by Russell Noga | Updated January 19th, 2024
Medicare supplemental insurance plans are essential coverage all seniors need to handle the unforeseen medical expenses they incur during their golden years.
There’s nothing more unsettling than receiving a huge hospital bill you can’t afford, ruining your financial planning for your senior years.
Original Medicare Parts A & B cover your hospital and medical expenses but not everything. You’ll have to pay around 20% of medical and hospital expenses incurred during your visits to the doctor and healthcare facilities.
Medigap covers these out-of-pocket costs, lowering the costs of your annual healthcare responsibilities.
You get peace of mind knowing you don’t have to dip into your retirement savings to cover your healthcare expenses.
This post looks at the average cost of Medicare supplement insurance.
We’ll give you an idea of what you’ll pay and the criteria insurers use to set your premiums.
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What Do Medicare Supplement Insurance Plans Cover?
The Federal government regulates the Medigap industry, ensuring all providers offer the same Medicare Part A & B coverage in their plans. However, some insurers may offer additional benefits and perks, such as free gym memberships and wellness discounts, to attract more clients.
All plans offer different coverage, depending on the plan specific. Typically, you’ll get coverage for some or all of the following in your plan. Speak to our agents about the right Medigap plan to meet your healthcare requirements.
- Part A coinsurance and hospital costs up to an additional year after Medicare benefits are used up
- Part B coinsurance or copayment
- Blood (first 3 pints)
- Part A hospice care coinsurance or copayment
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B deductible
- Part B excess charge
- 80% of foreign travel exchange (up to plan limits)
All Medigap policies don’t cover the cost of preventative care services like vision, dental, and hearing.
However, some providers add on these services for an additional fee. Medigap also won’t pay for care at long-term nursing homes or private duty nursing.
They also don’t cover the costs of prescriptions.
What are the Best Medicare Supplement Insurance Plans?
Plans F & G offer you the highest levels of coverage. They cover all the benefits above. However, the only thing that Plan G doesn’t cover is the Part B deductible, which Plan F does. Plan F is no longer available for people that qualify for Medicare after January 1, 2020. You can still apply for Plan F if you are eligible before this date.
Plans F & G also come in high-deductible versions. These plans increase your annual deductible from $1,600 to $2,700 for Part A. However, you get lower premiums that are approximately a third of the standard versions.
Plan N is another popular choice with good coverage in medical emergencies and low monthly premiums. However, you’ll have to make a $20 copayment at the doctors and a $50- copayment at the emergency room. You don’t have to make the $50 copayment if admitted to the hospital. Plan N also doesn’t cover your Part B excess charges.
Where Do You Buy Medicare Supplement Insurance?
You can buy a Medigap plan from leading healthcare insurers across the United States. There’s always a provider in your region, but not all companies service all states. Some have selected regions, and others offer countrywide service.
It’s important to note that Wisconsin, Minnesota, and Massachusetts have different rules on Medigap policies. So, you might find premiums and coverage vary in providers’ plans in these states.
You’ll also find there are fewer companies operating in these areas than in other states nationwide. Call our team, and we’ll recommend the best provider for any plan in your state.
Here are a few examples of some top-rated insurers offering Medigap policies across America.
- Aetna
- AARP
- Cigna
- Humana
- Liberty Bankers
- AFSLIC
- Atlantic Coast Life
- Bankers Fidelity
- Blue Cross Blue Shield
- Manhattan Life
- Lumico
- Mutual of Omaha
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How Do Medicare Supplement Insurance Providers Set Premiums?
Healthcare insurers set premiums based on factors involving your age, gender, smoking status, and where you live in the United States. Men are more expensive to insure than women, and smokers are more costly to insure than nonsmokers.
Medigap plans might be more expensive in one state than another and vary in cost between providers. So, AARP might be the best option in one state, while Aetna is more affordable in another. That’s why you need an experienced, licensed agent to help you find the lowest premiums for your Medigap plan. We work with insurers in all states and will get you the best deal.
What Is the Average Cost of Medicare Supplement Insurance?
Here’s a breakdown of the most affordable premiums for Medigap plans in Florida, Texas, North Carolina, and Virginia. Note these premiums are for a 65-year-old female nonsmoker and may vary from provider to provider, depending on who you use. Contact our team, and we’ll get you the best rates on any Medigap policy in your state.
