Key Takeaways
- Medigap Plan G premiums rose 12% to 26% in 2026 filings, with some carriers filing increases above 40%.
- Rising healthcare utilization, labor costs, and a shift of sicker beneficiaries back from Medicare Advantage are the primary drivers.
- Beneficiaries have options — including Plan N, High-Deductible Plan G, and state-specific switching rules — that can help reduce costs without abandoning Medigap coverage.
Roughly 12 million Americans carry Medigap policies to help fill the gaps that Original Medicare leaves behind — things like deductibles, coinsurance, and Medicare cost-sharing. For years, annual premium increases were modest. That has changed.
What is Medigap Plan G?
Medigap Plan G is a standardized Medicare Supplement Insurance plan that helps cover the out-of-pocket costs not paid by Original Medicare (Parts A and B), such as deductibles, copayments, and coinsurance. It is one of the most comprehensive Medigap plans available to new enrollees, covering all Original Medicare gaps except the Part B deductible.
In early 2026 rate filings, Medigap Plan G premiums rose between 12% and 26% across many states. Some increases were even steeper — Chubb reportedly filed increases as high as 45% in certain markets. The average monthly Plan G premium was around $164 in 2023, meaning these surges translate to real, meaningful dollars out of your pocket each month.
Why Are Medigap Plan G Premiums Increasing So Significantly?
The short answer is that insurers are paying out more in claims, and those costs are being passed on to policyholders. But several specific factors are converging to make 2026 particularly sharp.
First, the Medigap population is aging. People who enrolled in Plan G years ago are now in their mid-to-late 70s and using significantly more healthcare services. Claims volume is rising, and insurers must adjust premiums to remain actuarially sound.
Second, healthcare labor costs surged in the post-pandemic years and have not fully retreated. Hospital stays, specialist visits, and outpatient procedures all cost more today than they did in 2021 or 2022.
Third — and this is a factor many beneficiaries don't hear about — some enrollees are switching from Medicare Advantage back to Medigap. These are often sicker individuals who found MA's network restrictions and prior authorization requirements limiting. When they move back to Medigap, they bring higher claims with them.
Major insurers including UnitedHealthcare, Aetna, Humana, Blue Cross Blue Shield, Cigna, and Mutual of Omaha are all relying on actuarial firms to justify these filings. Historically, annual Medigap increases ran 3% to 5%.
Medigap Premium Increases by State and Plan Type: 2026 Filings
Rate filings reviewed through early 2026 show Plan G increases clustering between 12% and 26%, though the range varies considerably by state and carrier. Some states with more aggressive regulatory oversight — like New York and Massachusetts — have seen smaller approved increases, while states with lighter-touch review processes have seen larger jumps pass through.
Illinois, Alaska, and Ohio stand out in the data as states where multiple carriers filed double-digit increases. State insurance commissioners play a critical gating role here: they review insurer filings, can request justification, and in some cases reject or modify proposed rates.
Plan G isn't the only plan seeing pressure. Plan N premiums have also risen, though generally at a slower rate. High-Deductible Plan G remains a notably lower-cost option — premiums can run $40 to $70 per month in many markets — but it comes with a deductible of approximately $3,000 before coverage kicks in fully.
Navigating Your Options: Plan G vs. Plan N vs. High-Deductible Plan G
When your Plan G premium jumps significantly, it's worth understanding exactly what alternatives exist. Here is a structured look at the three most commonly considered options:
| Feature | Plan G | Plan N | High-Deductible Plan G |
|---|---|---|---|
| Est. Monthly Premium (2026) | $160–$250+ | $110–$175 | $40–$70 |
| Part B Deductible Covered | No | No | No (after deductible met) |
| Doctor Visit Copays | None | Up to $20 copay | None (after deductible) |
| ER Copay | None | Up to $50 copay | None (after deductible) |
| Annual Deductible | None | None | ~$3,000 |
| Part B Excess Charges Covered | Yes | No | Yes (after deductible) |
Plan N is gaining traction among beneficiaries who visit doctors regularly but want meaningful premium relief. The small copays are manageable for most, and the monthly savings compared to Plan G can be $50 to $80 or more.
