In 2025, the average monthly premium for a Medicare Supplement (Medigap) plan is estimated to be approximately $150 to $151, though costs for popular, comprehensive plans like Plan G or N generally range from $90 to $300. Premiums can vary significantly based on age, location, and the specific plan letter, with options ranging from as low as $32 to over $550 per month.
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.
A "good" Medicare Supplement (Medigap) plan costs roughly $90 to $300+ per month, with popular plans like Plan G averaging around $140-$180 and Plan N being slightly cheaper ($110-$140), though costs vary significantly by location, age, tobacco use, and the specific plan chosen. High-coverage options (like Plan G) are pricier, while plans with copays (like Plan N) or high-deductible versions (like HD Plan G) offer lower premiums for less upfront coverage.
Yes, Medicare Supplement (Medigap) plan premiums are very likely to increase in 2026, following significant increases in core Medicare Part B costs and general healthcare inflation, though Medigap plans are sold by private insurers, not CMS, so specifics vary, but rising underlying costs (like the nearly 10% Part B jump) and the need for insurers to cover more expensive care drive these increases, making comparison shopping crucial.
Paying for Medigap
Your insurance company will let you know how to pay for your monthly premium. You also have to pay your monthly Medicare Part B premium. Medicare doesn't pay the premiums for your Medigap policy. Premium amounts typically increase each year.
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 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.
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.
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.
Medicare Supplement Plans F, G, and N have different cost structures, which can impact your out-of-pocket expenses. Plan F typically has the highest premium among the three plans, but it offers the most comprehensive coverage, including coverage for Medicare Part B excess charges.
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.
Here are some of the biggest Medicare mistakes to avoid:
For 2025 Medicare premiums, the income used is your Modified Adjusted Gross Income (MAGI) from your 2023 tax return, two years prior, with higher incomes leading to increased Income-Related Monthly Adjustment Amounts (IRMAA) for Parts B and D. MAGI includes your AGI plus tax-exempt interest and other non-taxable income, determining if you pay higher costs based on specific income brackets set by Medicare.
Yes, senior citizens will pay more for Medicare in 2026, primarily due to a nearly 10% jump in the standard Part B premium to $202.90/month and higher deductibles, affecting most enrollees and consuming a significant portion of the Social Security cost-of-living adjustment (COLA). While Medicare Advantage (Part C) premiums are decreasing on average, out-of-pocket costs and some supplemental benefits are rising, and Part D drug plan maximums are increasing, leading to higher overall expenses for many.
Each fall, when we ask the IRS for information to determine next year's premiums, we ask for tax information to verify your reports of changes affecting your income-related monthly adjustment amounts, if any. We also ask the IRS for your two-year-old MAGI if we've temporarily used three-year-old MAGI.
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.
You can generally change your Medicare Supplement (Medigap) plan for 2025 during the Annual Enrollment Period (October 15 - December 7, 2024), with changes effective January 1, 2025, but you might also have other opportunities through Special Enrollment Periods (SEPs) if you qualify, or at any time in certain states with guaranteed issue rights or birthday rules, though underwriting often applies outside of these windows, notes Medicare.gov, KFF, and NCOA websites.
Medicare Plan G is generally better for most people as it offers nearly identical comprehensive coverage to Plan F but with lower premiums, though Plan F is technically more comprehensive by covering the Part B deductible, but it's only available to those eligible for Medicare before January 1, 2020; for those who can get both, Plan G usually offers better overall value by saving money on premiums, making the small Part B deductible (around $283 in 2026) a worthwhile trade-off.