Average Cost of Supplemental Health Insurance for Seniors Budget Seniors, March 1, 2026March 1, 2026 🔑 10 Key Takeaways The national average Medigap premium is $189/month at age 65. Medicare Supplement costs average $189 monthly at age 65, increasing to $238 by age 75. Plan G is the most popular and recommended plan for 2026. Medigap Plan G costs an average of $180/month for a 65-year-old woman who doesn’t smoke and covers nearly all costs except the $283 Part B deductible. Premiums vary by more than $190/month between states. New York leads at $354/month for both ages, while South Carolina and New Mexico offer the lowest rates at $160 for 65-year-olds. In Texas, Plan G premiums range from $95 to $225/month. For a 65-year-old nonsmoker in Texas, monthly premiums typically range from $165 to $225 depending on carrier and zip code. Medigap does not cover prescription drugs. Medigap plans sold after 2005 don’t include prescription drug coverage. You need a separate Part D plan. Medigap does not cover dental, vision, or hearing. According to Medicare.gov, Medigap policies generally don’t cover long-term care, vision or dental care, hearing aids, eyeglasses, or private-duty nursing. Plan F costs $564/year more than Plan G on average — for just $283 in extra coverage. Plan F often doesn’t make sense because Plan G has the same coverage except it won’t pay the $283 Part B deductible. Comparing insurers during open enrollment can save $50-$100/month. Comparing multiple insurers during open enrollment can save you $50 to $100 monthly on identical coverage. The best Medigap companies for 2026 are State Farm, AARP/UnitedHealthcare, HealthSpring, and Mutual of Omaha. These are NerdWallet’s top Medigap picks for 2026 based on cost, member satisfaction, and more. Your 6-month open enrollment window at age 65 is the single most important deadline in Medicare. During this period, insurers cannot deny you coverage or charge higher premiums based on pre-existing health conditions — and you never get this opportunity again. Yes, Supplemental Insurance Is Worth It for Seniors — and Here’s the Math That Proves It The question isn’t really “is it worth it?” — it’s “can you afford the alternative?” Without Medigap, here’s what Original Medicare leaves you responsible for in 2026: the Part A hospital deductible of $1,736 per benefit period (and you can have multiple benefit periods in a single year), 20% coinsurance on all Part B outpatient services with no annual cap, daily coinsurance of $459 per day for hospital stays lasting 61-90 days, and $918 per day for lifetime reserve days beyond 90 days. That 20% coinsurance on Part B has no annual out-of-pocket maximum. If you need a $200,000 heart surgery, your 20% share is $40,000. There is no ceiling. Medigap Plan G eliminates virtually all of that exposure for roughly $180/month. Your total costs with Medigap include monthly premiums, usually the $283 Part B deductible, and potential copays or cost-sharing depending on plan type. 🧮 The Real Math: With vs. Without MedigapWithout MedigapWith Plan GPart A hospital deductible (per benefit period)$1,736 — you pay✅ CoveredPart B 20% coinsurance (no cap)Unlimited exposure✅ Covered after $283 deductibleHospital days 61-90 coinsurance$459/day — you pay✅ CoveredSkilled nursing days 21-100$204.50/day — you pay✅ CoveredPart B excess chargesYou pay full amount✅ CoveredAvg monthly premium (age 65)$0 extra~$180/monthAnnual premium cost$0~$2,160⚠️ Maximum potential exposure/yearUnlimited$283 That table tells the entire story. For roughly $2,160 per year in premiums, you’re capping your maximum annual healthcare exposure at $283 (the Part B deductible). Without it, a single serious illness could cost you tens of thousands. The Top 5 Medicare Supplement Plans in 2026 — and the One That Beats Them All There are 10 standardized Medigap plan letters (A through N), but five dominate the market. Plan G, Plan F, and Plan N are the most popular Medicare Supplement plans in 2026. Plan G is the undisputed champion for anyone who became eligible for Medicare after January 1, 2020. Plan G covers each of the gaps in Medicare except for the annual Part B deductible, which is $283 in 2026. After you meet that small deductible, you pay nothing for Medicare-approved services for the rest of the year. Discover Reverse Mortgages for SeniorsPlan F offers the absolute most comprehensive coverage — it pays everything Plan G pays plus the Part B deductible. But there’s a catch. Plan F costs $227/month on average in 2026, compared to $180 for Plan G. That means you’re paying roughly $564 more per year in premiums to avoid a $283 deductible. The math doesn’t work. Plus, Plan F is closed to anyone who became Medicare-eligible after 2020. Plan N is the budget-friendly alternative. Plan N doesn’t cover the Part B deductible or Part B excess charges, and you may be required to pay a $20 copay for some doctor visits and up to a $50 copay for ER visits that don’t result in admission. In exchange, premiums are noticeably lower. Plan K and Plan L are cost-sharing plans with low premiums but higher out-of-pocket responsibility. Plan K offers the next-lowest premium at $110 monthly but only covers 50% of costs. 