HOW TO COPE WITH MEDIGAP PREMIUM INCREASES

Michael T. Braden May 14, 2026 MEDIGAP PREMIUMS

COPING WITH THE FACT YOUR MEDIGAP PREMIUMS ARE INCREASING; WHAT CAN YOU DO?

In today’s article, we are going to pull back the curtain and take a look at the recent alarming trend of Medigap premium increases over the past few years, and especially what has happened so far in 2026.  We will explain the insurance company’s logic and examine the options you have to address these increased costs. I honestly believe that a good portion of the increases is driven by the current state of the economy and the “Greed Factor” among some insurers.  But there is also some truth to the claim that companies are paying out more in claims due to the huge increase in Baby Boomers enrolling in Medicare over the past decade.

Photo Of Braden Medicare Insurance's Medigap Rate Increases In 2026 Poster

MEDICARE SUPPLEMENT PLAN G AND PLAN F PREMIUMS CONTINUE TO RISE SHARPLY IN 2026.

Over 12 million Americans carry Medigap policies to help cover the gaps that Original Medicare leaves behind, such as deductibles, coinsurance, and Medicare cost-sharing. For years, annual premium increases were modest. That has changed. In early 2026 rate filings, Medigap Plan G premiums rose between 12% and 26% across many states. Some increases were even steeper. INA has filed increases as high as 45% in certain markets, and that is their 2^nd increase in 2026.  Last year, BCBSAZ, M of O, and AARP/UHC had the highest increases of all carriers in Arizona. The average monthly Plan G premium was around $164 in 2023, meaning these surges translate to real, meaningful dollars out of your pocket each month.

This article explains why premiums are climbing so sharply, what your options look like, and the concrete steps you can take to protect your coverage and your budget.

WHY HAVE MEDICARE SUPPLEMENT/MEDIGAP PREMIUMS RISEN SO DRAMATICALLY THE PAST 2-3 YEARS?

The short answer is that insurers are paying out more in claims, and those costs are being passed on to policyholders. But several specific factors are converging to make 2026 particularly sharp.

First, the Medigap population is aging. People who enrolled in Plan G years ago are now in their mid-to-late 70s and using significantly more healthcare services. Claims volume is rising, and insurers must adjust premiums to remain actuarially sound.

Second, healthcare labor costs surged in the post-pandemic years and have not fully retreated. Hospital stays, specialist visits, and outpatient procedures all cost more today than they did in 2021 or 2022.

Third, and this is a factor many beneficiaries don’t hear about, some enrollees are switching from Medicare Advantage back to Medigap. These are often sicker individuals who found MA’s network restrictions and prior authorization requirements limiting. When they move back to Medigap, they bring higher claims with them.

Major insurers, including UnitedHealthcare, Aetna, Humana, Blue Cross Blue Shield, Cigna, and Mutual of Omaha, are relying on actuarial firms such as Telos Actuarial to justify these filings. Historically, annual Medigap Plan G increases have ranged from 3% to 6%.

MEDIGAP RATE INCREASES ARE HAPPENING COAST TO COAST, WITH THE NORTHEAST, EAST, AND WEST COASTS SEEING THE LARGEST INCREASES

Rate filings reviewed through early 2026 show Plan G increases clustering between 12% and 26%, though the range varies considerably by state and carrier. Some states with more aggressive regulatory oversight, like New York and Massachusetts, have seen smaller approved increases, while states with lighter-touch review processes have seen larger jumps pass through.

Illinois, Alaska, and Ohio stand out in the data as states where multiple carriers filed double-digit increases. State insurance commissioners play a critical gatekeeping role here: they review insurer filings, can request justification, and in some cases reject or modify proposed rates.

Plan G isn’t the only plan seeing pressure. Plan N premiums have also risen, though generally at a slower rate. High-Deductible Plan G remains a notably lower-cost option; premiums can run $40 to $70 per month in many markets, but it comes with a deductible of approximately $3,000 before coverage kicks in fully.

Plan F, once the most popular Medigap option, is no longer available to beneficiaries who became eligible for Medicare after January 1, 2020. Those already enrolled can keep it, but new enrollees must choose from the remaining plan types.

