Which Medigap Plan Costs the Least?

Medicare Supplement Insurance, commonly known as Medigap, is a popular way for Medicare beneficiaries to protect themselves from high out-of-pocket healthcare costs. These plans help cover the expenses that Original Medicare doesn’t fully pay for, such as deductibles, copays, and coinsurance.

With several Medigap plans to choose from, one of the most common questions people ask is: Which Medigap plan costs the least? It’s a fair question, especially for individuals on a fixed income or looking to balance solid coverage with affordability.

The answer isn’t as simple as pointing to a single plan. Costs can vary widely based on the plan’s structure, the insurance carrier, where you live, and other personal factors.

How Medigap Plans Work

Medigap plans are standardized supplemental insurance policies offered by private companies to help pay for costs not covered by Medicare Part A and Part B. While the coverage for each plan type is standardized (meaning Plan N offers the same benefits no matter which company sells it), the monthly premiums can differ significantly.

These plans are labeled with letters (such as Plan A, Plan G, Plan N, and so on) and each offers a different level of coverage. You cannot have a Medigap plan if you are enrolled in a Medicare Advantage plan, and you must have both Medicare Part A and Part B to be eligible.

Choosing a plan based on monthly premium alone may seem like a good strategy, but that approach can leave you with more out-of-pocket costs over time. Understanding the trade-offs is essential.

Which Plans Typically Have the Lowest Premiums?

If your main goal is to find the least expensive Medigap plan, a few stand out due to their lower monthly costs. However, it’s important to note that these lower premiums usually come with reduced coverage or higher out-of-pocket costs when you need care.

Plan A is generally the lowest-cost Medigap plan in many areas. It offers very basic coverage, paying for coinsurance related to Medicare Part A and B, but not much else. It does not cover the Part A deductible, skilled nursing care coinsurance, or excess charges. This can leave you exposed to significant costs if you end up needing more care than expected.

Plan K and Plan L are also low-premium options. These plans work differently by covering a percentage of your out-of-pocket costs rather than the full amount. For example, Plan K covers 50% of certain services like hospice care and skilled nursing facility coinsurance, while Plan L covers 75%. Both plans also include an annual out-of-pocket limit, which can offer some protection from extremely high bills.

Plan N is another affordable choice that offers a good balance between cost and coverage. It typically has lower premiums than more comprehensive plans like Plan G, but it requires you to pay small copayments for doctor visits and emergency room trips. Plan N also doesn’t cover Medicare Part B excess charges, which are extra fees some doctors charge if they don’t accept Medicare’s approved amount as full payment.

Of all the plans mentioned, Plan A usually has the lowest premium, followed by Plan K and Plan L, with Plan N often falling somewhere in between based on location and insurer.

Why the Cheapest Plan Might Cost You More

It’s easy to focus on the monthly premium when shopping for a Medigap plan, but doing so could lead to higher expenses down the road. Lower-premium plans tend to offer less coverage, which means you’ll pay more out-of-pocket if you need frequent care, tests, or hospital stays.

For example, Plan A may be the cheapest upfront, but if you’re hospitalized and don’t have coverage for the Part A deductible or skilled nursing coinsurance, your bill could climb quickly. Similarly, with Plan K or L, the lower premiums are offset by the fact that you’re responsible for 25–50% of certain costs until you reach the plan’s annual limit.

Even Plan N, which is popular for its lower premiums and solid coverage, might not be ideal for someone who frequently visits specialists or lives in a state where excess charges are common. These small recurring fees can add up.

In short, the “cheapest” plan may not be the most cost-effective in the long run—especially if your health needs change over time.

What Affects the Cost of a Medigap Plan?

Beyond the plan letter itself, several other factors influence how much you’ll pay for Medigap coverage.

Where you live plays a major role. Premiums can vary dramatically between states, or even ZIP codes. Someone in a rural area might pay significantly less than someone in a major city.

Your age and gender can also affect pricing. Some insurance companies use attained-age or issue-age pricing models, which means your premium may increase as you get older. Others use community-rated pricing, where everyone in a geographic area pays the same rate regardless of age.

Tobacco use is another factor. Smokers or tobacco users almost always pay higher premiums than non-smokers.

Finally, when you apply matters. If you apply during your Medigap Open Enrollment Period (the six months that start when you’re first 65 or older and enrolled in Medicare Part B) you’ll get the best pricing with no medical underwriting. Applying outside that window could mean higher premiums or even denial of coverage based on health history.

How to Compare Cost vs. Coverage

When deciding which Medigap plan is right for you, it’s important to look at more than just the monthly premium.

Start by estimating how often you expect to use your Medicare coverage in the coming year. If you’re healthy and rarely visit the doctor, a lower-cost plan with higher out-of-pocket costs might make sense. But if you have chronic conditions or see specialists regularly, paying more for comprehensive coverage could save you money over time.

You’ll also want to consider the stability of the plan’s rates. Some insurers are known for steep annual increases, while others keep their pricing more stable. Comparing companies, not just plan types, is critical to finding a plan that stays affordable.

And remember: all Medigap plans give you access to any provider nationwide that accepts Medicare. So no matter which plan you choose, you’ll have a broad network of doctors and hospitals at your fingertips.

When a Low-Cost Medigap Plan Might Be a Good Fit

For certain individuals, a lower-cost Medigap plan can be a smart choice. If you’re in excellent health, don’t see many doctors, and are mainly looking for protection against major expenses, a plan like Plan A or Plan N could provide good value.

Low-cost plans may also be ideal for people on a fixed income who simply can’t afford higher premiums. Having some coverage is better than none, and plans like K and L at least put a cap on how much you could be forced to pay out-of-pocket in a worst-case scenario.

As long as you understand the trade-offs and have realistic expectations about potential costs, a budget-friendly plan can work well.

Shop for Medigap Plans Today

At Local Medicare Specialists, we believe there’s no one-size-fits-all solution when it comes to Medicare Supplement plans. Our licensed agents take the time to understand your budget, your health, and your long-term goals to help you compare not just premiums, but the total value of each option.

We’ll show you rates from multiple insurance companies, explain how each plan works in plain language, and help you feel confident about your choice, whether you’re looking for the lowest premium or the best overall coverage.