Why Two Medigap Plan G Policies Can Cost Completely Different Amounts

Why Medigap Plan G Premiums Vary So Much Between Companies

Two people comparing Plan G can receive different premiums even when the standardized benefits match. To understand the difference, compare written quotes using the same ZIP code, age, tobacco status, policy type, coverage start date and discount assumptions. An advertised starting price is not a personal quote.

This price difference surprises many people shopping for Medicare Supplement coverage. In most states, standard Plan G medical benefits match across insurers, but premiums and policy terms still need a local comparison. Medicare.gov's cost guidance explains why you should compare the same plan letter and confirm an accurate price with each insurer.

What Makes Plan G the Same Everywhere

Every Plan G policy sold in the United States, aside from Massachusetts, Minnesota, and Wisconsin which use their own standardized formats, covers the same list of benefits. That includes your Part A deductible, Part B coinsurance, skilled nursing coinsurance, and foreign travel emergency care.

Standard Plan G leaves the annual Part B deductible to you ($283 in 2026), and its benefits apply to covered services subject to policy limits. It does not cover every health expense, such as routine dental care or outpatient prescriptions. Compare standard Plan G separately from high-deductible or Medicare SELECT policies. See CMS's 2026 cost figures and the official Medigap guide.

• Part A deductible ($1,736 in 2026)

• Part A coinsurance for hospital stays beyond day 60

• Part B coinsurance, typically 20% of approved charges

• Skilled nursing facility coinsurance ($217 per day in 2026)

• First three pints of blood

• Foreign travel emergency care (80% up to plan limits)

The Three Pricing Methods That Create Cost Gaps

The rating method is one factor in the premium you pay now and how it may change later. Ask which method applies to the exact policy quoted. Medicare's Medigap buying guide explains the three methods below.

Other Reasons Premiums Differ Between Companies

A quote can reflect more than the rating method. Check the applicant details, policy type and discount terms instead of assuming the difference comes from one factor.

Company size alone does not establish future premium stability. Compare the exact insurer and policy form available in your state. If someone claims a company has steadier increases, ask for the underlying records and the period covered.

• Confirm the same ZIP code, age and tobacco assumptions for every quote

• Check household and payment discounts and when they can change

• Ask whether medical underwriting applies or purchase protections are available

• Compare the same deductible option and any SELECT provider requirements

• Ask the insurer to explain the rating method and any proposed premium change

💡 Eddie's Pro Tip

Ask for the rating method and any available rate history for the same insurer, policy form and state. Save the source and dates with your quote. Historical increases cannot tell you exactly what you will pay in future years.

Common Mistakes When Comparing Medigap Quotes

Shoppers often compare Plan G quotes the same way they would compare car insurance, focusing only on the sticker price. That approach misses the factors that determine your total cost over the years you will hold the policy.

• Choosing the lowest premium without checking the rating method

• Not asking about the company history of rate increases

• Assuming a well-known brand name automatically means better pricing

• Assuming open enrollment locks in your premium permanently

• Forgetting that switching plans later may require answering health questions

How to Compare Plan G Quotes the Right Way

Start by matching the policy type and quote assumptions, then compare the insurer, premium and discount terms. Use our five-step Plan G quote comparison guide and worksheet to keep the offers side by side.

• Confirm the rating method used by each carrier you are considering

• Request rate history for the specific plan over the last three to five years

• Check financial strength ratings from independent agencies like AM Best

• Ask about available discounts, including household and payment discounts

• Review customer service reputation, since you will be dealing with this company for claims and renewals

• Compare the total premium, not just an introductory or first-year rate

A licensed Medicare agent can help obtain quotes from the companies they represent. Ask which insurers are included, which are not, and whether available rate-history records match the policy you are considering.

Frequently Asked Questions