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ALL ABOUT MEDICARE SUPPLEMENT PLANS
- Michael Braden
- Feb 24
- 10 min read
Michael T. Braden February 20, 2026, Medicare Supplement Plans
Medicare Supplement Plans, or Medigap Plans as they are commonly referred to, are the best way to protect yourself from catastrophic Medical Bills in retirement. There are 12 separate plans to choose from, and they work alongside Original Medicare.
Original Medicare is an 80/20 Healthcare Plan. The government (Medicare) pays for 80% of your healthcare after you have met the $283 Medicare Part B deductible. That leaves you, the Medicare beneficiary, to cover the remaining 20%. Medicare Supplement/Medigap Plans can cover all or a portion of this 20%, depending on where you live and which plan you choose.
In this article, we will discuss what Medicare Supplement Plans are, which plans are the most popular, what factors go into determining what the monthly premiums are, how to compare plans, some helpful insider tips for how to compare plans, what information to look for, and how to stay ahead of premium increases in retirement.
Curious about the cost of Medicare supplement plans? The monthly premium for any Medicare supplement plan will vary widely from state to state and from one insurance company to another. In addition, monthly premiums will change annually. Most Insurance companies have taken larger-than-necessary premium increases over the past 2-3 years. Overall, we can expect an increase every 2-3. Over time, Plan N has averaged 3-5% increases, Plan G has averaged 4-7%, and Plan F has averaged 6-9%.
There is no single article that provides you with accurate, timely information on the premium rates and plans available to you today. The only way to get an accurate picture of the cost of Medicare Supplement plans is to request free quotes from us at Braden Medicare Insurance or from a licensed, independent Medicare Broker in your area. Medicare brokers work with many different insurance companies, giving you more choices while keeping your interests in mind.
WHAT THINGS FACTOR INTO MEDICARE SUPPLEMENT PLAN PREMIUMS?
Monthly premiums for Medigap plans vary significantly based on factors such as plan type, age, location, and health status, underscoring the need for careful comparison. It is important to remember that not all plans are available in all states, and that rates will vary from state to state based on various factors.
Medicare Supplement/Medigap plans are standardized, meaning that each individual, lettered Medicare Supplement plan has the same benefits in all 50 states. Rates will vary from state to state based on six main factors:
Your Age
Your Sex
Your Location
The Rating Method Used in Your State
Do you Use Tobacco
Are You Height/Weight Appropriate?
MEDICARE SUPPLEMENT/MEDIGAP MONTHLY PREMIUMS
One of the first things you’ll notice when exploring Medigap plans is the wide range of monthly premiums, including the average. These premiums can vary significantly, often ranging from as low as $ 50 to several hundred dollars, depending on the plan type, your location, and the private insurance companies you select. This variability can be attributed to several factors, including the specific Medigap plan selected, the beneficiary’s age, location, and health status. For instance, a Plan K might offer lower premiums but require more cost-sharing from the beneficiary. In contrast, a Plan G, with its comprehensive coverage, might come with a higher premium.
It’s important to remember that while lower premiums might seem attractive initially, they often come with higher out-of-pocket costs when you need care or higher future premiums. Therefore, balancing the monthly premium with the expected healthcare needs is crucial. This is where understanding the specifics of each plan and how it aligns with your health and financial situation becomes pivotal.
DEDUCTIBLES WITH MEDICARE SUPPLEMENT PLANS
Deductibles are another critical component of Medigap plans that beneficiaries need to consider. For those opting for high-deductible plans like Plan F and Plan G:
The high-deductible Plan G and Plan F are the only supplement plans with deductibles. Other plans have no deductible, but may not cover the Medicare deductible.
In 2026, the deductible for these high-deductible options is set at $2,950 (see the 2026 Medicare Supplement Plan Comparison Sheet for more details). The deductibles for both HDG and HDF plans are based on the Rate of Inflation, so they change each year slightly, based on the Consumer Price Index (CPI). I am running a few minutes late; my previous meeting is running over.
Medicare will pay their 80% share of approved services once you have met the $283 Annual Part B Deductible. Your Supplement will not pay until you reach the annual deductible amount of $2,950. After that, your Supplement will pay their 20% share for the rest of your Medicare-approved services through December 31st each Calendar Year.
Beneficiaries must cover the Medicare Part B deductible of $283 in 2026 and the minimum of $2,950 (which includes the $283) before their High-Deductible plan begins paying. At this point, the plans will act as Regular Plan G or Plan F, but the monthly premiums are 60-75% lower than those for Regular Plan G and Plan F.
High-deductible options offer some flexibility, especially for beneficiaries who are relatively healthy and do not anticipate high medical expenses. These plans are available in certain states, offering a viable high-deductible option for cost-conscious beneficiaries.