🏆 Top 5 Medigap Plans Compared (2026)Avg Monthly Premium (Age 65)Part B Deductible Covered?Copays?Best For🥇 Plan G~$180❌ ($283/yr)NoneMost seniors — best value🥈 Plan F*~$227✅NonePre-2020 Medicare enrollees only🥉 Plan N~$140-$160❌$20 office / $50 ERBudget-conscious, healthy seniorsPlan K~$110❌50% cost-sharingVery healthy, low-utilization seniorsPlan L~$134❌25% cost-sharingModerate health, moderate budget *Plan F closed to new Medicare enrollees after January 1, 2020 The Average Cost of Medigap by State: Where You Live Determines What You Pay This is the data most articles bury or leave out entirely. Where you live makes a massive difference in what you’ll pay for Medigap. Premiums vary by more than $190 monthly for the same coverage. Medigap premiums are significantly more expensive in Florida than they are in either Texas or California. The reason is straightforward: states with higher healthcare costs, older populations, and fewer competing insurers charge more for the identical coverage. Here is a representative sampling of average Medigap premiums (Plan G, age 65, female nonsmoker) across key states, based on 2026 data analysis: 📍 StateAvg Plan G Monthly Premium (Age 65)Avg Plan G Monthly Premium (Age 75)Cost Tier🗽 New York~$354~$354 (community-rated)🔴 Highest🌴 Florida~$250-$327~$300+🔴 Very High🤠 Texas~$163-$180~$210-$250🟡 Moderate☀️ California~$170-$190~$220-$260🟡 Moderate🍑 Georgia~$180-$233~$230-$280🟡 Moderate🌽 Iowa~$130-$150~$170-$200🟢 Low🌾 Oklahoma~$158~$200🟢 Low🌙 South Carolina~$160~$195🟢 Lowest🌺 New Mexico~$160~$200🟢 Lowest Some states, like Massachusetts and Washington, keep prices flat regardless of age because they mandate community-rated pricing. Most other states allow attained-age rating, where your premium climbs every single year on your birthday. Texas deep dive: The average cost of a Medicare Supplement Plan G in Texas is $163/month. Cigna comes in at $167/month compared to Aetna’s $220 in Texas. Ace Property and Casualty has the cheapest rates, with Plan G at $137/month and Plan N at just $99/month. Texas has one of the most competitive Medigap markets in the country, which benefits seniors who shop aggressively. Medigap Does Not Cover Prescription Drugs — and This Gap Costs Seniors Thousands This is the single biggest misconception in Medicare. Medigap plans sold after 2005 don’t include prescription drug coverage. Not a single standardized Medigap plan letter — A through N — includes any retail pharmacy benefit. To get prescription drug coverage, you must enroll in a separate Medicare Part D plan, which is sold by private insurers and costs between $20 and $80 per month depending on your chosen plan and location. This means your actual total monthly cost for comprehensive Medicare coverage looks like this: your Part B premium ($202.90 in 2026 for most people) plus your Medigap premium (averaging $180 for Plan G) plus your Part D drug plan premium ($20-$80). That’s roughly $400 to $460 per month before you fill a single prescription. Discover What Insurance Covers Hearing Aids for Seniors?Medicare Supplement plans do not include prescription drug coverage, and most do not include dental, vision, or hearing coverage. Medigap Does Not Cover Dental and Vision Either — Here’s What That Actually Costs You Medicare Supplement Insurance does not provide coverage for dental or vision care. Instead, these plans provide coverage for some of the out-of-pocket costs associated with Original Medicare such as deductibles, copayments, and coinsurance. This gap is devastating in practice. In 2026, the cost of a single dental crown has risen to $1,500, and a full set of dentures can exceed $5,000. Prescription-grade hearing devices for severe hearing loss cost $4,000 to $6,000 a pair, and Medicare pays nothing toward the device or the exam to fit it. Your options for covering dental and vision include purchasing a standalone dental insurance plan (typically $25-$75/month), switching to a Medicare Advantage plan that bundles dental and vision (but you lose the freedom to see any Medicare doctor nationwide), or joining a dental discount plan or using community health centers. 