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What Are Medigap Costs?

Medigap pays many of the copays and deductibles you’d otherwise pay out of your own pocket.

Many different companies sell Medigap plans. But each company must sell the exact same benefits, or standard benefits, of each plan. This means that a Medigap Plan C sold by Company X must have the same benefits as Plan C sold by Company Y.

Where you may see a difference between companies is in the cost, or premium, that the company charges you for the plan. Be sure to shop around to make sure you’re not paying more than you need for your Medigap coverage.

Why are the costs so different if the benefits are the same?

There are many reasons why the cost varies between companies. It may be based on how old you were when you bought the plan, your current age and whether you smoke. The number of people in the plan can change it, too. Also, there are rules for setting policy rates. And they are different depending on the state where you live.

You can compare the differences in premiums, deductibles and any other costs for all the Medigap plans in your state. Compare plans.

What are some questions I can ask the insurance companies I’m comparing?

These questions can help you sort out some of the differences between companies:

  • Has the premium for your plan changed in the last 3 years?
    • If so, by how much?
    • How often does it change or go up?
  • Will the premium change as I get older?
    • Or is it the same for everyone, no matter what age?
  • How long is your wait for pre-existing conditions?

If you want to learn more about Medigap plans and what they cover, visit the Medigap coverage page. View plans.

What if I change my mind after purchasing my plan?

By law, when you buy a Medigap you have a 30-day “free look” or “trial” period. If you change your mind, you can cancel it and get a refund. You must do this within 30 days of the day your policy started.

When you switch from one plan to another plan, be careful. Do not cancel your first policy until after your free look period is over. You may have to pay two premiums for 1 month. But at least you will have the chance to change back if you need to.

Next steps:

Learn About Getting Help with Costs or Learn When to Enroll in Medigap