If you’re exploring Medicare Supplement options, you’ve likely heard about Plan G and are wondering about the cost. You clicked here to find out how much Plan G costs in your state and what surprising factors might affect your premium. This guide breaks down everything you need to know, explaining why prices vary so much and what you can expect.
Before diving into costs, let’s quickly review what Plan G is. Medicare Supplement Insurance, also known as Medigap, helps pay for some of the out-of-pocket costs that Original Medicare (Part A and Part B) doesn’t cover, like deductibles, copayments, and coinsurance.
Plan G is one of the most comprehensive and popular Medigap plans available. It covers nearly all the gaps in Original Medicare. After you pay the annual Medicare Part B deductible, Plan G covers:
The only major gap it doesn’t cover is the annual Medicare Part B deductible. In 2024, that deductible is $240. Once you’ve paid that amount for the year, Plan G’s coverage kicks in for approved services.
The most important thing to understand is that there is no single price for Plan G. The premium you pay is determined by a combination of factors. Insurance companies use this information to calculate your specific monthly rate.
This is the biggest reason for price differences across the country. A Plan G policy in New York City will almost always cost more than the exact same policy in a rural part of Iowa. This is because the cost of healthcare services varies significantly by region. Higher local healthcare costs typically lead to higher Medigap premiums. Competition among insurance companies in your area also plays a role.
Your age when you first enroll in a Medigap plan is a critical factor. Generally, the younger you are when you sign up, the lower your initial premium will be. How your premium changes over time also depends on the plan’s pricing method, which we’ll discuss next.
This is one of the most surprising factors for many people. Medigap plans are standardized by the federal government. That means the coverage offered by Plan G from Company A is identical to the coverage from Company B. However, their prices can be vastly different. It’s common to see premiums for the same Plan G in the same ZIP code vary by over $100 per month between different insurers. This is why shopping around is so essential.
This is a technical but crucial detail that can surprise you. Insurance companies use one of three methods to price their policies, which affects how your premium changes as you get older:
Because premiums depend on your specific details, we can’t give you an exact quote. However, we can provide realistic monthly premium ranges for a 65-year-old non-smoker to illustrate how much costs can vary by state. These are estimates and can change based on your specific circumstances.
Important Note on Specific States: A few states standardize their Medigap plans differently. Massachusetts, Minnesota, and Wisconsin have their own systems, so “Plan G” may not exist there, but they will have a plan with very similar benefits.
The ad mentioned you might be surprised, and when it comes to Medigap, many people are. Here are a few things that often catch consumers off guard.
Surprise #1: The Price Difference for an Identical Plan As mentioned earlier, the biggest shock for most is seeing two different companies offer the exact same, government-standardized Plan G for wildly different prices. One company might charge \(150 per month while another, right across the street, charges \)250. There is no difference in benefits. The only difference is the price and the company’s reputation for customer service and rate stability.
Surprise #2: The Long-Term Impact of the Pricing Method Many people choose a plan based on the lowest initial premium, which is often an attained-age-rated plan. They are then surprised when their rates increase steadily each year. Understanding whether your plan is attained-age, issue-age, or community-rated is critical for predicting your long-term healthcare budget.
Surprise #3: You Can’t Be Denied During Your Open Enrollment Period When you first become eligible for Medicare Part B at age 65, you get a six-month Medigap Open Enrollment Period. During this window, insurance companies cannot deny you coverage or charge you more based on your health history. This is your one guaranteed-issue right to buy any Medigap plan you want. If you miss this window, you may have to go through medical underwriting and could be denied coverage or charged a higher premium.
What is the main difference between Plan G and Plan F? Plan F was once the most popular plan because it covered everything, including the Part B deductible. However, Plan F is no longer available to people who became eligible for Medicare on or after January 1, 2020. For those who can still choose, the only difference is that Plan G does not cover the Part B deductible ($240 in 2024), while Plan F does. Often, the annual savings in premiums for Plan G is more than the cost of the deductible, making Plan G a better value.
When is the best time to enroll in Plan G? The best time is during your six-month Medigap Open Enrollment Period, which starts on the first day of the month you are both 65 or older and enrolled in Medicare Part B. Enrolling during this time gives you guaranteed-issue rights.
Does Plan G cover prescription drugs? No. Medigap plans sold after 2006, including Plan G, do not include prescription drug coverage. You will need to enroll in a separate Medicare Part D plan for your prescription medications.