LET'S TAKE A LOOK AT YOUR OPTIONS TO COUNTERACT THE PREMIUM INCREASES YOU HAVE NO CONTROL OVER

First, let's remember that the purpose of any insurance is to find someone who will take on the lion's share of your risks. In this case, your healthcare costs. You are charged a premium to keep yourself and your loved ones from catastrophic loss.  With retirement, there is perhaps no bigger potential for loss than healthcare costs. You do have options, but perhaps the best option is to agree to share more of the risks with your insurance partner in exchange for lower premiums or fewer benefits.

YOU HAVE OPTIONS TO REDUCE YOUR PREMIUMS BY LOOKING AT PLAN N, PLAN G, AND THE HDG (HIGH-DEDUCTIBLE PLAN G)

When your Plan G premium jumps significantly, it’s worth understanding exactly what alternatives exist. Here is a structured look at the three most commonly considered options:

COVERAGE	PLAN G	PLAN  N	HDG (High-Deductible Plan G)
Estimated Monthly Premium (2026)	$160–$250+	$110–$175	$40–$70
Part B Deductible Covered	No	No	No (after deductible met)
Doctor Visit Copays	None	Up to $20 copay	None (after deductible)
ER Copay	None	Up to $50 copay	None (after deductible)
Annual Deductible	None	None	$2,950 (The $283 Part B  Deductible Is Included)
Part B Excess Charges Covered	Yes	No	Yes (after deductible)

Plan N is gaining traction among beneficiaries who regularly see doctors but want meaningful premium relief. The small copays are manageable for most, and the monthly savings compared to Plan G can be $50 to $80 or more.

High-Deductible Plan G works best for beneficiaries who are relatively healthy and want a financial backstop for major events rather than routine coverage. Assessing which plan fits your situation means honestly evaluating how often you use care and how much financial risk you can absorb in a given year. You can explore strategies to reduce supplement costs as part of that review.

HOW CMS AND YOUR STATES INSURANCE DEPARTMENTS CAN HELP YOU WITH OVERSIGHT:

The Centers for Medicare & Medicaid Services (CMS) sets federal standards for what each Medigap plan letter must cover. This means a Plan G sold in Texas covers the same benefits as one sold in Oregon. What CMS does not control is the premium insurers charge for those standardized plans.

That responsibility falls to state insurance commissioners. Each state has its own rate approval process. In states with prior approval requirements, insurers must submit actuarial justification before any increase takes effect. In states with file-and-use rules, an increase can take effect before formal approval, with review occurring afterward.

A persistent underlying issue is that Traditional Medicare has no out-of-pocket maximum. Without Medigap, a beneficiary undergoing a prolonged hospital stay could incur tens of thousands of dollars in out-of-pocket costs.

This structural gap in Original Medicare makes Medigap essential for many people, but it also means demand remains inelastic, giving insurers less pricing pressure from the market. Legislators, including Sen. Ron Wyden, have proposed federal out-of-pocket caps for Traditional Medicare, which could reduce the need for Medigap and potentially moderate premiums over the long term. Still, no such legislation has been enacted as of mid-2026.

LOOK INTO WHETHER OR NOT YOUR STATE HAS ADOPTED A MEDICARE BIRTHDAY RULE

Your ability to switch Medigap plans depends heavily on timing and where you live. Outside your Initial Enrollment Period, insurers can generally use medical underwriting, meaning they can charge more or decline coverage based on your health history. That’s a significant barrier for many beneficiaries with chronic conditions.

However, several states offer important protection. The “Medicare Birthday Rule,” available in many states including California, Colorado, Washington, Oregon, Idaho, New Mexico, Ohio, Kentucky, Maryland, Illinois, Virginia, New York, Connecticut, Massachusetts, Maine and Nevada, allows Medicare beneficiaries to switch to a comparable or lesser plan around your birthday each year without underwriting. This is extremely valuable as we age.  For those of you who have homes in two states, it makes sense to make the state that has a “Birthday Rule in place your primary residence.  Yes, your premiums may be a little higher, but the security of being able to switch plans every year without the need to pass Medicare Underwriting is potentially worth its weight in gold.

Even if you cannot switch today, comparing plans annually builds your understanding of the market. You’ll know what comparable coverage costs elsewhere, and you’ll be positioned to act quickly during any future guaranteed issue window.