🦷👓 What Medigap Doesn’t CoverEstimated Annual Cost to You🦷 Routine dental (cleanings, x-rays)$300-$600/year🦷 Major dental (crowns, root canals)$1,500-$5,000+ per procedure👓 Routine eye exams$100-$250/year👓 Eyeglasses/contacts$200-$600/year👂 Hearing aids (prescription-grade)$4,000-$6,000 per pair💊 Prescription drugsRequires separate Part D plan🏥 Long-term custodial care$100,000+/year (nursing home) Medicare Plan G Pros and Cons: The Full Picture Nobody Else Gives You The pros are substantial. Plan G covers the Medicare Part A deductible ($1,736 in 2026), Part A coinsurance and up to 365 additional hospital days, Part B coinsurance, Part B excess charges, skilled nursing facility coinsurance, and up to $50,000 in foreign travel emergency benefits. You can see any doctor or hospital in the entire country that accepts Medicare — no networks, no referrals, no prior authorizations. This portability is invaluable for seniors who travel or split time between states. The cons are real but manageable. You pay the $283 Part B deductible annually before Plan G kicks in. Premiums increase every year — Plan G costs went up 13% nationally between 2025 and 2026. You get zero prescription, dental, vision, or hearing coverage. And you cannot combine Medigap with a Medicare Advantage plan — it’s one or the other. The hidden con most articles skip: once you leave your initial 6-month open enrollment period, you may never be able to get Medigap again at an affordable rate. Insurers can deny your application or charge astronomically higher premiums based on your health history. If you develop cancer, heart disease, or diabetes after turning 65 and didn’t enroll during open enrollment, you could be permanently locked out of affordable supplemental coverage. ✅ Plan G Pros❌ Plan G ConsCovers virtually all Medicare gapsDoesn’t cover Part B deductible ($283/yr)See any Medicare doctor nationwideNo prescription drug coverageNo networks or referralsNo dental, vision, or hearingForeign travel emergency coveragePremiums increase annuallyPredictable, near-zero out-of-pocket costsCan’t combine with Medicare AdvantageGuaranteed renewable — can’t be canceledOpen enrollment window is one-time only The Worst Medicare Supplement Companies: Red Flags That Cost Seniors Money Since all Medigap plans with the same letter offer identical benefits regardless of company, the only differences are price, service quality, rate stability, and financial strength. Some companies exploit this standardization by charging premium prices for commodity coverage while delivering substandard service. Globe Life’s subsidiary, United American Insurance Company, is known for unexpected premium increases and policyholders paying roughly 40% more than leading companies. Globe Life has a poor customer satisfaction record with a 2.3-star BBB rating and NAIC data showing 54% more complaints than average. Discover Is Medicare Actually for Seniors?Cigna has been flagged by NAIC data for variable pricing and mixed service quality across states. Customers report billing errors, uneven support, or regional claim disputes. That said, Cigna often offers some of the lowest initial premiums — which is why checking rate increase history matters as much as the starting price. Humana’s Medigap plans are expensive and have a high rate of complaints relative to competitors, even though the company performs well in Medicare Advantage. Blue CareFirst, Aflac, and Medica stand out for having poor customer service for their Medigap plans. Each company gets far more complaints than an average company its size. Warning signs to watch for in any Medigap company: Unpredictable rate increases are one of the biggest complaints. Some insurers use attained-age rating and may file large rate hikes each year, even if your health or coverage hasn’t changed. If a company has low financial ratings from agencies like A.M. Best, Moody’s, or Standard & Poor’s, it may be more vulnerable to market changes or claim-paying issues. 🚩 Worst Company Warning SignsWhat to Check💸 Steep “teaser” rates that jump laterAsk for 5-year rate increase history📞 Poor customer service reputationCheck NAIC complaint index ratio🏦 Low financial strength ratingsLook for A.M. Best rating of “A” or higher📉 Limited plan availabilityAvoid companies offering only 1-2 plan letters⚠️ High complaint-to-size ratioCompare on your state’s insurance department site How to Actually Save Money on Medigap Without Sacrificing Coverage Enroll during your 6-month open enrollment at age 65. This is non-negotiable. Each insurance company decides how it will set the price for its Medigap policies. During open enrollment, they must offer you their best rates regardless of health conditions. Wait even one month past this window, and your options and pricing may change dramatically. Compare at least 5 carriers for