Understanding Medigap Costs

The costs for Medigap supplemental insurance plans are set by the private insurance companies that sell them. The costs can vary from one plan to the next. 

How Much Does Medigap Cost?

Medigap costs include:

• Medicare Part A and Part B Premiums
  You must have Medicare Part A and Part B to enroll in a Medigap plan. 

You will not have to pay a premium for Medicare Part A if you or your spouse have worked and had payroll taxes deducted for ten years (40 quarters) or more. That is called premium-free Part A.

You will pay a monthly premium for Medicare Part B. The amount varies depending on your income. Medigap plans don’t pay for Part B premiums.

• Medigap Premium
  There are ten types of Medigap plans to choose from. Each type of Medigap plan offers the same exact benefits, no matter which company offers it. 

However, each health plan sets the premium for the Medigap policies it offers. The premium can vary from one plan to the next – even though the benefits are the same. 

• Medigap Deductible
  Some Medigap plans charge a deductible. There are even plans with very high deductibles. 

• Medigap Copayments
  Some Medigap plans charge copayments on certain services. 

• Medigap Coinsurance
  Some Medigap plans charge coinsurance for certain services. 

The costs and benefits for Medigap plans vary widely. Find a trusted advisor to determine the best option for you.