Medicare Supplement Insurance: 2021 Price Index Reveals Wide Spread in Costs

For the millions of Americans turning 65 every year choosing the best Medicare plan can be challenging.  Comparing plans and options to satisfy your health care preferences and budget limitations can literally take days of research.

Many wrongly perceive Medicare plans to be relatively uniform when quite the opposite is true.  More than ever, there are numerous decision points with plan choices that can literally be Zip Code specific.  For those just qualifying for Medicare, the decisions you make initially may indeed be irreversible.

With rare exception, the cost of Medicare plan coverage is a factor that most individuals take into consideration.  Coverage can vary significantly from zero-dollar premium Medicare Advantage plans to Medigap plans that can range widely in cost depending on where you live, your age and possibly your gender.

According to the 2021 Medicare Supplement Insurance Price Index, a male turning 65 in Dallas can purchase Medigap Plan G protection for as little as $109 monthly.  Virtually identical coverage for a 65-year-old male in New York City can cost as much as $476.

The latest data reported by the American Association for Medicare Supplement Insurance examined costs for Medigap Plan G.  The Federal government has standardized Medicare Supplement plans (often referred to as Medigap) that insurance companies must offer.  Currently, Plan G is the most popular choice among seniors turning 65.

While the plan features and benefits are virtually identical, each insurer sets its own plan costs.   In general, at age 65 women pay less for an insurer's offering than men.  

No single insurer consistently had the highest costs across the top-10 major metropolitan areas studied by the organization.  Similarly, no single insurance company offered the least costly plan.

Lowest & Highest Medicare Supplement Insurance Prices

Prices for individual turning age 65 (non-tobacco use); Medigap Plan G

Source: American Association for Medicare Supplement Insurance 2021 Price Index for Top-10 Metro Areas

Tips To Find Best Medicare Pricing

There are countless resources available to help consumers learn more about Medicare plan options.  These range from the government's Medicare.gov website to the many resources almost continually advertising on television.

Most experts advise working with a Medicare insurance agent who has knowledge of Medicare Advantage as well as Medigap and Prescription Drug Plans.  It is important to note that some represent only one insurance company.  These individuals are agents of that particular company and thus only able to sell that insurer's plan.  

Conversely, an insurance broker can represent multiple insurance companies.  Often they may not be able to offer the plan sold exclusively by agents.  As a result, it's generally advisable to speak with more than one individual prior to making such an important decision.