Blog / Medigap

How much does a Medicare Supplement cost?

Prices differ for coverage that is identical. Here is what moves the number, and what to look at besides the first year quote.

Updated September 3, 2026 · 3 min read · by Gerino Alejos

There is no single price. Your premium, the monthly bill for the coverage, depends on the plan letter you pick, your age, where you live, whether you use tobacco, and which company sells the policy.

The benefits inside each letter are written into the law, the same at every company. So a price spread is about pricing, not about what you get.

What drives your premium

• Plan letter. A plan that covers more of your costs, like Plan G, runs higher than a lighter one like Plan N, or a high deductible version where you pay a set amount yourself first.
• Age. Most Texas companies price by attained age, which means the premium goes up as you get older.
• Gender. Women usually pay somewhat less.
• Tobacco use.
• Your ZIP code.
• The company's own pricing and what its claims have cost.

The three pricing methods

How a company handles age matters more than the first year quote. There are three methods.

• Attained age. The premium climbs as you age, usually lowest at 65 and highest at 80. The most common method in Texas.
• Issue age. The premium is set by your age on the day you bought it. It does not rise as you age, though general rate increases still move it.
• Community rated. Everyone pays the same, whatever their age. This one is rare.

Rate increases

Age is not the only thing that moves your bill. Every company raises rates from time to time to keep up with claims and medical costs. Some have a long record of moderate increases. Others open low, then raise sharply.

Ask what a company's increases have looked like over the last several years. That record tells you more about your ten year cost than the opening quote does. See why premiums go up.

What you should compare

1. The same plan letter at several companies. The coverage is identical, so you are comparing price only.
2. The pricing method behind each quote.
3. Each company's record of rate increases.
4. Household discounts, often 5 to 12 percent, when two people in one home both hold a policy. Many never bring it up.
5. The company's financial strength rating, an outside grade of how able it is to pay claims.

The other half of your cost

A supplement does not cover prescriptions. You also need a standalone Part D plan, a separate drug plan you buy on its own. Put that monthly bill in your budget.

This matters when you compare a supplement with a Medicare Advantage plan, which bundles medical and drug coverage. On one side, the supplement premium plus the drug plan premium plus the Part B deductible, what you pay yourself each year before Part B starts paying. On the other, the Advantage plan's premium plus its out of pocket maximum, the most it can make you pay in a year. See the comparison.

Rates move with company, age and ZIP code, and they change over time. We would rather run current quotes for you than post numbers that go stale. See how to compare rates.

Ask for the same plan letter at several companies, with the pricing method on each quote. Call our McAllen office at (956) 687 3334, or enter your ZIP code in the plan pricing box on this page.

Gerino Alejos

Licensed insurance agent · License 3128710 · NPN 18243381

Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.