Medigap premiums in 2024
Medicare supplemental insurance plans, also called Medigap policies, labeled A, B, D, G, K, L, M, N, are in 20244 standardized and regulated by the government. This means the benefits for each plan with the same letter are identical, no matter which insurance company offers the policy.
The different plans were created with the mindset to offer a variety of choices, so every Medicare beneficiary may find a plan for his or her individual health care needs. So, before you ask for the ‘cost’ of a plan, you need to look at its detailed benefits. A good starting point to learn about what is included in each of the standardized plans can be found in this Medigap benefits chart.
Some plans will be offered with higher deductible and lower premiums in 2024, compared to other plans. Some have an out-of-pocket limit (Plans K and L). Plan N pays 100% of the Part B coinsurance, except for a small co-payment for some doctor’s office and emergency room visits. Alternatively, the plans M and N use cost-sharing in order to keep the monthly premium lower. When you compare plans, note that Medigap policies cover coinsurance only after you have paid the deductible (unless the Medigap policy also pays the deductible).
While Medigap benefits are standardized, the insurance companies offering this kind of supplemental insurance vary from state to state, and each provider is not only free to select the plans they want to offer, but also to set their own premiums.
You need to understand the 3 different ways insurance companies set their premiums in 2024, as this will have a big influence on how your premium may go up in the future:
- Community-rated (“no age”) Premiums: Your age does not have an influence on the premium.
- Issue-age-rated (“entry age”) Premiums: Your premium is based on your age at the time you join the plan. If you join at age 65, your premium is lower than if you join with 75 years.
- Attained-age-rated (“current age”) Premiums: Your premium is based on your current age and will go up as you get older.
Please note that premiums always may go up due to inflation, or other factors!
When you compare supplement plan premiums for 2024, ask for discounts (non-smokers, multiple policies, automatic deduction, prepayments, etc.).
Note that the insurer may charge you a higher premium if you enroll outside the Medigap open enrollment period and don’t have a ‘guaranteed issue right’.
The best online tool to find insurance companies offering plans in your Zip code and compare Medigap premiums is the Medicare Plan Finder.
