What's the price tag for Medigap?
News Article: Understanding Medigap Plan Premiums for 2025
As many seniors approach their 65th birthday and prepare to enroll in Medicare, understanding the costs associated with various Medigap plans is essential. Here's a breakdown of average Medigap plan premiums for 2025, as well as what each plan covers.
Medigap plans are supplemental insurance policies designed to help cover the costs that Original Medicare does not. There are ten standardised Medigap plans (labelled A through N) available, each with its own set of benefits. The monthly premium is the only difference in price between policies with the same plan letter, regardless of the insurance provider.
The most popular Medigap plan is Plan G, with nearly 5.3 million people enrolled in 2023. On average, Plan G premiums are approximately $159 per month for a 65-year-old woman nonsmoker. Other average premiums by Medigap plan letter nationally are as follows:
| Plan Letter | Average Monthly Premium | |--------------------|------------------------| | Plan A | $151 | | Plan B | $195 | | Plan C | $221 | | Plan D | $177 | | Plan F | $199 | | High-deductible F | $54 | | Plan G | $159 | | High-deductible G | $49 | | Plan K | $83 | | Plan L | $126 | | Plan M | $143 | | Plan N | $121 |
These premiums vary significantly by state due to local market conditions, regulation, and competition, as well as by insurer. For example, Nebraska had the largest year-over-year increase for Plan G premiums, rising 13%, while New Mexico saw a slight decrease of $1 on average.
Plan K, which covers 50% of the Medicare Part A deductible (currently $1,676 in 2025), has an out-of-pocket limit of $7,220. Once this amount is reached, Medigap will pay for 100% of the costs for approved services for the rest of the year. On the other hand, Plan C requires a person to pay Part B excess charges and 20% of foreign travel emergency care.
It's important to note that since 2020, new enrollees must always pay the Part B deductible, which means that Plan C and Plan F are not available to new enrollees. Plan F, which covers the Part A deductible, coinsurance, and 80% of foreign travel emergency care, is available as a high-deductible version, which requires a person to pay the total plan deductible of $2,870 before coverage kicks in.
To help people choose the Medigap plan that best suits their individual needs, the government provides free resources such as the SHIP program. Additionally, the online tool on the Medicare site helps people search for Medigap providers in their area and compare plans. However, it's essential to keep in mind that while a person must be enrolled in Original Medicare to be eligible for a Medigap plan, they cannot have a Medicare Advantage plan at the same time.
In summary, while national plan letter averages provide a useful reference, actual Medigap premiums differ considerably by state and insurer. The 2025 average Plan G premium ranges roughly from $140 to $180+ depending on the state, exemplifying regional variation. For precise premiums by plan letter for all states, consulting state-specific or insurer-specific rate tables may be necessary. To get impartial advice about Medigap plans, seniors can call 800-MEDICARE or contact the State Health Insurance Assistance Program.
- Understanding the costs of various Medigap plans is crucial for seniors, especially as they prepare for Medicare enrollment in 2025.
- Each Medigap plan offers different benefits, and the only difference in price between policies with the same plan letter is the monthly premium.
- The average monthly premium for Plan G, the most popular Medigap plan, is approximately $159 for a 65-year-old woman nonsmoker, but premiums can vary significantly by state.
- The financial benefits of Medigap plans include helping cover the costs that Original Medicare does not and providing protection against high out-of-pocket costs, such as the 50% coverage of the Medicare Part A deductible offered by Plan K.
