What Is the Average Cost of Medicare Supplement Insurance?
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
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
- Plan A – UnitedHealthcare: $220.42
- Plan B – UnitedHealthcare: $266.99
- Plan C – UnitedHealthcare: $426.67
- Plan D – Blue Cross Blue Shield of Florida: $285.40
- Plan F – UnitedHealthcare: $429.23
- Plan G – UnitedHealthcare: $256
- Plan N – UnitedHealthcare: $210
Virginia
- Plan A – UnitedHealthcare: $96.99
- Plan B – UnitedHealthcare: $132.06
- Plan C – UnitedHealthcare: $293.97
- Plan F – Cigna: $118.00
- Plan G – Aetna: $91
- Plan N – Aetna: $96
Texas
- Plan A – Aetna: $124.11
- Plan B – Aetna: $129.68
- Plan C – UnitedHealthcare: $348.42
- Plan F – Aetna: $213.27
- Plan G – Aetna: $135
- Plan N – Aetna: $94
North Carolina
- Plan A – UnitedHealthcare: $106.59
- Plan B – UnitedHealthcare: $141.21
- Plan C – UnitedHealthcare: $194.81
- Plan D – UnitedHealthcare: $138.55
- Plan F – Cigna: $170.28
- Plan G – Blue Cross Blue Shield of North Carolina: $74
- Plan N – Cigna: $86
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.
Frequently Asked Questions
What is Medicare Supplement Insurance?
Medicare Supplement Insurance, also known as Medigap, is a private insurance policy designed to fill the gaps in coverage left by Original Medicare (Part A and Part B). It helps cover out-of-pocket costs like copayments, coinsurance, and deductibles.
How much does Medicare Supplement Insurance cost on average?
The average cost of Medicare Supplement Insurance can vary depending on several factors, such as the plan type, your location, age, and health status. On average, premiums may range from $100 to $300 per month.
Which factors influence the cost of Medicare Supplement Insurance?
The cost of Medicare Supplement Insurance is affected by factors like your age, gender, location, tobacco use, plan type, and the insurance provider you choose. Rates may increase as you age and if you enroll outside of the open enrollment period.
Is Medicare Supplement Insurance the same as Medicare Advantage?
No, Medicare Supplement Insurance (Medigap) and Medicare Advantage are different. Medigap supplements Original Medicare, while Medicare Advantage plans replace it. Medigap policies help cover gaps in Original Medicare, whereas Medicare Advantage plans provide an alternative way to receive Medicare benefits.
Can I change my Medicare Supplement plan if I find a more affordable option?
Yes, you can change your Medicare Supplement plan. However, switching plans may involve underwriting, which means your health condition could impact the availability and cost of a new policy. It’s essential to compare plans and consult with a licensed insurance agent before making changes.
Are Medicare Supplement premiums fixed, or do they increase over time?
Medicare Supplement premiums are not fixed. They can increase over time due to factors like inflation, medical cost trends, and other variables set by the insurance company. Premiums can also vary between different insurance providers.
Are there any discounts available for Medicare Supplement Insurance?
Some insurance companies may offer discounts on Medicare Supplement Insurance policies. These discounts could be based on factors like paying annually, non-smoker status, household discounts, or spousal discounts. It’s advisable to inquire about available discounts when comparing plans.
How do I find the best-priced Medicare Supplement Insurance plan?
To find the best-priced Medicare Supplement plan, compare policies from different insurance providers. Pay attention to the coverage each plan offers and the premium costs. Consider your healthcare needs and budget before making a decision.
Is Medicare Supplement Insurance necessary for everyone on Medicare?
Medicare Supplement Insurance is optional, but it can be beneficial for individuals who want more predictable healthcare costs and broader coverage. If you have a limited income, you may explore other options like Medicaid, which can help with Medicare-related expenses.
Can I have both Medicare Supplement Insurance and Medicaid?
It’s generally not possible to have both Medicare Supplement Insurance and Medicaid at the same time. Medicaid provides coverage for low-income individuals, including some Medicare beneficiaries, while Medigap policies are for individuals with Original Medicare who want additional coverage.
Average Cost of Medicare Supplement Insurance and How to Apply
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Updated December 4th, 2022