A "good" Medicare Supplement plan (Medigap) typically costs between $90 and $300 per month, with popular plans like Plan G and Plan N often falling in this range. Prices vary widely based on your location, age, and chosen insurance carrier.
Takeaways
The bottom line. Medicare supplemental insurance premiums in 2025 typically range from about $32 to $550 per month, with most beneficiaries paying somewhere in the middle of that range depending on their plan choice, age, location and other factors.
For comparison, the Centers for Medicare and Medicaid Services completed almost 400,000 prior authorization reviews for Original Medicare in 2023 and denied 28.8%, or 113,448 of requests received. Centene and CVS Health Medicare Advantage plans had the highest denial rates for prior authorization requests.
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The 80/20 Rule generally requires insurance companies to spend at least 80% of the money they take in from premiums on health care costs and quality improvement activities. The other 20% can go to administrative, overhead, and marketing costs. The 80/20 rule is sometimes known as Medical Loss Ratio, or MLR.
You will typically pay less for an issue-age-rated plan if you enroll in the plan when you're younger. Your premiums also won't increase based on your age. Attained-age-rated Medigap plans set their premiums based on your current age. As you age, your Medigap plan premiums will gradually increase each year.
Plan G offers comprehensive coverage, including Medicare Part B excess charges. This plan does not cover the Medicare Part B deductible.
The only difference between Plan D and Plan G is that Part B excess charge coverage. So if you're deciding between the two, your decision will likely depend on how important that excess charge coverage is to you.
With Medicare Supplement Plan F, you get the most complete coverage available. And because Plan F also covers costs in excess of Medicare-approved amounts, you may have no out-of-pocket costs for hospital and doctor's office care.
You may enroll in a $0 monthly premium Medicare Advantage plan during the Initial Coverage Election Period (ICEP). This period may run parallel with your IEP, as it also begins 3 months before you turn 65 when you choose to enroll in both Medicare Parts A and B.
The key difference between Plan N and Plan G is how they handle out-of-pocket costs. Plan G covers nearly all Medicare gaps, including Part B excess charges. This means beneficiaries don't pay additional fees for doctors who charge more than Medicare-approved amounts.
The downside of high-deductible Plan G can be, of course, your upfront cost before you receive help with out-of-pocket expenses. Assuming you have this high-deductible Medigap plan and receive a Medicare Part B-covered service, you'll be responsible for the Part B deductible, which is $257 in 2025.
Medicare Advantage (Part C) plans offer all the benefits of Original Medicare (Part A and Part B), with extras like dental, vision, hearing, and prescription drug coverage. Chronic Special Needs plans (C-SNPs) are designed for people living with qualifying chronic conditions.
One of the most significant drawbacks of supplemental insurance policies is the coverage limits. For instance, with Mechanical Repair Coverage, you'll typically need to pay out of pocket until your deductible is met on your primary policy before supplemental insurance takes over to cover a costly vehicle repair.
Wellcare's plans have the lowest average premiums and highest quality ratings. But Humana offers $0 premiums in more states than any competitor, and its Value Rx plan comes with $0 out-of-pocket costs on multiple drug tiers. The best Medicare drug plan for you is one that covers your drugs at an affordable cost.
If you prefer no medical bills beyond your premiums, Plan F may be the better fit—but only if you were eligible for Medicare before 2020. If you're looking for premium savings and don't mind covering a small out-of-pocket deductible, Plan G offers nearly identical coverage with lower monthly prices.
There are 10 different types of Medigap policies (labeled A through N), each having a different, standardized set of benefits (Appendix Table 3). Plan G is the most popular Medigap policy, accounting for 39% of all policyholders, or nearly 5.3 million people, in 2023 (Figure 3).
Medigap doesn't cover everything. Medigap plans generally don't cover: Long-term care (like care in a nursing home) Vision or dental care.
Medicare Supplement Plans F, G, and N have different cost structures, which can impact your out-of-pocket expenses. Plan F typically has the highest premium among the three plans, but it offers the most comprehensive coverage, including coverage for Medicare Part B excess charges.
Maximum out-of-pocket drug cost
The out-of-pocket maximum for a Medicare Part D prescription drug plan is $2,100 in 2026.
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Evaluate key factors like provider networks, out-of-pocket costs, HMO vs. PPO plans, and prescription medication coverage to make the best choice for your situation. Consider plan additions like HSAs or FSAs to offset healthcare costs, and check eligibility for these accounts based on your selected plan.