rate regardless of age. Rates may go up based on inflation but will not increase because of a beneficiary's age.
  
  
• Issue-age-rated
  This Medigap pricing model bases Medicare Supplement Insurance rates on the age at which a beneficiary enrolls, with younger customers receiving lower premiums. Like the community-rated model, issue-age-rated premiums will increase only because of inflation.
  
  
• Attained-age-rated
  Medigap rates with this pricing model are based on your current age. Younger enrollees will receive a lower initial rate but will see their premiums increase as they get older.

Other Factors That Affect Medicare Supplement Insurance Rates

There are other factors that can influence the cost of a Medicare Supplement Insurance plan, including the following:

• Some insurance companies may offer discounts for non-smokers, women, married couples or other specific groups.

• If you sign up for a Medigap plan outside of your six-month Medigap open enrollment period, you may be subject to medical underwriting, which can have an impact on your rates.

• Just like the cost of many goods and services, Medicare Supplement Insurance rates may differ greatly based on your location.

• Because different types of Medigap plans offer varying degrees of benefits, plans with more coverage will typically cost more than plans with fewer basic benefits.

Medigap Cost Comparison Chart

While the costs of Medigap plans are not standardized, the basic benefits they provide are. There are 10 different types of standardized Medigap plan types available, identified by the letters A, B, C, D, F, G, K, L, M and N. By law, each plan must provide the same benefits as all other plans of the same letter, no matter where they are sold.

Important: Plan F and Plan C are not available to beneficiaries who became eligible for Medicare on or after January 1, 2020.

In other words, a Medigap Plan C from one insurer will include the same basic benefits coverage as a Medigap Plan C sold anywhere else in the country.

Compare the basic benefits of each type of Medicare Supplement Insurance plan by using the chart below.

Compare Medicare Supplement Insurance Rates

The best way to get a feel for Medicare Supplement Insurance rates is to compare quotes from insurance companies in your area. You can compare rates from multiple companies for free online in just a few steps.

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Sources:

AALTCI: http://www.aaltci.org/news/long-term-care-insurance-news/medicare-supplement-insurance-policy-costs-vary-by-up-to-68-percent

Medicare.gov: https://www.medicare.gov/supplement-other-insurance/when-can-i-buy-medigap/when-can-i-buy-medigap.html