Medicare Supplement Cost Calculator
Compare Medigap supplement plan costs from plan type, age, gender, and location. Enter values for instant results with step-by-step formulas.
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer
Medicare Supplement Cost Calculator
Calculator
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Formula: Monthly Premium = Base Rate x Age Factor x Gender Factor x Region Factor x Tobacco Factor
Worked example — Monthly: $191 | Annual: $2,290 | 5-Year: ~$12,657
Formula
Monthly Premium = Base Rate x Age Factor x Gender Factor x Region Factor x Tobacco Factor
Medigap premiums are calculated starting from a base rate for each plan type, then adjusted for age (approximately 3% increase per year over 65), gender (males typically pay 8% more), geographic region (costs vary 10-20% by area), and tobacco use (15-25% surcharge for smokers). Long-term projections assume a 5% annual increase.
Worked Examples
Example 1: 67-Year-Old Female, Plan G, Midwest
Problem:A 67-year-old non-smoking woman in the Midwest wants Plan G coverage. Estimate monthly and annual costs.
Solution:Base premium Plan G: $200/month Age adjustment: 1 + (67-65) x 0.03 = 1.06 Gender adjustment: 1.0 (female) Region (Midwest): 0.90 Tobacco: 1.0 Monthly = $200 x 1.06 x 1.0 x 0.90 x 1.0 = $190.80 Annual = $190.80 x 12 = $2,290 5-year projected total (5% annual increase): ~$12,657
Result:Monthly: $191 | Annual: $2,290 | 5-Year: ~$12,657
Example 2: 70-Year-Old Male Smoker, Plan N, Northeast
Problem:A 70-year-old male smoker in the Northeast considers Plan N. Calculate estimated costs.
Solution:Base premium Plan N: $150/month Age adjustment: 1 + (70-65) x 0.03 = 1.15 Gender adjustment: 1.08 (male) Region (Northeast): 1.20 Tobacco surcharge: 1.20 Monthly = $150 x 1.15 x 1.08 x 1.20 x 1.20 = $267.93 Annual = $267.93 x 12 = $3,215 10-year total: ~$40,447
Result:Monthly: $268 | Annual: $3,215 | 10-Year: ~$40,447
Frequently Asked Questions
What is a Medicare Supplement (Medigap) plan?
A Medicare Supplement plan, commonly called Medigap, is private insurance that helps cover out-of-pocket costs not paid by Original Medicare Parts A and B. These costs include deductibles, copayments, and coinsurance. Medigap policies are standardized by the federal government and labeled with letters A through N, with each letter offering a specific set of benefits. All Plan G policies, for example, offer the same benefits regardless of which insurance company sells them, though premiums vary between insurers. Medigap policies work alongside Original Medicare, meaning Medicare pays its share first, then the Medigap policy pays some or all of the remaining costs. Unlike Medicare Advantage plans, Medigap policies do not include prescription drug coverage, so enrollees typically also need a standalone Part D plan.
Which Medigap plan offers the best value?
Plan G is widely considered the best overall value for Medicare Supplement coverage since Plan F became unavailable to new enrollees in 2020. Plan G covers everything Plan F did except the Part B deductible, which is approximately 240 dollars annually in 2024. Since Plan G premiums are typically 30 to 50 dollars less per month than Plan F was, enrollees save money even after paying the Part B deductible out of pocket. Plan N is another popular value option with lower premiums than Plan G, though it requires small copayments for some doctor visits and emergency room visits that do not result in admission. For those seeking the lowest premiums, Plans K and L offer cost-sharing arrangements with annual out-of-pocket maximums, providing some protection while keeping monthly costs lower.
How do Medigap premiums change over time?
Medigap premiums can be priced using three different methods, and understanding these methods is crucial for long-term cost planning. Community-rated (no-age-rated) plans charge the same premium regardless of age, meaning younger enrollees pay more initially but premiums increase only for inflation and claims experience. Issue-age-rated plans base premiums on your age at enrollment and do not increase due to aging, though general rate increases still apply. Attained-age-rated plans are the most common and start with the lowest premiums but increase as you age. Under attained-age pricing, premiums typically increase 3 to 5 percent annually due to age alone, plus additional increases for inflation and medical cost trends. Over a 20-year period, an attained-age plan can become significantly more expensive than a community-rated plan.
When is the best time to enroll in a Medigap plan?
The optimal time to enroll in a Medigap plan is during your Medigap Open Enrollment Period, which begins on the first day of the month you turn 65 and are enrolled in Medicare Part B. This six-month window is critically important because during this period, insurance companies cannot deny you coverage, charge higher premiums based on health conditions, or impose waiting periods for pre-existing conditions. This is your guaranteed issue right. After the open enrollment period expires, insurance companies in most states can use medical underwriting to evaluate your health status and may deny coverage, exclude pre-existing conditions, or charge higher premiums. Some states offer additional protections, including guaranteed issue rights when switching plans. If you miss your initial enrollment period, your options become significantly more limited and potentially more expensive.
How does Medigap compare to Medicare Advantage?
Medigap and Medicare Advantage represent fundamentally different approaches to Medicare coverage and choosing between them is one of the most important healthcare decisions seniors make. Medigap works with Original Medicare, providing nationwide coverage with any provider who accepts Medicare, offering maximum flexibility and predictable costs but requiring separate Part D drug coverage and typically costing more in monthly premiums. Medicare Advantage replaces Original Medicare with managed care, often including drug coverage and extras like dental, vision, and hearing, with lower or zero premiums but restricted provider networks and potentially significant out-of-pocket costs for serious illness. Medigap is generally better for people who travel frequently, see many specialists, or want predictable costs. Medicare Advantage may suit those who want lower premiums and integrated benefits and are comfortable using network providers.
What is dollar-cost averaging?
Dollar-cost averaging (DCA) means investing a fixed dollar amount on a set schedule regardless of market conditions. When prices fall your fixed amount buys more shares; when prices rise it buys fewer, lowering your average cost over time. DCA eliminates emotional decision-making — research shows most investors who attempt to time the market underperform a simple DCA strategy due to behavioral biases. It is especially effective for volatile assets like equities and index funds.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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