Florida
Virginia
Texas
North Carolina
When Do You Enroll in Medigap Insurance Plans?
You can enroll in Medigap plans at any time of the year. However, the best time for enrollment is during the “Open Enrollment” window in the six months after your 65th birthday. During this period, the insurer has to accept your application to join their scheme. They cannot deny your application, even if you have a medical condition.
If you enroll outside this period, the insurer may subject you to medical underwriting. That means they might deny your application, enforce a waiting period, or charge you higher premiums than average for your plan if you have a pre-existing health condition.
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Frequently Asked Questions
What is Medicare Supplement insurance?
Medicare Supplement insurance, also known as Medigap, is private health insurance that helps cover the gaps in Original Medicare.
It can help pay for out-of-pocket costs such as deductibles, coinsurance, and copayments.
How much does Medicare Supplement insurance cost?
The cost of Medicare Supplement insurance can vary depending on several factors, including your location, age, gender, tobacco use, and the specific plan you choose.
It’s important to compare plans and obtain personalized quotes to get an accurate cost estimate.
What is the average cost of Medicare Supplement insurance?
The average cost of Medicare Supplement insurance can vary significantly based on the factors mentioned earlier.
However, a general range for premiums can be between $100 to $300 per month, depending on the plan and location.
Is there a difference in cost between Medicare Supplement Plan G and Plan N?
The cost of Medicare Supplement Plan G and Plan N can vary depending on several factors, including the insurance company, your location, and your age.
However, on average, Plan G tends to have slightly higher premiums compared to Plan N due to its more comprehensive coverage.
What factors can affect the cost of Medicare Supplement insurance?
Several factors can influence the cost of Medicare Supplement insurance, including your age, location, gender, tobacco use, and the specific plan you choose. Additionally, some insurance companies may use different pricing methods, such as age-related pricing or community-rated pricing.
Can the cost of Medicare Supplement insurance increase over time?
Yes, the cost of Medicare Supplement insurance can increase over time. Insurance companies may adjust premiums based on factors like inflation, healthcare costs, and the age of the insured.
It’s important to review your policy and understand how premiums may change in the future.
Are there ways to save money on Medicare Supplement insurance premiums?
While premiums for Medicare Supplement insurance are set by insurance companies, there are ways to potentially save money.
Shopping around, comparing different insurance companies, and reviewing available discounts or special offers can help you find a more affordable plan.
Does Medicare Supplement insurance cover all Medicare costs?
Medicare Supplement insurance helps cover the gaps in Original Medicare, but it does not cover all costs.
It typically helps with expenses like deductibles, coinsurance, and copayments, but it does not include coverage for prescription drugs, dental, vision, or hearing.
How can I get an accurate cost estimate for Medicare Supplement insurance?
To get an accurate cost estimate for Medicare Supplement insurance, it’s recommended to contact insurance companies directly or work with licensed insurance agents who can provide personalized quotes based on your specific circumstances and location.
Where can I get more information about Medicare Supplement insurance costs?
To obtain more information about Medicare Supplement insurance costs, you can visit the official website of the Centers for Medicare & Medicaid Services (CMS), consult with licensed insurance agents, or contact insurance companies directly for detailed plan-specific pricing information.
Call Us for a Free Quote on Medicare Supplement Insurance
Our professional, experienced, and fully licensed agents are available for a free consultation at 1-888-891-0229.
We’ll find you the best premium for any Medigap plan in any state. If you want a fast quote, use our automated online quoting tool to get an estimated premium on any policy.
Or fill out the contact form, and we’ll get a Medigap expert to call you back to discuss your healthcare requirements and budget.
Russell Noga is the CEO and Medicare editor of Medisupps.com. His 15 years of experience in the Medicare insurance market includes being a licensed Medicare insurance broker in all 50 states. He is frequently featured as a featured as a keynote Medicare event speaker, has authored hundreds of Medicare content pages, and hosts the very popular Medisupps.com Medicare Youtube channel. His expertise includes Medicare, Medigap insurance, Medicare Advantage plans, and Medicare Part D.