Why Two Medigap Plan G Policies Can Cost Completely Different Amounts

A woman in Ohio pays $118 a month for Medigap Plan G. Her neighbor, same age, same zip code, pays $189 for the exact same plan letter. Both policies cover the identical benefits required by federal law, yet one costs 60% more than the other for no medical reason at all.

This price gap surprises a lot of people shopping for Medicare Supplement coverage for the first time. Plan G is Plan G no matter which company sells it, since benefits are standardized by the federal government. What is not standardized is the price, and that difference comes down to how each insurance company sets its rates.

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.

The only thing Plan G does not cover is the Part B deductible, which sits at $283 in 2026. Beyond that single gap, a $118 Plan G policy and a $189 Plan G policy will pay claims identically.

• 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

Insurance companies use one of three rating methods to price Medigap plans. This single decision drives most of the price variation you see between carriers, and it also determines how your premium will behave as you age.

Other Reasons Premiums Differ Between Companies

Rating method explains a lot, but not everything. Insurers also factor in their own claims experience, administrative costs, profit margins, and how aggressively they want to grow in your state.

A company with a large, healthy pool of policyholders in your area may price more competitively than a smaller carrier still building its book of business. Household discounts, payment method discounts, and underwriting practices at the time you applied can also shift your rate.

• Company size and claims pool: larger, more stable pools tend to have steadier pricing

• Household or multi-policy discounts: some insurers reduce premiums when a spouse also enrolls

• Underwriting timing: rates locked in during open enrollment vs. later medical underwriting can differ

• Geographic rating areas: some states allow zip-code-level pricing within the same state

• Company profit targets and reserves: some insurers price conservatively, others compete harder on price

💡 Eddie's Pro Tip

I tell clients to ask every carrier one specific question: what rating method do you use, and what has this exact plan rate increase looked like over the past five years? Most people only compare today premium, but the company rate increase history tells you far more about what you will actually pay long term. A slightly higher premium today from a company with a stable increase history often beats a cheap policy that jumps every renewal.

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

• Skipping the medical underwriting window and paying more later

• Forgetting that switching plans later may require answering health questions

How to Compare Plan G Quotes the Right Way

A fair comparison looks at more than the monthly number on the quote sheet. Since coverage is identical, your job is to evaluate the company behind the policy, not the benefits.

• 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

Working with a licensed Medicare agent who represents multiple carriers can simplify this process significantly. Instead of calling five companies yourself, one licensed agent can pull quotes, rating methods, and rate histories side by side so you can compare apples to apples.

Frequently Asked Questions