Medigap premiums are seeing significant increases in 2025, with many carriers implementing rate hikes, often in the double digits. While average monthly premiums for popular plans like G, F, and N vary by age and location, some, like Plan G for a 65-year-old, are expected to range from $ 200 $ 2 0 0 to $ 260 $ 2 6 0 . Some insurers have filed for rate increases exceeding 15% in early 2025.
Medicare supplemental insurance premiums in 2025 typically range from about $32 to $550 per month, with most beneficiaries paying somewhere in the middle of that range depending on their plan choice, age, location and other factors.
The Centers for Medicare & Medicaid Services (CMS) has set the standard monthly Part B premium at $202.90 in 2026, an increase of $17.90, or just under 10 percent, from the 2025 premium of $185.00.
The standard monthly premium for Medicare Part B enrollees will be $202.90 for 2026, an increase of $17.90 from $185.00 in 2025. The annual deductible for all Medicare Part B beneficiaries will be $283 in 2026, an increase of $26 from the annual deductible of $257 in 2025.
Paying for Medigap
Medicare doesn't pay the premiums for your Medigap policy. Premium amounts typically increase each year.
The average monthly cost for a standard Medicare Supplement Plan G generally ranges from about $90 to $200+, with some estimates showing averages around $150-$180 for younger enrollees, but costs vary significantly by location, age, tobacco use, and insurer, with high-deductible options starting much lower (around $30-$70/month). Expect premiums to rise with age, potentially reaching $200+ for older individuals, and remember you must first pay the annual Medicare Part B deductible ($283 in 2026) before Plan G starts paying.
For the average retired worker, the 2.8 percent COLA is expected to increase their monthly benefit by about $56. This will raise the average payment from approximately $2,008 in 2025 to about $2,064 in 2026. Social Security retirement beneficiaries will see this increase reflected in their January 2026 payments.
Yes, the Medicare Part D "donut hole" (coverage gap) is officially eliminated as of January 1, 2025, thanks to the Inflation Reduction Act, simplifying coverage into three phases: deductible, initial coverage, and catastrophic, with a new $2,000 out-of-pocket spending cap that eliminates the gap where higher costs used to occur.
Your CalPERS health coverage will automatically be canceled the first day of the month after you turn 65. Review Cancellation of CalPERS Health Coverage for information on reinstating your health coverage.
The best time to buy a Medigap policy is during your Medigap Open Enrollment Period. This is the 6-month period that starts the first day of the month you're 65 or older and signed up for Part B. After this period, your options to buy a Medigap policy may be limited and the policy may cost more.
The most popular Medicare Supplement (Medigap) plan for new enrollees is Plan G, offering comprehensive coverage for nearly all Original Medicare costs (except the Part B deductible) at a predictable price, while Plan N is popular for lower premiums with some copays, and Plan F remains popular for those eligible for Medicare before 2020, covering everything, including the Part B deductible, notes Boomer Benefits.
These amounts are set according to formulas in the Medicare law and depend on historical and projected health care costs. The standard monthly premium for Medicare Part B will be $202.90 a month for 2026, an increase of $17.90 from $185.00 in 2025.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.
In 2026, the Centers for Medicare and Medicaid Services (CMS) is ending a program called the Value-Based Insurance Design (VBID) model. This program helped health plans give extra non-medical benefits, like credits for healthy food and utilities.
The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 71 million Social Security beneficiaries in January 2026. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2025. (Note: Some people receive both Social Security and SSI benefits.)
Medicare premiums and deductibles are increasing for 2026, with the standard Part B monthly premium rising to $202.90 (up $17.90) and the Part B deductible increasing to $283 (up $26), driven by rising healthcare costs, while Part A hospital deductibles also go up to $1,736. These changes, announced by CMS, will mean higher out-of-pocket costs for many beneficiaries, impacting those on fixed incomes, with Part D drug costs also facing caps.
Here are some of the biggest Medicare mistakes to avoid: