New York, Connecticut, Florida, and Washington consistently rank among the states with the most expensive Medigap plans, often driven by high costs of living, intense medical utilization, and specific state regulations like community rating. New York is frequently cited as the most expensive, with premiums significantly higher than the national average.
The average monthly premium for Medicare Supplement plans varies depending on the state. The average monthly premium for Medigap policies was lowest in Wisconsin, Hawaii, and Iowa at around $102 monthly. On the other hand, New York had the highest average monthly premium for Medigap plans, which was $304.72 per month.
Overall, the Commonwealth Fund found that Vermont, Utah, and Minnesota were the top three ranked states for Medicare beneficiaries, while Louisiana, Mississippi, and Kentucky were the bottom three.
The "best" Medigap plan depends on your needs, but Plan G is often recommended for new enrollees (post-2020) for comprehensive coverage after the Part B deductible, while Plan N offers lower premiums with small copays for doctor/ER visits. Top companies offering these plans include AARP/UnitedHealthcare, Mutual of Omaha, Anthem, Wellabe, Cigna, and Blue Cross Blue Shield, but the ideal provider offers a strong combination of price, customer service, and financial stability for your chosen plan.
Look for companies with positive reviews and a history of satisfied customers. Ask for Recommendations: Talk to friends, family, or healthcare providers who have experience with Medigap plans. They may be able to recommend reputable companies or share their experiences to help you make an informed decision.
#1 Illinois. Although Illinois is often thought of as a cultural hotspot, with suburban living and wine trails to enjoy, this state has significant long-term debts, unfunded pension liabilities, and big budget imbalances. These complications make Illinois our pick as the worst state for retirees.
There isn't one single state with the absolute highest rates across every metric, but Vermont, Alaska, New Jersey, Massachusetts, and New York consistently rank among the most expensive for health insurance premiums, with Vermont often topping charts for individual silver plans, while Alaska leads in overall costs for employer plans, and Northeastern states like NJ/MA/NY have high costs due to high spending and mandates. Factors like provider shortages (Alaska) and state regulations (Northeast) influence these high costs.
Insurance companies set prices for Medigap policies in 1 of 3 ways: Attained-Age Rating — This is the most common way policies are priced in California. Attained age-rated policies increase in price as you age, because as you get older, you typically require more health care.
State laws can provide further protections, but only four states— Connecticut, Massachusetts, Maine, and New York—require either continuous or annual guaranteed issue protections for Medigap for all beneficiaries in traditional Medicare ages 65 and older, regardless of their medical history.
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.
Vermont, Utah and Minnesota topped the Commonwealth Fund's Medicare performance scorecard in 2025, whereas Kentucky, Mississippi and Louisiana struggled the most.
The "best" Medigap plan depends on your needs, but Plan G is often recommended for new enrollees (post-2020) for comprehensive coverage after the Part B deductible, while Plan N offers lower premiums with small copays for doctor/ER visits. Top companies offering these plans include AARP/UnitedHealthcare, Mutual of Omaha, Anthem, Wellabe, Cigna, and Blue Cross Blue Shield, but the ideal provider offers a strong combination of price, customer service, and financial stability for your chosen plan.
Here are some of the biggest Medicare mistakes to avoid:
No single Medicare plan pays 100% of everything, but Medigap Plan F (for those eligible before 2020) and Medigap Plan G (most newer enrollees) cover nearly all gaps in Original Medicare after the Part B deductible, paying 100% of approved costs, while Medicare Advantage (Part C) plans have an out-of-pocket maximum, after which they pay 100% of covered services. Other Medigap plans like K, L, or N offer lower premiums in exchange for sharing some costs until an annual limit is met, after which they cover 100%.