Why are Medigap plans priced differently?
Asked by: Dwight Schaden | Last update: November 2, 2025Score: 4.9/5 (69 votes)
Are all Medigap G plans the same?
The benefits in each lettered plan are the same, no matter which insurance company sells it. The premium amount is the only difference between policies with the same plan letter sold by different companies.
What is the downside to Medigap plans?
There are a couple of cons to consider before choosing a Medigap plan: Premiums: Medigap premiums can be pricey. Coverage: Medicare Supplement plans don't cover everything, so you'd still have to pay out of pocket for things like dental care, vision care and long-term care.
What is the 6 month rule for Medigap insurance?
You have the right to purchase a Medigap policy for 6 months if you move out of the area served by your Medigap plan. For example, if you bought a plan while living in another state that will not cover you in your current state, you have 6 months to replace that plan.
Which states have the most expensive Medigap plans?
Medigap premiums vary by state and by policy type. For example, in 2023, the average monthly premium for people enrolled in Plan G was $164 ($1,968 for 12 months), but this varied from a low of around $140 in D.C., Hawaii, and New Mexico to $236 in New York.
Medigap Premiums - What determines your price?
Why do Medigap plans differ in price?
Although Medigap plans are standardized, premiums vary by company. Certain companies base premiums on your age. Some companies charge more for smokers, and others offer a variety of discounts. A few companies charge all members the same price, regardless of age or marital status.
Do Medigap premiums increase with age?
Attained-age-rated: Premiums are initially based on your age when you purchase a policy, and they increase as you get older (meaning you pay a different price at age 65 than you do at age 70). These premiums may be the lowest when you first buy them, but they are generally the most expensive over your lifetime.
Are Medigap policies being phased out?
The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) made some additional changes to the Medigap market, prohibiting insurers from issuing new policies that cover the full Part B deductible, making Plans C and F no longer available to beneficiaries who turned age 65 on or after January 1, 2020.
Which Medigap plan is most popular?
Plan G is the most popular Medigap policy, covering 39% of all policyholders (about 5.3 million people in 2023). It covers the Part A deductible and all cost-sharing for Part A and B services, but not the Part B deductible.
Why are people leaving Medicare Advantage plans?
Key takeaways: People leave Medicare Advantage plans because out-of-pocket costs vary between plans, network restrictions can cause frustration, prior authorization requests can delay care, and it can be difficult to use the additional benefits they provide.
What does Medigap not pay for?
Medigap plans generally don't cover: Long-term care (like care in a nursing home) Vision or dental care. Hearing aids.
Why is it not a good idea to have supplemental insurance?
One of the most significant drawbacks of supplemental insurance policies is the coverage limits. For instance, with Mechanical Repair Coverage, you'll typically need to pay out of pocket until your deductible is met on your primary policy before supplemental insurance takes over to cover a costly vehicle repair.
Why do people choose Medigap over Medicare Advantage?
Under Advantage plans, the government pays insurers to provide all of the care under a private policy. Medigap also allows retirees to choose their doctors. Advantage plans operate like HMOs, which control the cost of care by requiring policyholders to stay within an approved network of providers.
Does everyone have to pay $170 a month for Medicare?
Most people pay no premiums for Part A. For Medicare Part B in 2025, most beneficiaries will pay $185 per month. Certain factors may require you to pay more or less than the standard Medicare Part B premium in 2025.
How much is Plan G with AARP?
Plan G from AARP costs $158 per month, on average. In about half the country, AARP is a cheaper-than-average choice for Plan G, although its other plans can be expensive. The price you pay for a Medigap plan will depend on what plan you choose and when you buy a policy.
Why is a plan G better than an advantage plan?
Medigap Plan G offers more comprehensive benefits than the Medicare Advantage plan and is more widely available. It also provides more freedom for enrollees. For example, a Medigap Plan G enrollee can visit a specialist without a referral.
Is AARP UnitedHealthcare the same as UnitedHealthcare?
AARP® Medicare Supplement insurance plans for retirees. UnitedHealthcare Insurance Company (UnitedHealthcare) is the exclusive insurer of AARP Medicare Supplement insurance plans.
What is the cheapest Medigap plan?
High-deductible Plan G has the cheapest monthly rate of any Medigap policy. A high-deductible Plan G policy costs just $49 per month, on average. The main downside to high-deductible Plan G is that before coverage starts, you have to pay $2,870 in medical costs, called a deductible.
What is the best supplemental insurance for Medicare for seniors?
- Best for extra plan benefits: Humana.
- Best for straightforward coverage: State Farm.
- Best for extensive medical care coverage: AARP by UnitedHealthcare.
- Best for a range of Medigap plans: Blue Cross Blue Shield.
Can you switch from one Medigap company to another?
California, Idaho, Illinois, Nevada, Kentucky, Louisiana, Maryland, Oklahoma, and Oregon, have the Medigap Birthday Rule. If you are currently enrolled in a Medigap plan, you can change to a different Medigap plan each year around your birth month with no medical questions asked using a state-specific birthday rule.
Why is Plan F discontinued?
Why is Medicare Plan F no longer an option for most people? In short, Medicare Plan F is being phased out because of the first dollar coverage that made it so popular. As federal lawmakers saw it, that kind of coverage has the potential to be overused at the expense of the Medicare program.
Which states have guaranteed issues for Medigap?
State laws can provide further protections, but only four states— Connecticut, Massachusetts, Maine, and New York—require either continuous or annual guaranteed issue protections for Medigap for all beneficiaries in traditional Medicare ages 65 and older, regardless of their medical history.
Can you be turned down for a Medigap policy?
If you have or had health problems, you may not be able to buy the Medigap plan of your choice unless you are in open enrollment or a guarantee-issue period. It is important to understand these times because they allow you to get a Medigap plan when a company might otherwise refuse to sell you one (due to your health).
What percentage of seniors have Medigap plans?
About 34% of Medicare beneficiaries in California have a medigap plan. So... roughly a 1/3rd of Medicare eligible people.