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 by Daniel Agrici, Founder & Lead Developer
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\nAge adjustment: 1 + (67-65) x 0.03 = 1.06\nGender adjustment: 1.0 (female)\nRegion (Midwest): 0.90\nTobacco: 1.0\nMonthly = $200 x 1.06 x 1.0 x 0.90 x 1.0 = $190.80\nAnnual = $190.80 x 12 = $2,290\n5-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\nAge adjustment: 1 + (70-65) x 0.03 = 1.15\nGender adjustment: 1.08 (male)\nRegion (Northeast): 1.20\nTobacco surcharge: 1.20\nMonthly = $150 x 1.15 x 1.08 x 1.20 x 1.20 = $267.93\nAnnual = $267.93 x 12 = $3,215\n10-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.
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 by Daniel Agrici, Founder & Lead Developer · Editorial policy