How AARP Medigap Plans Compare in Cost 💊

AARP Medigap plans offer supplemental coverage to fill gaps in Original Medicare. Understanding how their costs compare requires knowing what affects pricing, which plans exist, and what factors change your personal expenses. The right plan for one person may cost more—or deliver less value—for another.

What Medigap Plans Are and Why Cost Varies

Medigap (also called Medicare Supplement Insurance) pays some of the costs Medicare doesn't: deductibles, coinsurance, and copayments. AARP partners with UnitedHealthcare to offer these plans.

Medigap premiums vary widely because several factors influence pricing:

• Your age when you enroll (earlier enrollment often locks in lower rates)
• Your location (state and county affect available plans and rates)
• The insurance company (different carriers price plans differently)
• Your gender (some insurers factor this in)
• Your health history (timing of enrollment matters for underwriting)
• The specific plan letter (Plan G, Plan N, etc. have different benefit structures and price points)

The Plan Letters: Coverage Levels and Cost Trade-offs

Medigap plans are standardized by the federal government and identified by letters (A, B, D, G, K, L, M, N). Each letter represents a fixed set of benefits—the same across all insurers nationwide. However, the price for that identical coverage varies by company and location.

The lowest-premium plan isn't automatically the cheapest over time. A plan with a lower monthly cost might have higher deductibles or copays that cost you more when you actually use care.

Age at Enrollment: The Biggest Cost Driver

When you first qualify for Medicare and enroll in a Medigap plan, insurers often can't deny you or charge more based on health conditions (this depends on your "open enrollment" window). However, if you enroll later, some companies may underwrite your application or charge higher premiums.

Additionally, age-rated pricing means your premium typically increases each year as you age—sometimes significantly. Starting coverage earlier often results in lower lifetime costs, even if you don't use much care initially.

How to Evaluate Plans Across Insurers

Since AARP offers Medigap plans but competing insurers do as well, comparing costs involves:

1. Getting quotes for the same plan letter from multiple insurers in your area
2. Checking the benefits summary to confirm identical coverage (same letter = same benefits)
3. Reviewing premium schedules to understand how costs will increase over time
4. Assessing customer service ratings and claim-handling reputation alongside price

The same Plan G from Company A and Company B offers identical benefits, but prices may differ significantly—sometimes hundreds of dollars per year.

Location Matters More Than You'd Expect

Because Medigap is regulated by state, available plans and pricing vary by geography. A plan or price available in one state may not exist in another. Carriers also adjust rates by region within states.

If you're considering a move or have recently moved, getting new quotes for your new location is essential—your costs could change substantially.

Your Next Step: Knowing What to Evaluate

Before choosing a Medigap plan, you'll need to:

• Confirm which plan letters are available to you (varies by state and insurer)
• Get specific premium quotes from multiple carriers for your location and age
• Understand the premium increase schedule (how much you'll pay in future years)
• Decide whether low monthly premiums or lower overall out-of-pocket coverage matters more for your healthcare patterns
• Verify enrollment timing and any health-based underwriting rules that apply to you

A licensed insurance agent, benefits counselor, or your State Health Insurance Assistance Program (SHIP) can help you gather current rates and understand local options—which is beyond what general information alone can provide.