Medicare Supplement Rates
By State Comparison
Why identical Medicare Supplement plans can cost 2-3x more in different states, and what factors drive these dramatic pricing differences.
Location Makes a Huge Difference
The same Plan G from the same insurance company can cost $120/month in Iowa and $350/month in New York - nearly 3x more for identical coverage.
This happens because Medicare Supplement insurance is regulated at the state level, creating dramatically different pricing environments across state lines.
📍 Understanding these differences can save you hundreds or even thousands annually.
State Pricing Tiers: Plan G Examples
Typical Plan G rates for a 65-year-old non-smoker. Actual rates vary by carrier and specific location within each state.
Low-Cost States
$120-180/mo
Plan G Range
Example States:
Iowa
~$125
Nebraska
~$135
Wisconsin
~$145
Indiana
~$155
Alabama
~$165
Arkansas
~$175
Medium-Cost States
$180-250/mo
Plan G Range
Example States:
Texas
~$195
Georgia
~$205
Virginia
~$215
Colorado
~$225
Arizona
~$235
Michigan
~$245
High-Cost States
$250-400/mo
Plan G Range
Example States:
California
~$265
Florida
~$285
New Jersey
~$315
New York
~$340
Connecticut
~$365
Alaska
~$385
The Price Difference
A retiree in Iowa pays about $1,500 annually for Plan G, while someone in Connecticut pays $4,380 for identical coverage - a difference of $2,880 per year or $240 per month.
Why Rates Vary So Dramatically
State Regulations
Rating Method Requirements
Some states require community rating (same price for everyone), others allow attained-age or issue-age rating, creating different pricing structures.
Rate Review Processes
States with stricter rate review may have lower increases but higher starting prices. Others allow market-based pricing with more volatility.
Plan Availability Rules
Some states (MA, MN, WI) have unique plan structures that replace standard Medigap plans, affecting pricing and options.
Market Factors
Claims Experience
States with higher medical costs, more specialists, or sicker populations see higher Medigap premiums to cover increased claims.
Competition Levels
States with more insurance companies competing typically have lower rates. Rural states may have fewer options and higher prices.
Population Demographics
States with larger populations of healthy retirees (like Florida) may have different risk pools than states with aging industrial populations.
Special State Programs
Massachusetts
Unique Plans
Core plan plus Supplement 1 instead of standard A-N plans. Community-rated pricing statewide.
Rate Impact
Generally higher premiums but predictable increases. No age-based rating allowed.
Minnesota
State-Specific Plans
Basic, Extended Basic, and other unique plan designs. Community rating required.
Pricing
Moderate rates with stable increases. Limited plan options but comprehensive coverage.
Wisconsin
Base + Riders
Base plan plus optional riders for additional coverage. Community rating structure.
Cost Advantage
Among the lowest Medigap costs nationally. Simple, affordable structure.
Regional Cost Patterns
Lowest-Cost Regions
Midwest Rural States
Iowa, Nebraska, Kansas, North Dakota
- • Lower medical costs
- • Stable populations
- • Less regulation
- • Strong competition
Southern States
Alabama, Arkansas, Mississippi, South Carolina
- • Lower cost of living
- • Competitive markets
- • Age-based rating allowed
Highest-Cost Regions
Northeast Corridor
New York, New Jersey, Connecticut, Massachusetts
- • High medical costs
- • Strict regulations
- • Community rating requirements
- • High cost of living
High-Population States
California, Florida (varies by region)
- • High claim frequency
- • Expensive medical care
- • Regulatory complexity
What Happens When You Move
Good News
Your Coverage Travels
Existing Medigap Plans
Your current Medigap plan works nationwide. You can keep your existing coverage when you move to any state.
Rate Adjustments
Most insurers will adjust your rate to match the new state's pricing structure. Often happens automatically.
Same Plan Availability
Standard plans (G, N, etc.) are available nationwide. Your Plan G in Florida works the same as Plan G in Texas.
Things to Consider
Potential Issues
Rate Changes
Moving to a high-cost state means higher premiums. Moving to a low-cost state usually means savings.
Carrier Availability
Your current insurer may not sell policies in your new state, requiring a plan change with medical underwriting.
Special State Rules
Moving to MA, MN, or WI means different plan structures. Some states provide guaranteed issue rights for new residents.
Pro Tip for Movers
Before moving, check if your new state offers guaranteed issue rights for new residents. Some states provide a window to change plans without underwriting when you relocate.
Find Your State's Best Rates
Since Medicare Supplement rates vary dramatically by location, it's essential to compare actual rates from multiple carriers in your specific area, not just generic national averages.
What to Compare:
- • Plan G vs Plan N rates in your ZIP code
- • Multiple carriers for the same plan
- • Different rating methods (attained age vs community)
- • Rate increase history by company
State-Specific Factors:
- • Available carriers and plan options
- • State regulations affecting pricing
- • Special enrollment rights in your state
- • Regional rate variations within the state
Related Articles
Plan G vs Plan N Cost Analysis
Detailed cost comparison using official government data.
When Companies Can Deny Coverage
Understanding guaranteed issue rights and medical underwriting by state.
Medicare Enrollment Periods Guide
Critical differences between Medicare Supplement and Annual Open Enrollment.