How Much Do Medicare Supplement Plans Cost?

Suppose you're looking into a Medicare Supplement Plan. In that case, you likely know that Original Medicare is not a one-stop-shop for full healthcare coverage. Medicare may cover many preventative services; however, you'll still be left with many out-of-pocket costs. How can you maintain those out-of-pocket costs? Well, you can purchase a Medicare supplement plan to help cover additional costs.

How Much Do Medicare Supplement Plans Cost

Now let’s get into how much a Medicare Supplement Plan costs!

All About Medicare Supplement Plans

A Medicare Supplement Plan, also known as Medigap, is supplementary coverage to Original Medicare. Medigap plans were created to lower your out-of-pocket costs and cover the gaps in Original Medicare coverage. If Medicare pays first, then Medigap will cover that service. If Medicare doesn't approve a service, it won't be approved by a Medigap plan. You can use your Medigap plan anywhere that accepts Medicare within the U.S.

Many people will choose between a Medicare Supplement Plan and a Medicare Advantage plan to help cover additional costs. Both plans will help you cover out-of-pocket costs, but they are very different. Read more about Medicare Advantage plans vs. Medicare Supplement plans:

The Costs of a Medicare Supplement Plan

Now that we've gone over what a Medicare Supplement Plan is, let's discuss the plan's costs. Since the federal government doesn't offer Medigap plans, there are private insurance companies that sell them. There are two high-deductible options and ten different standardized Medigap plans offered. Since the ten plans are standardized, they will be the same across the board no matter which carrier you choose.

When it comes to cost, there is no standard answer. This is because each plan varies from person to person. Medigap premiums are based on many different factors, such as your gender, zip code, age, who you purchase your policy through, and tobacco use. These factors differ for everyone. For example, a 65-year-old female living in Texas will have a different price than a 65-year-old male living in California.

When Should You Apply for a Medigap Plan?

Is there a specific time you will want to apply for a Medigap plan? Indeed, there is. There's a 6-month long Medigap Open Enrollment period based on your Part B effective date. This open enrollment period shields you from being asked health questions on your application form.
Suppose you choose to enroll outside of your open enrollment period. In that case, you'll face going through medical underwriting in most states. Every insurance company has its application for Medigap plans. You'll typically find one page on the application consisting of health questions. You can be denied coverage entirely, or you can be rated up which means they approved you, but you’ll pay a higher premium.

If you're planning on purchasing a supplement, do not miss the Medigap open enrollment period!

How to Shop Medigap Plans

When it comes time to shop for Medigap plans, you will want to review many different carriers and rates to find the most cost-effective plan. Since the plans are standardized, you may find a low rate for the same plan through a different carrier. Take your time and have an idea of what you want in a plan ahead of time. Find an excellent Medicare brokerage, like Boomer Benefits, that takes the work and confusion out of Medicare and helps you with your plan post-sale.


Since Medigap plans are secondary plans, they cover a lot of costs for you. Therefore, they have higher premiums. If you're interested in purchasing a Medigap plan, just know the costs will vary from person to person. Once you decide you want a Medigap plan, make sure you enroll during your Medigap open enrollment period to avoid late penalties. A Medigap plan is great for those unexpected Medicare costs and helps keep costs relatively low!  

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