There are many reasons why some states have more expensive Medigap plans than others. The rules in some states vary, and the cost of living can also play a factor. The states below are ranked the top 10 most expensive states for Medigap plans.
10 Most Expensive States for Medigap Plans
- New York
Why are Medigap Plans More Expensive in These States?
There are many factors that impact your Medigap rates. Eight of the ten most expensive states for Medigap plans use a community rating. The other two states have high costs of living and different special rules that can influence prices.
Community rating methods tend to be higher for those age 65 and balance out through the life of the policy. So, while you pay more in the beginning, the rate increases won’t occur due to age.
How Much is Medigap in Arkansas?
When you age into Medicare at 65, you can expect to pay $150 a month for Plan G in Arkansas. Arkansas follows community rating methods. With Arkansas being the third most unhealthy state, it would make sense to see higher costing healthcare.
How Much is Medigap in California?
It should be no surprise to see California Medigap plans on this list. With this being the third most expensive state and the cost of healthcare on the rise, the state’s place on the list is predictable. At 65, you can expect to pay around $155 for Plan G.
Now, the biggest perk to living in California while on Medicare is the birthday rule. While the birthday rule is beneficial, it’s also a factor in the higher costs of Medigap. Birthday rules also apply in four other states, but California’s cost of living is higher, as are Medigap premiums in the state. California doesn’t have community rating laws.
How Much is Medigap in Massachusetts?
Three states follow their own rules for Medigap, and Massachusetts is one of them. In this state, there are different plan names than traditional options. The comparable option to Plan G would be the 1A Plan, and it would cost about $160 a month. Massachusetts has a two-month window annually where Medigap plans are Guaranteed Issue.
There are plenty of reasons Medigap costs more here. Even the cost of living, Massachusetts, is one of the more expensive places to live in the United States. And, Medigap is no exception.
How Much is Medigap in Florida?
The cost of Plan G for a person turning 65 in Florida would be about $170 a month. The sunshine state isn’t one of the most expensive places to live, but it’s certainly not the cheapest. Florida requires insurers to use issue-age rating methods, but the carriers can choose community rating instead if they wish.
Since the average cost of care per beneficiary is higher in Florida, it would make sense that the premiums for Medigap are higher.
How Much is Medigap in Washington?
Plan G in Washington would cost around $175 a month. Community ratings are the law in Washington. Further, those with pre-existing conditions will only have a 3-month waiting period instead of the usual 6 months. But, once you have Medigap in Washington, you can apply to buy or switch plans at any time.
How Much is Medigap in Vermont?
How Much is Medigap in Minnesota?
Minnesota has different options for supplemental insurance than the traditional plans. And, like most of the states on this list, follows community rating method laws. Residents can customize their policy to have benefits equivalent to Plan G; which would cost about $190 each month.
How Much is Medigap in Connecticut?
In Connecticut, a 65-year-old can expect to pay about $200 each month for Plan G. Medigap plans are Guaranteed Issue year-round in Connecticut.
Also, there are community rating laws in this state. Those living in Connecticut have a higher Social Security benefit than most other states; they’re number two in the country for the highest benefit amount.
How Much is Medigap in Maine?
Plan G in Maine would cost about $205 a month. But, even when you’re 90, you’ll have a premium equal to a person that’s 65. While it may seem like a lot at first, long term, it’s the most comprehensive option.
Those with Medigap in Maine can switch to a different policy with the same or fewer benefits throughout the year. Maine follows community rating method laws. Premiums don’t go off age, those under age 65 still qualify for the same costs as those over 65. Because of these rules, it’s no shock that premiums are much higher in this state.
How Much is Medigap in New York?
Plan G in New York will cost about $270 a month. The highest costing Medigap plans are in New York. They’re Guaranteed-Issue year around, which is not the case in most states.
The cost of living in New York is one of the highest in the country. When you mix year-round Guarantee Issue with community rating and a high cost of living, you get the most expensive Medigap plans.
How to Find Out How Much Medigap Cost in Your State
Since there are so many factors that come into play with Medigap premiums, you can't find a legit estimated cost online. If your state is not listed above, you can find out how much Medigap costs in your state by contacting one of our licensed agents. Even if your state is listed above and you're paying above the amount shown, we can see if a lower-cost option with the same benefits is available to you. If you want to compare other letter plans available in your state, we can also help you with that. Give us a call at the number above. Or, fill out an online rate form to get in touch with an agent.