Costs & IRMAA
KFF: Nearly Half of Traditional Medicare Beneficiaries Hold Medigap, as Average Monthly Premiums Reach 244 Dollars
A KFF analysis released two days before open enrollment finds 12.9 million people carry supplemental Medigap policies, that average premiums rose 7 percent in a single year, and that Plan G now covers nearly half of all policyholders.
By the Goodsurance editorial teamOctober 15, 2026
A new analysis from KFF, published two days before the Medicare Annual Enrollment Period opened, finds that 12.9 million people with traditional Medicare carry Medigap supplemental insurance policies, representing 46 percent of traditional Medicare beneficiaries.
The average monthly premium across all Medigap policyholders reached 244 dollars in 2025, a 7 percent increase from 228 dollars the year before. Over the five years from 2020 to 2025, average premiums climbed 20 percent, from 203 dollars per month.
New KFF data: 12.9 million traditional Medicare beneficiaries carry Medigap, and the average monthly premium reached 244 dollars in 2025.
Plan G has become the most common Medigap option, covering 6.3 million people, or nearly half of all Medigap policyholders. Its average monthly premium was 194 dollars in 2025, but Plan G premiums grew 38 percent between 2020 and 2025. Plan F, no longer available to new Medicare enrollees but still carried by 4.2 million existing policyholders, averaged 325 dollars per month.
State-level variation is wide. Enrollment in Medigap ranged from 14 percent of traditional Medicare beneficiaries in Hawaii to 75 percent in Iowa. Average monthly premiums ranged from 214 dollars in Hawaii to 306 dollars in New York.
KFF also found that Medigap policyholders are more likely than other traditional Medicare beneficiaries to be White, to have household incomes above 40,000 dollars, and to report good health. Because Medigap premiums are generally not income-based, cost can be a barrier for lower-income beneficiaries who might otherwise seek supplemental coverage.
The findings arrive as Medicare's Annual Enrollment Period begins, giving beneficiaries until December 7 to compare and change plans for 2027.
In plain words
Medigap is extra insurance that works on top of Original Medicare. It helps pay costs like copays and hospital bills. About 12.9 million people have a Medigap plan. That is close to half of all people in Original Medicare. The most popular type is called Plan G. It covers 6.3 million people, nearly half of all Medigap members. The average monthly cost for all Medigap plans together was 244 dollars in 2025. That is up from 228 dollars the year before. Plan G costs about 194 dollars a month on average. But its price went up 38 percent over five years. Plan F, which new Medicare enrollees can no longer buy, costs about 325 dollars a month on average. Prices vary a lot by state. Iowa has the highest share of people with Medigap. Hawaii has the lowest. This report came out just before open enrollment started on October 15. You have until December 7 to compare plans and make changes for 2027.
Understand the basics first
Source: KFF
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