What it is
A Medigap premium is the monthly amount you pay a private insurance company for a Medicare Supplement policy. Medigap plans help pay some costs that Original Medicare does not, such as certain coinsurance, copayments and deductibles. Because private companies sell them, each carrier sets its own rates.
Premiums can rise over time for several reasons. Medical care and services tend to cost more as years pass, and a carrier may adjust rates to keep up with the claims it pays. Inflation, how often members use care, and changes in the size and makeup of a carrier's group of policyholders can all play a part.
The way a carrier prices a policy also matters. Some use attained-age pricing, where the premium may rise as you get older. Some use issue-age pricing, where it is based on your age when you bought the policy. Some use community rating, where the price is not based on age. Which method applies depends on the carrier and the state. Massachusetts, Minnesota and Wisconsin standardize Medigap differently from most states.
How it’s traditionally been approached
Many people have traditionally reviewed their Medigap premium once a year, often when a renewal or rate notice arrives. They look at what changed, what the policy covers, and whether it still fits their needs and budget.
Some people stay with the same plan and carrier because they value consistent coverage and the freedom to see any provider that accepts Medicare. Others compare the same lettered plan from different carriers, since benefits for a given letter are standardized while prices can differ. Plans sold to people newly eligible for Medicare include A, B, D, G, K, L, M and N, plus high-deductible Plan G. Plans C and F are only available to people who became eligible before January 1, 2020. Plans E, H, I and J were discontinued and are not sold today.
Others look at a different kind of coverage altogether, such as Medicare Advantage. It often has lower premiums, an annual out-of-pocket maximum, extra benefits and drug coverage in many plans, but it can come with networks, prior authorization and copays. Medigap offers predictable cost-sharing and no network, but generally has higher monthly premiums, needs a separate Part D plan for drugs, and does not include routine dental, vision or hearing. Neither is wrong; it depends on the person.
How the right licensed agent may help
A Medigap agent may help you understand why your premium changed. They can explain whether the carrier uses attained-age, issue-age or community rating, and how that may affect what you pay in the future. A good agent can help you see the full picture rather than just one number.
A visit or call is generally a relaxed conversation. You may be asked which plan letter you have, how you use care, and what matters most to you, such as freedom to choose doctors or keeping costs predictable. An agent may then show how similar plans from other carriers compare. Switching is not always possible or a good idea, so it helps to ask about it carefully.
Good questions to ask include: How does this carrier set and adjust rates? Would I face medical underwriting if I changed plans? Do any state rules or guaranteed issue rights apply to me? What would I give up or gain by switching? Rules vary by state and change over time, so confirm current details with Medicare.gov, your State Health Insurance Assistance Program (SHIP), or a licensed agent. Call 1-800-MEDIGAP for more information.
The bigger picture
A rising premium can feel stressful, especially on a fixed income. Worry about monthly bills can affect sleep, mood and how comfortable you feel seeking care. Understanding why the change happened may help you feel more in control and less caught off guard.
Peace of mind often comes from knowing your options and making choices that fit your life, not from chasing the lowest price alone. Taking your time, asking questions and talking with trusted family can help. If you are also looking for care providers, Providers.plus may be a helpful resource.
Keep in mind
- This page is educational only and is not insurance, legal, tax or medical advice.
- 1-800-MEDIGAP is independent and privately run. It is not connected with or endorsed by the U.S. government or the federal Medicare program. Official information is at Medicare.gov.
- Premiums vary by carrier, state, age and plan, and no plan can be promised as best or as the cheapest.
- Open enrollment, guaranteed issue and switching rules vary by state and change over time. Confirm current rules before making a change.
Take the next step
- Talk with a Medigap agent ↗Jeff Cline on contacts.plus — a person, not a call center.
Not sure where to start? Answer a few gentle questions and choose who you’d like to hear from.
Call 1-800-MEDIGAP for more information
Frequently asked questions
Why do Medigap premiums go up every year?
Medigap premiums commonly rise because healthcare costs rise and carriers adjust rates to match the claims they expect to pay. Your age may also matter, depending on how the carrier prices the policy. Not every policy changes the same way or by the same amount.
Do Medigap premiums go up with age?
They can, depending on the pricing method. With attained-age pricing, premiums may rise as you get older. With issue-age or community-rated pricing, age works differently. Ask the carrier or a Medigap agent which method your policy uses.
Can a company raise my Medigap premium because I have health problems?
Generally, rate changes are based on groups of policyholders, not on your personal health after you are covered. Health history may matter when you apply outside open enrollment or guaranteed issue periods. Rules vary by state, so confirm with your SHIP or a licensed agent.
Can I switch Medigap plans if my premium goes up?
Often you can apply to change, but acceptance is not guaranteed. Outside open enrollment or guaranteed issue, the carrier may ask health questions, which is called medical underwriting. Some states have extra rules, so check current details before dropping existing coverage.
Is Plan G or Plan N premium likely to go up too?
Any Medigap plan, including Plan G and Plan N, can see premium changes over time. Benefits for each letter are standardized, but carriers set their own prices and pricing methods. Comparing carriers for the same letter may help you understand the differences.
Is Medicare Advantage a way to avoid rising premiums?
Not necessarily. Medicare Advantage plans often have lower premiums and an out-of-pocket maximum, but they have networks, prior authorization and copays, and plan costs and benefits can change each year. Medigap offers broader provider choice and predictable cost-sharing, with generally higher premiums. The right choice depends on your needs.
Educational resource. 1-800-MEDIGAP shares general information and connects people with independent licensed agents. It is not professional advice. Talk with a qualified professional about your own situation.