Medicare Supplement Insurance Costs (2024)

FAQs

What is the average cost of Medicare supplemental insurance? ›

Plan G from AARP/UnitedHealthcare costs $142 per month, on average. Plan G is the best Medicare Supplement plan if you are newly eligible for Medicare. It offers the most coverage of any Medigap plan, except for Plan F which is only available to those who became eligible for Medicare before Jan. 1, 2020.

If you don't buy Part A when you're first eligible for Medicare (usually when you turn 65), you might pay a penalty. Most people pay the standard Part B monthly premium amount ($174.70 in 2024). Social Security will tell you the exact amount you'll pay for Part B in 2024.

Medicare supplemental insurance can help fill that gap. For example, if you still find yourself having to pay for deductibles, copays and more — even after you apply your other insurance types — then a supplemental plan could be worth it for you and your loved ones.

By and large, Plan F is the most popular Medicare Supplement plan due to its coverage of more out-of-pocket Medicare costs than any other Medigap plan type.

No. Even though Medicare can cover many of your health care costs, you'll still have some out-of-pocket expenses, including premiums, deductibles, copayments and coinsurance.

Medicare Part A (hospital insurance)

You're eligible for Part A at no cost at age 65 if 1 of the following applies: You receive or are eligible to receive benefits from Social Security or the Railroad Retirement Board (RRB).

If you have Medicare Part B medical insurance, your premiums are automatically deducted from your Social Security check and your monthly premiums are based on your income. Most Part B enrollees will have $174.70 deducted from their Social Security each month in 2024. The amount increases if you have a high income.

For example, it may not cover all the expenses you expected it to, it may impose waiting periods before payments start, or it may contain limits based on how much you paid and for how long. It is important to understand that supplemental insurance is not regulated by the Affordable Care Act.

What is the downside to Medicare supplement plans? ›

Some of the most notable disadvantages include high monthly premiums, limited guaranteed enrollment periods, and a lack of additional benefits like vision, dental, or prescription drug coverage.

Key takeaways: Plan G is the most generous and costly Medigap plan. Depending on how much you access healthcare, the high-deductible version of Plan G may be a better deal, but it requires you to pay $2,800 out of pocket in 2024 before Medigap coverage begins. However, almost all of your care is then covered at 100%.

Demographics – Your age, location, and gender can affect your premium rate for a Medicare Supplement plan. Depending on where you live, you may pay more for your coverage. Age and gender can play a part in pricing, too. For example, women typically have longer life expectancies than men.

Your premiums may be lower: Medicare Advantage plans generally offer low monthly premiums (in addition to your Part B premium) or no-premium plans. This may cost you less per month than having Original Medicare, Part D, and a Medigap policy.

Instead, the insurer typically pays the agent a commission that is a percentage of the annual premium for the plan sold. The average percentage insurers pay to agents is a 22% commission for first-time enrollees. The commission percentage is then reduced to about 10% of the plan's premium for renewals.

1 - Plans F and G also have a high deductible option which require first paying a plan deductible of $2,800 (in 2024) before the plan begins to pay. Once the plan deductible is met, the plan pays 100% of covered services for the rest of the calendar year.