Medigap premiums are driven by three things: the plan you pick, your personal profile, and the insurer’s pricing model. Because these vary, monthly premiums for Medicare Supplement Insurance can differ a lot.
The Plan You Select
Your plan letter has the biggest impact on price. Most states offer 10 standardized Medigap plans with different coverage levels. See what each plan covers in our Medigap comparison chart and benefits overview.
Standardized benefits – different prices. Plan F from one insurer covers the same benefits as Plan F from another, but premiums can still vary widely by company. A well‑known study found large price gaps within the same state for the same plan letter, which is why it pays to compare quotes and shop rates.
Your Personal Characteristics
Insurers use underwriting to estimate risk and set premiums. Factors can include age, tobacco use, gender, and ZIP code. During certain windows you may have protections that limit underwriting impacts.
- Age: Older applicants tend to have higher expected claims, so premiums are often higher.
- Tobacco use: Associated with higher health risks, which can increase premiums.
- Gender: Some carriers may price differently by gender, though the effect is smaller today.
- Location: Costs can vary by state and sometimes by ZIP code.
Open enrollment and guaranteed issue can override underwriting. During your 6‑month Medigap Open Enrollment Period and certain guaranteed‑issue rights, companies generally cannot use medical underwriting to deny you or raise your premium because of health. Learn more in eligibility and enrollment.
The Insurer’s Pricing Model
How a company prices its policies affects what you pay now and how rates may change later. Medigap carriers typically use one of three models:
| Pricing model | How your premium is set | What it means over time |
|---|---|---|
| Attained‑age | Based on your current age. Premiums usually start lower at 65 and rise as you get older. | Expect age‑based increases. Rates can also change for inflation or company‑wide adjustments. |
| Community‑rated | Everyone of the same plan pays the same premium regardless of age. | No age‑based increases, but prices can still go up due to inflation or overall claims. |
| Issue‑age | Set by your age when you buy. Enrolling younger can lock in a lower starting premium. | No increases due to aging, but premiums may rise for inflation or company factors. |
Why Comparing Matters
Same letter – different prices. Even with standardized benefits, premiums can vary significantly by carrier and pricing model. Your age and tobacco status can add to that spread. Taking a few minutes to compare plans can lower your monthly cost.
Next Steps
- Review coverage differences in the plan comparison chart.
- Check your timing for open enrollment and any guaranteed‑issue rights.
- Compare rates from multiple licensed insurers to find a competitive premium for your plan letter.
If you would like help weighing plan letters, pricing models, and underwriting rules in your state, a licensed insurance agent can walk you through your options.