However, it’s essential to weigh the potential savings in monthly health insurance premiums against the risk of high out-of-pocket costs in the event of unexpected medical needs, especially if you are looking to maintain the same premium when choosing a Medicare supplement plan.
MEDICARE CO-INSURANCE & CO-PAYS
Coinsurance and copayments are crucial components of Medigap plans, referring to the share of medical costs beneficiaries pay out of pocket after meeting deductibles. Medigap plans play a crucial role in covering these costs, thereby reducing the financial burden on beneficiaries. For example, after meeting the deductible, a Medigap policy can cover coinsurance costs, significantly lowering out-of-pocket expenses.
Different Medigap plans offered by supplemental insurance companies provide varying levels of coverage for these expenses, including medical bills. For instance, Medigap Plan N covers most Part B services but requires copayments for certain office visits (Office Visit Costs range from $0 - $20, depending on which code the provider uses; many clients pay $0).
The best plan for you is the one that offers the quality of care and coverage you desire at the lowest monthly premium. The most popular Medicare Supplement plans in the United States are:
Plan G
Plan F
Plan N
Plan C
HDG
Original Medicare covers 100% of Chemotherapy and Radiation for Cancer Treatment, whereas Medicare Advantage Plans require a 20% Copay for both.
OUT-OF-POCKET COSTS & OUT-OF-POCKET LIMITS
Out-of-pocket limits are a safeguard that can provide beneficiaries with peace of mind by capping their annual healthcare expenses. In 2026, the out-of-pocket limit for Medicare Supplement Plan K is $8,000, while for Plan L it is $4,000. These limits are designed to protect beneficiaries from catastrophic costs by ensuring that, once the limit is reached, the plan pays all remaining covered service costs for the rest of the year.
Plan K and Plan L have different cost-sharing structures before reaching these limits. The only difference is that Plan K requires beneficiaries to cover 50% of the costs for covered services, whereas Plan L requires only 25%. These differences affect overall out-of-pocket expenses, so consider how much you’re willing to pay before the plan covers all costs.
These out-of-pocket limits are subject to annual adjustments based on inflation and health care cost estimates, reflecting the dynamic nature of healthcare expenses. Monitoring these adjustments with the guidance of insurance commissioners helps new beneficiaries stay informed about their potential financial responsibilities.
THINGS THAT INFLUENCE MEDIGAP PREMIUMS
Several factors influence the cost of Medicare Supplement plans, and understanding them can help beneficiaries make more informed choices. Key factors include:
Age
Gender
Residential area
Smoking status
For instance, premiums can vary widely by location, with different markets showing different price ranges.
Tobacco use is another critical factor, often resulting in higher premiums due to the associated health risks. Additionally, the specific Medigap plan selected plays a significant role in determining overall premium costs. Plans with more comprehensive coverage typically come with higher premiums, while those with cost-sharing options may offer lower premiums but higher out-of-pocket costs.
State regulations also impact how much insurers can charge for Medigap policies, particularly for beneficiaries under age 65. This regulatory landscape can vary, so it’s essential to be aware of the rules in your state when selecting a Medigap plan. Insurance companies may also set premiums differently depending on these factors.
COMPARE MEDIGAP PLANS SIDE-BY-SIDE
Comparing different Medigap plans is crucial for finding the one that best meets your needs. Plan G, for instance, is popular for its comprehensive coverage, paying for the Part A deductible and all cost-sharing for Part A and B services, except the Part B deductible. In contrast, Plan N covers most Part B services but requires copayments for certain office and emergency visits.
Some Medigap plans offer additional coverage, including supplemental coverage for:
Vision
Dental care
Long-term care: Innovative benefits such as:
Hearing coverage
24/7 nurse phone lines are also available in some plans, offering added value. However, it’s essential to regularly review your healthcare needs to ensure you’re selecting the most appropriate Medigap insurance plan or Medigap policy as your situation changes.
Plan G’s popularity is evident, with 39% of policyholders selecting it in 2023, indicating its favorable balance of cost and coverage. However, plans with greater benefits often come with slightly higher premiums, so you should carefully assess your healthcare needs and budget. When choosing a medicare supplement plan, understanding these differences is key.
RATING METHODS FOR MEDICARE SUPPLEMENT PLANS
Understanding the premium rating methods insurers use helps beneficiaries anticipate future costs. There are three main rating methods for Medigap plans: community-rated, issue-age-rated, and attained-age-rated. In community-rated plans, premiums are set based on geographic location, ensuring the same monthly premium for everyone in that area, regardless of age; in issue-age-rated plans, premiums are set based on age at enrollment; and in attained-age-rated plans, premiums are set based on age at enrollment.
Issue-age-rated policies set premiums based on the applicant’s age at enrollment, preventing increases solely due to aging. In contrast,attained-age-rated policies determine premiums based on the insured’s current age, leading to higher costs as they age. Knowing which method your insurer uses can help you predict how your premiums might change over time.