Independent Medicare Brokers who represent multiple carriers are particularly valuable here; they can run side-by-side comparisons across insurers and flag rate increase histories that aren’t obvious from a single quote.

AS YOU AGE, YOU MIGHT CONSIDER A MEDICARE ADVANTAGE PLAN

Medicare Advantage is often the first alternative that comes to mind when Medigap premiums feel unsustainable. MA plans typically have lower monthly premiums, many $0-premium options still exist in 2026, and they include an annual out-of-pocket maximum, which Traditional Medicare lacks.

The trade-offs are real, though. MA plans operate within provider networks, meaning your current doctors may not be covered. Prior authorization requirements can delay or complicate access to specialty care.

If you enroll in Medicare Advantage and later want to return to a Medigap plan, you’ll typically face medical underwriting in most states.

A health condition you developed while on MA could make it difficult or even impossible to qualify for Plan G coverage at a standard rate. That asymmetry- easy to leave Medigap, hard to come back- is a factor worth weighing carefully before making the switch. You can review how switching from MA to Medigap works before making any decisions.

I am a firm believer that giving up control of your own healthcare to a corporation, in this case an Insurance company, is not prudent.  And with the high MOOP (Maximum Out-of-Pocket) limits, there is a strong argument for keeping Original Medicare and adding a High-Deductible Plan G (HDG) rather than switching to a Medicare Advantage plan (Medicare Part C).

FREQUENTLY ASKED QUESTIONS REGARDING MEDICARE SUPPLEMENT/MEDIGAP PREMIUM INCREASES

HOW MUCH WILL MY PLAN G PREMIUM INCREASE IN 2026?

There is no way to guarantee where your premiums will be at the end of 2026. Medigap Plan G premiums have been increasing 10%-45% in many states. Some individual carriers have had multiple increases already in 2026, with a handful of insurers increasing their Plan G premiums by over 30%.  It is important to remember that the actual increase you face depends on your carrier, your state, and your age-rating method.

WHY IS MY PREMIUM PRICE SKYROCKETING OVER THE PAST TWO YEARS?

Your Medigap Plan G premium is likely to increase due to several converging factors. These include higher claims from an aging Medigap population, increased healthcare and labor costs, and a wave of sicker beneficiaries switching back from Medicare Advantage. Insurers are adjusting rates to keep plans financially viable based on actuarial projections.

AM I ALLOWED TO SWITCH PLANS OR FIND A DIFFERENT INSURANCE COMPANY TO PARTNER WITH?

Yes, you can switch Medigap plans, but your ability to do so without medical underwriting is limited. You can switch without medical underwriting during your Initial Enrollment Period or if your state offers guaranteed-issue rights, such as the Birthday Rule. Outside those windows, most states allow insurers to apply medical underwriting, which can limit your options if you have preexisting conditions.

WHERE CAN I GET FAIR AND UNBIASED OPTIONS TO UNDERSTAND MY MEDICARE OPTIONS BETTER?

You can get unbiased help with your Medigap options from several reliable sources. Contact your State Health Insurance Assistance Program (SHIP) for free, non-sales counseling. You can also work with an independent Medicare broker, like Braden Medicare Insurance Services; we represent multiple carriers and can compare rates and plan structures across your available options.

WRAPPING THINGS UP

The sheer rate of Medicare Supplement (Medigap) premium increases has been alarming over the past 24 months.  Plan F AND Plan G have had the highest percentage of increases, while Plan N and the High-Deductible Plan F and High-Deductible Plan G have remained virtually unchanged. The 12% to 40% Medigap Plan G premium increases hitting beneficiaries in 2026 represent a real financial challenge, one that rewards preparation over passivity. Reviewing your current plan, understanding your state’s switching rules, and comparing alternatives like Plan N or High-Deductible Plan G are all steps worth taking now, not at renewal time.

Free resources like SHIP counselors and independent brokers exist precisely to help you sort through these decisions without pressure. Your coverage choices directly shape your healthcare stability, and understanding those choices is the most important thing you can do this year.

As always, if you want to discuss your options and you're not sure who to call, please feel free to reach out to me anytime. You can reach me via email atm mike@bradenmedicare.com;

 call or text me at (480) 225-1393; and submit an inquiry on our website at www.bradenmedicare.com 24 hours a day.