Medigap Costs in 2026: What You'll Pay and Why

Medigap Costs in 2026: What You’ll Pay and Why

The average Medigap policyholder paid $244 a month in 2025, or $2,926 over the year, according to KFF’s analysis of Medigap premiums. That is an average, though. Your own premium depends on the company, the lettered plan, where you live, your age, and the way the insurer prices its policies. Two people in the same town can get quotes that differ by well over $100 a month for the same plan.

This guide explains what moves the number, how to read a quote, which discounts are real, and what costs Medigap does not remove.

TL;DR

• The average Medigap premium was $244 a month in 2025, up 20% from $203 in 2020, per KFF.
• Each insurer sets its own price, so the same lettered plan can cost very different amounts from company to company.
• Age, ZIP code, smoking status, gender and the pricing method (community, issue-age or attained-age) all shape your premium.
• Household, non-smoker, annual-payment and electronic-payment discounts exist at some companies. Ask each one.
• Medigap does not replace your Part B premium, and it does not cover everything, so budget for both.

Table of Contents

• What the average Medigap premium really tells you
• Why the same plan costs different amounts
• The three pricing methods, and why they matter more than the first quote
• Medigap discounts: household and otherwise
• What Medigap doesn’t pay for: the rest of your budget
• When you buy affects what you pay and what you can be charged
• Medigap or Medicare Advantage: cost is not just the premium
• How we help you find your number
• Practical ways to keep Medigap affordable
• FAQ
• Sources

What the average Medigap premium really tells you

KFF reports that the average monthly premium across all plan types for current policyholders rose from $203 in 2020 to $244 in 2025, a 20% increase. Over a full year, $244 a month comes to $2,926.

Treat that figure as a midpoint, not a prediction. It is a blend of every plan letter, every state and every age, and it describes people who already hold policies, many of whom bought years ago.

State averages show the spread. KFF’s 2025 figures range from $214 a month in Hawaii to $306 in New York. Plan G, one of the most popular lettered plans, averaged $194 a month nationally in 2025, with state averages running from $164 in New Mexico to $257 in New York (KFF).

So a fair way to think about it: a national average gives you a sense of scale, a state average gives you a rough neighborhood, and only a quote based on your age, ZIP code and health habits gives you your number.

Why the same plan costs different amounts

Medigap plans are standardized. A Plan G from one company covers the same benefits as a Plan G from another in most states. The price is not standardized. Medicare states that each private insurance company decides its own Medigap premiums, and the differences between companies for the same lettered plan can be substantial.

That is the single most useful fact in this article. If you compare plan letters but not companies, you are skipping the biggest price lever.

The factors that move your premium

Medicare’s guide to choosing a policy says premiums may reflect age, smoking status, gender, where you live and the type of policy. In practice:

• Plan letter. Richer coverage costs more. A plan with a lower deductible and more cost-sharing covered will usually carry a higher premium than a plan that leaves you paying more at the point of care.
• Location. Premiums track local costs and the local insurance market, which is why state averages vary so much.
• Age. Matters at purchase, and sometimes every year afterward, depending on the pricing method below.
• Tobacco use. Many insurers charge less to non-smokers.
• Gender. Some insurers price women and men differently, where state rules allow it.
• Time. Whatever method applies, premiums can also rise with inflation and rising medical costs.

The three pricing methods, and why they matter more than the first quote

The way an insurer prices a policy decides how your costs behave over ten or twenty years. Medicare’s guide describes three methods (Choosing a Medigap Policy):

Attained-age premiums are lower for younger buyers but increase as they get older, and they may start as the cheapest option and eventually become the most expensive, per the same Medicare guide. That is why a low quote at 65 deserves a follow-up question: what will this look like at 70, 75 and 80?

Which method applies depends on the state and the company. When you compare quotes, ask each one which method the policy uses and ask to see how past rate increases have gone. A policy that looks $20 cheaper today can cost more in total a decade from now.

A simple way to compare two quotes

1. Write down the plan letter, the company and the pricing method for each quote.
2. Confirm both quotes use the same discounts (or none), so the comparison is fair.
3. Ask what the premium would be at ages 70 and 75 for any attained-age policy.
4. Ask about the company’s rate-increase history on that plan.
5. Add the Part B premium (see below) to see your true monthly health-coverage cost.

Medigap discounts: household and otherwise

A household discount is a reduced rate some insurers give when more than one person in the same home is insured, often a spouse. Not every company offers one, and the terms differ. The size of the discount, who qualifies and whether it applies to new or existing policies is up to each insurer.

Medicare says companies may offer discounts for being married, being a non-smoker, or paying by electronic funds transfer. Its choosing guide adds that some insurers discount for women, annual payment, or multiple policies (guide).