High-Deductible Plan G works best for beneficiaries who are relatively healthy and want a financial backstop for major events rather than routine coverage. Assessing which plan fits your situation means honestly evaluating how often you use care and how much financial risk you can absorb in a given year.
Pro Tip
Before your next premium renewal date, request rate histories for your current carrier going back three years — most state insurance department websites publish these filings publicly. If your carrier has been increasing rates faster than competitors year over year, that trend is unlikely to reverse, and shopping now while you may still qualify for underwriting gives you far more options than waiting until the increases become unaffordable.
Regulatory Oversight: The Role of CMS and State Insurance Commissioners
The Centers for Medicare & Medicaid Services (CMS) standardizes what each Medigap plan letter must cover at the federal level. This means a Plan G sold in Texas covers the same benefits as one sold in Oregon. What CMS does not control is the premium insurers charge for those standardized plans.
That responsibility falls to state insurance commissioners. Each state has its own rate approval process. In states with prior approval requirements, insurers must submit actuarial justification before any increase takes effect. In states with file-and-use rules, an increase can go into effect before formal approval, with review happening afterward.
A persistent underlying issue is that Traditional Medicare has no out-of-pocket maximum. Without Medigap, a beneficiary facing a prolonged hospital stay could face tens of thousands of dollars in exposure. This structural gap makes Medigap essential for many people — but it also means demand remains inelastic, giving insurers less pricing pressure from the market.
Strategies for Managing Rising Medigap Costs
Your ability to switch Medigap plans depends heavily on timing and where you live. Outside your Initial Enrollment Period, insurers can generally use medical underwriting — meaning they can charge more or decline coverage based on your health history. That's a significant barrier for many beneficiaries with chronic conditions.
However, several states offer important protections. The "Birthday Rule," available in states including Connecticut, Massachusetts, Maine, and New York, allows you to switch to a comparable or lesser plan around your birthday each year without underwriting. If you live in one of these states, a Medigap birthday rule review each year is a genuine cost-saving opportunity.
Even if you cannot switch today, comparing plans annually builds your understanding of the market. You'll know what comparable coverage costs elsewhere, and you'll be positioned to act quickly during any future guaranteed issue window. Independent brokers who represent multiple carriers are particularly valuable here — they can run side-by-side comparisons across insurers and flag rate increase histories that aren't obvious from a single quote.
Considering Medicare Advantage as an Alternative
Medicare Advantage is often the first alternative that comes to mind when Medigap premiums feel unsustainable. MA plans typically have lower monthly premiums — many $0-premium options still exist in 2026 — and they include an annual out-of-pocket maximum, which Traditional Medicare lacks.
The trade-offs are real, though. MA plans operate within provider networks, meaning your current doctors may not be covered. Prior authorization requirements can delay or complicate access to specialty care. According to KFF data from 2025, roughly 54% of beneficiaries were enrolled in MA, but a notable portion of those who switched back to Traditional Medicare cited prior authorization denials and network limitations as primary reasons.
The MA Trap
If you enroll in Medicare Advantage and later want to return to a Medigap plan, you'll typically face medical underwriting in most states. A health condition you developed while on MA could make it difficult or even impossible to qualify for Plan G coverage at a standard rate. That asymmetry — easy to leave Medigap, hard to come back — is a factor worth weighing carefully before making the switch.
Resources and Support for Medicare Beneficiaries
You don't have to figure this out alone. Every state has a State Health Insurance Assistance Program (SHIP) — a federally funded counseling service that provides free, unbiased guidance on Medicare options. SHIP counselors do not sell insurance and have no financial stake in your decision.
Your state's Department of Insurance website is another underutilized resource. Most publish rate filing data, complaint histories by insurer, and consumer guides specific to your state's Medigap rules. For broader research, KFF (Kaiser Family Foundation) publishes detailed, non-partisan data on Medicare enrollment trends and plan costs. And for personalized plan comparisons, an independent Medicare broker — one who works with multiple carriers rather than representing a single company — can provide a side-by-side view of your real options.
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