HOW YOU CAN LOWER YOUR MEDIGAP COSTS
Reducing Medigap costs requires strategic planning and smart choices. Selecting the right Medigap plan or medigap policy that aligns with your healthcare needs and budget is an effective strategy. If Plan G is too expensive, consider alternatives like the High-Deductible Plan G or Plan N, which offer lower premiums.
Avoiding late enrollment penalties and shopping around for the best rates annually can also lead to significant savings. Various discounts are available for Medigap premiums, including those associated with preventive services:
Household discounts
Online application discounts
Automatic/electronic funds transfer/prepayment discounts
Multi-policy discounts.
Taking advantage of these paid discounts can help manage your overall health care expenses more effectively.
MEDICARE ADVANTAGE VS MEDICARE SUPPLEMENT PLANS
When comparing Medicare Advantage plans and Medicare supplement plans, cost is a key factor to consider. Medicare Advantage plans typically have lower monthly premiums than Medigap policies, and some may even offer $0 premiums. However, these plans come with network restrictions and may require copayments or coinsurance for certain services, which can increase out-of-pocket costs depending on your health needs.
On the other hand, Medicare Supplement plans generally have higher monthly premiums but offer more predictable costs by covering many deductibles, copayments, and coinsurance that Medicare Advantage plans may not fully cover. Medigap policies allow beneficiaries to see any provider that accepts Medicare, providing greater flexibility. If you are considering switching from Medicare Advantage to Medicare Supplement Insurance, there are specific enrollment periods and processes to be aware of.
Ultimately, the choice between a Medicare Advantage plan and a Medicare Supplement plan (Medigap policy) depends on balancing monthly premium costs with potential out-of-pocket expenses, your preference for provider choice, and your overall health care needs.
For many people, a Medicare Advantage plan suits them. However, if you ask any Broker or Healthcare Professional, they may refer to Medicare Advantage as Medicare DIS-ADVANTAGE, which should tell you all you need to know.
Lastly, in Arizona, Barrow Neurological Institute and the Mayo Clinic both accept Original Medicare and Medicare Supplement/Medigap plans. But neither of them accepts any Medicare Advantage plans. This is the same for 99.9% of all of the renowned "Teaching" hospitals across the country.
ADDITIONAL OR EXTRA BENEFITS COST YOU IN THE LONG RUN
While additional benefits in Medigap plans can be attractive, they often come with higher premiums. Only a small percentage of Medigap plans offer extra benefits like vision, dental, and hearing, and they cover only a limited number of enrollees. Most beneficiaries who have access to these additional benefits typically choose a comprehensive plan, such as Medicare Supplement Plan G.
Please do not be suckered into purchasing a Medicare Supplement from an insurer that offers a free Gym Membership. I am all for staying active, but you will leave more money on the table doing this than just purchasing a membership at the Fitness Center/Gym where you live.
Here is some information that I am sure no one has ever mentioned to you. Did you know that AARP Medicare Supplements have a declining discount, so it is great when you first enroll, but then the discount drops 1-2% per year, while premiums increase, which is not a healthy recipe for your wallet. And you have to have an AARP Membership to apply, which costs an additional $16 per year.
These additional benefits can complicate the decision-making process and may not always be clearly communicated to beneficiaries. Weighing the added costs against the potential benefits helps determine whether these extra coverages are worth the higher premiums and provide more coverage, offering the same benefits and full benefits.
ENROLLING IN A MEDICARE SUPPLEMENT PLAN
Enrolling in a Medicare supplement plan involves understanding the timing and conditions for enrollment. If you’re looking for a guide on signing up for Medicare Part D, see how to sign up for Part D Medicare. If you are wondering whether you must enroll in Medicare if you live abroad, consult our detailed resource:
The enrollment window begins the month you turn 65 and enroll in Medicare Part B.
This window lasts for six months.
During this open enrollment phase, individuals can select any Medigap policy without medical underwriting.
Guaranteed issue rights allow individuals to purchase Medigap plans outside the open enrollment period under specific conditions. Retirees should consider switching Medicare supplement plans during open enrollment to obtain better rates or coverage that best fits their current needs.
Based on my experience over the past 11 years, the combination of Original Medicare/Traditional Medicare and a Medicare Supplement Plan G is the best, most complete, and most comprehensive healthcare available!
WRAPPING THINGS UP
I know Medicare can be very confusing, with a lot of moving parts. If you have any specific questions about Medicare Supplement (Medigap) Plans that this article did not address, please reach out to me. I want to make sure you get all of the answers to all of your questions. You can email me directly at mike@bradenmedicare.com, text or call me at (480) 225-1393, or use the contact form on our website at www.bradenmedicare.com anytime.
Based on my experience over the past 11 years, the combination of Original Medicare/Traditional Medicare and a Medicare Supplement Plan G is the best, most complete, and most comprehensive healthcare available!
