Medicare Supplement Plans Comparison by State: Regional Price Differences Explained
Medicare Supplement Plans Comparison by State: Regional Price Differences Explained
Medigap premiums vary significantly by state—sometimes by 50% or more for the same plan. This guide explains why and helps you compare options in your state.
Quick Answer
State differences in Medigap premiums are driven by:
- State regulations (rating methods allowed)
- Healthcare costs in your area
- Competition among insurers
- State-specific consumer protections
Use our Medicare Supplement Penalty Calculator to compare premiums across plans for your specific state and age.
Detailed Guidance
States with Lowest Average Medigap Premiums
Based on average premiums for a 65-year-old non-tobacco user:
| Rank | State | Plan G Avg | Why Lower? |
|---|---|---|---|
| 1 | Utah | ~$115 | High competition, younger population |
| 2 | Hawaii | ~$120 | Community rating regulations |
| 3 | Arizona | ~$125 | Competitive market, lower healthcare costs |
| 4 | Colorado | ~$128 | Multiple insurers, issue-age rating available |
| 5 | Nevada | ~$130 | Growing market with competition |
States with Highest Average Medigap Premiums
| Rank | State | Plan G Avg | Why Higher? |
|---|---|---|---|
| 1 | New York | ~$210 | Community rating, high healthcare costs |
| 2 | Connecticut | ~$195 | High cost of living, guaranteed issue year-round |
| 3 | Massachusetts | ~$190 | Different plan standardization, high costs |
| 4 | Florida | ~$185 | Large senior population, healthcare costs |
| 5 | New Jersey | ~$180 | High healthcare costs, regulations |
Rating Methods by State
Attained-Age Rating (premiums increase as you age):
- Most states
- Lower initial premiums but higher long-term costs
- Examples: Florida, Texas, California, Ohio
Issue-Age Rating (premiums based on age at purchase):
- Premiums don’t increase due to age
- Higher starting premium but more predictable
- Examples: Arizona, Colorado, Idaho, Washington
Community Rating (same premium regardless of age):
- Everyone pays the same base rate
- Best for older applicants
- Examples: Arkansas, Connecticut, Maine, Massachusetts, Minnesota, New York, Vermont, Washington
States with Special Medigap Rules
Massachusetts, Minnesota, Wisconsin:
- Different standardized plans than the other 47 states
- Plan options differ significantly
- Cost structures vary
Guaranteed Issue Year-Round States:
- Connecticut, Maine, Massachusetts, New York, Vermont
- Can switch Medigap plans without medical underwriting annually
- Premiums may be higher due to adverse selection
Birthday Rule States:
- California: Can switch to same or lesser coverage within 30 days of birthday
- Oregon: Similar birthday rule applies
- Illinois: Can switch within 45 days of birthday
See our Medigap Guaranteed Issue Rights by State guide for more details.
How to Get State-Specific Quotes
- Visit Medicare.gov’s Plan Finder
- Enter your ZIP code
- Filter for Medigap plans
- Compare at least 3 insurers (prices vary by 30-50%)
- Check our calculator for cost modeling
State Comparison Checklist
- Identify your state’s rating method
- Check if your state has special Medigap rules
- Compare premiums from at least 3 insurers
- Consider annual rate increase history
- Look for state-specific discounts
- Verify household discount availability
- Check if your state allows tobacco surcharges
- Review state insurance department resources
- Consider out-of-state options if you split time between states
Frequently Asked Questions
Can I buy a Medigap plan from a different state?
Generally, you must buy a plan in the state where you legally reside. However, the plan covers you nationwide. If you have multiple residences, use your primary residence for enrollment.
Why do premiums vary so much within the same state?
Within a state, premiums vary by:
- ZIP code (urban vs. rural)
- Insurance company pricing strategy
- Tobacco use
- Gender (in states that allow it)
- Household discounts
Should I move to a cheaper state for Medigap?
Moving solely for Medigap savings usually doesn’t make financial sense. However, if you’re already considering relocation, factor in Medicare costs along with taxes, housing, and other expenses.
Do all insurance companies offer Medigap in my state?
No. Each insurer decides which states to serve and which plans to offer. Major national carriers typically operate in most states, while smaller regional carriers may have limited footprints.
How do I file a complaint about a Medigap insurer in my state?
Contact your State Insurance Department. They regulate Medigap plans and handle consumer complaints. The Medicare hotline (1-800-MEDICARE) can also help with plan issues.