Questions worth asking any insurer:

• Is there a household or spousal discount, and does my spouse need to hold a policy with the same company?
• Is there a non-smoker rate, and how long must I have been tobacco-free?
• Do you discount for paying annually or by bank draft?
• Does the quoted price already include the discounts, or do I have to apply?
• Does the discount stay if my spouse’s policy ends?

A discount is only a bargain if the base rate is competitive. A 7% discount on an expensive policy can still lose to a cheaper company with no discount. Compare the final price, not the discount percentage.

What Medigap doesn’t pay for: the rest of your budget

A Medigap premium is one line in your Medicare budget. Medicare notes that with Medigap you keep paying the Part B premium, and that your share of Part A and Part B costs, such as deductibles and coinsurance, depends on the policy you choose.

That means a realistic monthly figure includes:

• the Part B premium,
• your Medigap premium,
• a separate Part D drug plan premium if you take prescriptions (Medigap does not include drug coverage),
• any deductible or cost-sharing your particular plan leaves with you.

For current-year Medicare amounts, our guide to Medicare costs in 2026: premiums, deductibles and caps lays out each part side by side. If you are weighing a plan with a deductible, our look at the high-deductible Plan G walks through when a lower premium can make sense.

When you buy affects what you pay and what you can be charged

Timing matters for two reasons.

First, price. Because attained-age policies rise with age, buying younger can mean a lower starting premium, though not always a lower lifetime cost.

Second, access. Once you have a policy, an insurer cannot cancel it because of your age or health as long as you keep paying the premium. But getting the policy in the first place is a different matter. Outside certain protected windows, insurers in many states can use medical underwriting, which can raise your price or lead to a denial. We explain those protected situations in Medigap guaranteed issue rights.

If you are turning 65, the safest plan is to line up your Medigap shopping with your first enrollment window rather than putting it off. Our new-to-Medicare guidance page explains how that sequence works.

Medigap or Medicare Advantage: cost is not just the premium

Medigap premiums look high next to many Medicare Advantage plans, which often advertise low or $0 premiums. The two work differently: Medigap pays most of what Original Medicare leaves behind, while Advantage plans swap that for a plan with its own copays, networks and annual out-of-pocket limit. The right comparison is your total expected yearly cost under each, including a bad year.

Two of our articles help with that math: Medicare Advantage vs. Medicare Supplement and what you actually pay on Medicare Advantage.

How we help you find your number

Medigap pricing is hard to see from outside because it changes by company, ZIP code and birthday. At Almond Insurance, we are a Medicare agency in Rockford, Illinois, serving Northern Illinois and Southern Wisconsin. We compare Medigap, Medicare Advantage and Part D options for your situation, explain each in plain language, and review your coverage each year. You do not pay us directly for this guidance.

If you want a side-by-side look at Medigap options for your age and ZIP code, start with our Medicare Supplement and Medigap guidance, or see our full list of services. Living near the state line? We also have guidance for Beloit, Wisconsin residents.

Practical ways to keep Medigap affordable

• Get several quotes for the same plan letter. The company-to-company gap is where most savings are.
• Ask about the pricing method first. It predicts your costs better than the first-year premium does.
• Check every discount. Household, non-smoker, annual-pay and bank-draft discounts can add up.
• Review each year. Premiums can rise with inflation and other factors, so a policy that was competitive three years ago may not be today. A yearly review keeps you informed. Note that switching later may involve health questions, so confirm your options before you cancel anything.
• Pick the plan letter for the risk you want to carry. Paying more monthly buys lower surprises. Paying less means you cover more at the point of care.

FAQ

How much does Medigap cost per month?

The average premium among current policyholders was $244 a month in 2025, per KFF. Plan G averaged $194. Your own quote can be well above or below those numbers depending on the insurer, your age, your ZIP code and whether you use tobacco.

Do Medigap premiums go up every year?

They can. Premiums may rise with inflation and other factors under any pricing method, and attained-age policies also rise as you get older. Average premiums across all plans rose 20% between 2020 and 2025.

Is there a Medigap household discount?

Some insurers offer one, along with discounts for non-smokers, annual payment or electronic funds transfer. Availability and size vary by company, so ask each insurer whether the quote includes it and what the conditions are.

Does Medigap replace my Part B premium?

No. You keep paying the Part B premium when you have Medigap. The policy then covers some or most of your Part A and Part B deductibles and coinsurance, depending on the plan letter.

Sources

• KFF: Key Facts About Medigap Enrollment and Premiums for Medicare Beneficiaries
• Medicare.gov: Get Medigap costs
• Medicare.gov: Choosing a Medigap Policy
• Medicare.gov: Medicare costs
• AARP: Things to consider when choosing a Medigap plan

Recommended

• Medicare Costs in 2026: Premiums, Deductibles and Caps
• Medicare Advantage Costs: What You Actually Pay in 2026
• Medicaid vs Medicare: 2026 Costs When You Qualify for Both
• Medicare Savings Programs: 2026 Limits and How to Apply