identical coverage. A $400 Medigap Plan G policy has the same standardized Medicare coverage as one that costs $131. That’s not a typo. The exact same benefits, different price. Ask about household discounts. Blue Cross Blue Shield lets you save 10% on your Medigap policy if you live with a spouse or civil partner or if you’ve lived with up to three adults over age 60. Mutual of Omaha provides a 12% discount for spouses who enroll together. Set up automatic payments. Most carriers offer a 2-5% discount for electronic funds transfer or autopay from a bank account. Consider Plan N if you’re healthy. The premium savings versus Plan G can be $20-$40/month ($240-$480/year), and your only additional costs are small copays for office visits and ER visits that don’t lead to admission. Use your State Health Insurance Assistance Program (SHIP). Every state has free, unbiased Medicare counselors who can help you compare plans without trying to sell you anything. This service is funded by the federal government and costs you nothing. Frequently Asked Questions Is supplemental insurance worth it on a fixed income? For most seniors, absolutely. The cost of Medigap ($150-$250/month) provides protection against unlimited 20% coinsurance exposure under Original Medicare. A single hospitalization without Medigap could cost more than two full years of premiums. The math overwhelmingly favors having coverage unless you have substantial savings you’re willing to self-insure with. What’s the Part B deductible for 2026? The Medicare Part B deductible is $283 in 2026. This is the only cost Plan G doesn’t cover. Once you meet it, Plan G pays 100% of all remaining Medicare-approved costs. Can I switch Medigap plans after I enroll? You can switch anytime, but outside your initial open enrollment period, insurers can require medical underwriting. If you’ve developed health conditions since enrolling, you may be denied or charged significantly higher premiums. Some states offer additional protections, so check your state’s specific rules. Is Medigap or Medicare Advantage better for seniors? Medicare Advantage plans tend to be cheaper, with average monthly premiums of around $38 to $105. But they use provider networks, require referrals, and have annual out-of-pocket maximums that can reach $8,850. Medigap costs more monthly but gives you freedom to see any Medicare provider nationwide with virtually zero surprise bills. Seniors who travel frequently, have complex health needs, or value provider choice typically fare better with Medigap. Does any Medigap plan cover everything? No. Medigap policies generally do not cover vision or dental care, hearing aids, eyeglasses, long-term care, or private nursing. Prescription drugs are not covered by Medicare Supplement Insurance. Even Plan F, the most comprehensive option, leaves these gaps wide open. How do I find the cheapest Medigap plan in my state? Start with the official Medicare Plan Finder tool at Medicare.gov, which lets you compare every available Medigap policy in your zip code side by side. Then call your state’s SHIP program for free personalized counseling. Finally, contact at least three to five insurance companies directly to get the most accurate quotes for your specific age, gender, and health profile. The Bottom Line: What Every Senior Needs to Do Right Now If you’re approaching 65, mark your calendar six months before your Part B effective date. That open enrollment window is the most consequential financial deadline of your retirement — more important than Social Security timing, more important than 401(k) rollovers. Miss it, and you may permanently lose access to affordable comprehensive coverage. If you’re already enrolled in Medigap and haven’t compared rates recently, do it now. Nationally, the cost of a Medicare Supplement plan rose by an average of 10% between 2025 and 2026. Your current insurer may have hiked your rate far above what competitors charge for the identical plan letter. While switching outside open enrollment requires medical underwriting, healthy seniors can often save $50 to $100 per month by shopping. And if you’re relying solely on Original Medicare without any supplemental coverage, understand that you’re one serious illness away from financial catastrophe. The 20% coinsurance with no annual cap is the most dangerous gap in American healthcare for retirees. A Medigap Plan G closes it for roughly $6 a day. That’s the price of a latte, protecting you against potentially unlimited medical bills. Recommended Reads Medicare Advantage vs. Medigap 20 Best Affordable Dental Implants for Senior Citizens Free or Low Cost Dental Services for Seniors Without Insurance Medicare Advantage vs. Medicare Supplement Blog