Average Cost of Supplemental Health Insurance for Seniors With Medicare: What the Data Shows

Medigap vs. Medicare Advantage — two different cost structures

Medigap (Medicare Supplement) plans charge a monthly premium on top of your $202.90/month Part B premium. In return, they cover most or all of the gaps in Original Medicare: the $1,676 Part A deductible, the $283 Part B deductible (Plan G doesn't cover this one), and coinsurance like the $209.50/day for skilled nursing days 21–100.

Medicare Advantage plans often have $0 premiums. But you'll face copays, coinsurance, prior authorizations, and network restrictions at the point of care. Total annual cost depends heavily on how much healthcare you use.

A $0 premium isn't the same as $0 cost. If you're comparing the two, look at total projected out-of-pocket spending, not just the monthly bill.

National averages vs. what NJ and PA seniors actually pay

Nationally, Medigap premiums can range from as low as $32/month for high-deductible plans to over $628/month for older enrollees in expensive markets. The most popular plan, Plan G, averages roughly $150–$250/month for a 65-year-old in the mid-Atlantic region.

NJ and PA have different state rules, different carrier pools, and different pricing. Two carriers selling identical Plan G coverage in the same county can differ by $50 or more per month. That's why comparing isn't optional; it's where the savings are.

How age, gender, and tobacco use affect your premium

Most Medigap carriers in our area use attained-age pricing, meaning your premium starts lower and increases as you get older. A 65-year-old might pay $140/month for Plan G; at 75, the same plan could be $200+.

• Age: The single biggest factor. Locking in during your Medigap Open Enrollment Period (6 months starting the month you're 65 and enrolled in Part B) gets you the lowest rate with no medical underwriting.
• Gender: Women typically pay 5–15% less than men for the same plan.
• Tobacco use: Smokers pay 10–25% more with most carriers.
• Household discounts: Some carriers offer 5–7% off when two people in the same household enroll.

Plan G vs. Plan N — the cost tradeoff most seniors face

Plan G covers everything except the $283/year Part B deductible. Plan N costs less per month but adds small copays at doctor visits (up to $20) and ER visits ($50, waived if admitted).

For many seniors, the $30–$50/month savings on Plan N makes sense if you don't see specialists frequently. For others, Plan G's predictability is worth the extra premium. Neither answer is wrong; it depends on how you use healthcare.

Why the same plan costs different amounts from different carriers

Every Plan G is standardized by Medicare. The benefits are identical no matter who sells it. The only difference between Company A's Plan G and Company B's Plan G is the premium and the company's customer service.

This is why a side-by-side carrier comparison saves real money. I regularly see clients save $400–$600/year by switching to a lower-cost carrier for the exact same coverage.

Request a side-by-side carrier comparison at no cost

I'll pull real quotes from every major carrier in your zip code, organized by plan letter and sorted by price. You'll see exactly what you'd pay, no guessing, no ballpark numbers from a national website.

There's no fee for this. Brokers are paid by the insurance carriers, not by you, and your premium is the same whether you call the carrier directly or work with me.

Related resources

• Medigap Plan G vs. Plan N: Which One Saves You More?
• Medigap Open Enrollment Period: When and Why It Matters
• Medicare Supplement Plans in New Jersey
• Medicare Advantage vs. Medigap: How to Decide