The price nobody explains
Same Plan G, triple the price: how Medigap is actually priced
Short answer: Medigap benefits are standardized by letter, so every insurer’s Plan G pays the same things, but prices are not standardized at all. The same letter can differ two or three times over between insurers in one ZIP code, and the reason is pricing method: whether your premium is tied to your age and rises every year, locked to the age you bought it, or pooled across everyone in the state. That choice, made once at 65, determines what you pay at 80. Here is how each method works, what drives the spread, and the questions that reveal the real cost.
Key takeaways
- Benefits are standardized by letter; premiums are not. Compare identical letters on price and rate history, never on benefits.
- Three pricing methods exist: attained-age (rises with your age), issue-age (based on your age at purchase), and community-rated (same for everyone).
- Attained-age policies are usually cheapest at 65 and most expensive at 85, which is exactly when switching becomes hardest.
- Every insurer also raises rates for inflation and claims, on top of any age-based increase, so ask for the rate-increase history.
- Timing beats shopping: during your 6-month Medigap open enrollment window, no insurer can refuse you or charge more for health reasons.
The three pricing methods
| Method | How your premium behaves | Typical pattern |
|---|---|---|
| Attained-age rated | Rises as you get older, every year, in addition to inflation increases | Cheapest at 65, most expensive later; the most common method |
| Issue-age rated | Based on your age when you bought it; does not rise because you aged | Costs more at 65, but age-based increases never arrive |
| Community-rated | Same premium for everyone with that plan in the area, regardless of age | Flattest over time; available in some states only |
All three still increase for inflation and claims experience. Availability varies by state, and some states require or ban particular methods.
Insurers are not required to volunteer which method they use, and the quote you are shown is almost always the first-year price. Asking the method changes the comparison entirely, because two policies with the same benefits and similar starting premiums can diverge by thousands of dollars a year two decades later.
The attained-age trap
An attained-age policy that looks like a bargain at 65 gets more expensive every single year, and the increases compound with the insurer’s regular rate hikes. The problem is not the cost itself; it is the timing. By the time the premium becomes painful, typically in your late seventies or eighties, switching to a cheaper policy usually requires medical underwriting, and that is precisely the age at which health conditions make underwriting hard to pass. People who bought on first-year price alone often find themselves paying the highest rates with the fewest options, which is the opposite of how insurance is supposed to work. A handful of states have birthday rules or annual guaranteed-issue windows that let you switch without underwriting, and in those states the trap is much weaker.
What else moves the price
- Where you live. Medigap premiums vary by state and often by ZIP code, tracking local medical costs.
- Which letter. Plan G versus Plan N is the live comparison today; G covers more and costs more, N trades copays for a lower premium. Plan F is closed to people newly eligible from 2020.
- Tobacco use and, in most states, health at application, outside protected windows.
- Household discounts. Many insurers discount 5% to 12% when two people in a household both hold policies, and almost nobody mentions it unprompted.
- High-deductible versions. High-deductible Plan G carries a $2,950 deductible in 2026 at a fraction of the premium, which suits people comfortable self-funding the first layer.
How to compare honestly
Because the benefits are identical within a letter, the comparison is purely commercial, and four questions separate a good quote from a bad one:
- "Is this attained-age, issue-age, or community-rated?" The single most consequential answer.
- "What have your rate increases been for this plan in this state over the last five years?" Past increases predict future ones better than any first-year price.
- "Are there household or payment discounts I qualify for?"
- "How long has this company sold Medigap in my state?" Insurers that enter with low prices and raise them steeply are a known pattern.
Your state insurance department publishes Medigap rate comparisons for your area, and your SHIP counselor will walk through them with you at no cost and no commission. Medicare’s own Medigap search tool lists the policies sold in your ZIP code.
Why timing beats price
The most valuable thing about Medigap is not a discount; it is the 6-month open enrollment window that begins when you are 65 and enrolled in Part B. During it, insurers must sell you any policy they offer at their standard rate regardless of health history. After it closes, most states allow medical underwriting, which means the price you are quoted, or whether you are quoted at all, depends on your health. A cheap policy you can buy today beats a cheaper one you cannot qualify for in five years. That asymmetry is also why moving from Advantage to Medigap later is harder than people expect, and why the supplement decision is really a timing decision.
Questions people also ask
How much does Medigap cost per month?
Why do Medigap prices vary so much for the same plan?
What is the difference between attained-age and issue-age Medigap?
Does Medigap get more expensive as you age?
When is the best time to buy a Medigap policy?
Sources for this article
- Medicare.govBuying a Medigap policy: standardized plans, pricing methods, and the open enrollment window.
- Medicare.govFind a Medigap policy: policies sold in your ZIP code.
- Medicare.govWhen to buy Medigap: guaranteed issue rights and underwriting rules.
Figures checked against these sources on September 30, 2026. We update within days when CMS publishes new amounts.
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