How Much Could You Save by Switching Your Medicare Supplement Plan?

If you’re on a Medicare Supplement plan, also known as Medigap, there’s a good chance you’re getting strong coverage. But there’s also a very real chance you may be overpaying for it. I see this all the time when I review policies for people who have stayed with the same carrier for years without ever re-shopping their rate. The surprising part is this: you can often lower your premium significantly without giving up a single benefit.

Let me walk you through how Medicare Supplement plans work, why pricing varies so widely, and how switching plans can create real, measurable savings.

First, it’s important to understand what Medicare Supplement plans are designed to do. These plans work alongside Original Medicare Part A and Part B and are built to cover the “gaps” things like deductibles, coinsurance, and copayments. Instead of unpredictable medical bills, you’re trading that uncertainty for a predictable monthly premium and limited out-of-pocket exposure. For many retirees, that predictability is exactly what they want.

One of the biggest strengths of Medicare Supplement plans is stability. These are lifetime policies. They cannot be canceled because of your age or health changes as long as you pay your premiums. They’re also portable across state lines, and there are no provider networks. If a doctor accepts Medicare, they accept your supplement. There are no referrals required and far fewer prior authorization hurdles compared to many Medicare Advantage plans. That simplicity matters, especially as healthcare needs increase.

When we look at the most popular Medigap options, three plans come up most often: Plan F, Plan G, and Plan N. Plan F is the most comprehensive, covering all Medicare-approved gaps, but it is only available to people who became Medicare-eligible before January 1, 2020. It also tends to carry the highest premiums, sometimes reaching several hundred dollars per month depending on age and location. Plan G is now the most commonly selected plan. It covers everything Plan F covers except the small annual Part B deductible. After that deductible is met, coverage is very comprehensive. Plan N has lower premiums but introduces some cost-sharing, including small copays for doctor and emergency room visits and potential excess charges in certain states.

Here’s what many people don’t realize: benefits are standardized by the federal government. That means a Plan G from one insurance company provides the exact same medical benefits as a Plan G from another company. The only major difference is price and customer service experience. You are not buying better coverage by paying a higher premium you may simply be paying more.

Because of that standardization, shopping your plan can lead to meaningful savings. I regularly see cases where people save $25, $50, even $125 per month by switching carriers within the same letter plan. That can translate into $300 to over $1,500 per year without reducing coverage.

For example, I’ve reviewed cases where a mid-70s policyholder was able to save over $800 per year by moving from one Plan F to a lower-priced Plan F with a different carrier. In another situation, switching from Plan F to Plan G created savings of more than $1,500 annually, even after accounting for the Part B deductible. I’ve also seen Plan G policyholders lower their premiums by $400–$500 per year just by changing companies. In some markets, moving from Plan G to Plan N reduced annual premiums by close to $1,000, depending on usage patterns and state rules.

Rates also vary dramatically by geography and age. A person in one state may pay substantially more than someone older in another state for the same plan letter. That pricing spread is exactly why comparison shopping matters. Loyalty to a carrier does not guarantee competitive pricing over time in fact, long-time policyholders are often the ones with the highest legacy rates.

Many people hesitate to shop because they worry about risk or complexity. They assume switching is difficult or that they could lose coverage. In reality, the process is usually simple. Getting quotes does not alert your current carrier. Your existing coverage remains in force during the comparison process. When you switch to the same plan letter, your benefits remain identical because they are standardized. The only thing that changes is the company and the premium.

Another common concern is medical underwriting. In most states, underwriting may apply when switching plans after your initial enrollment window. But even then, if you are approved, your new coverage replaces the old there is no disruption in benefits. You are never left uncovered during a properly coordinated switch. And if you are not approved, you simply stay where you are.

The key takeaway is this: Medicare Supplement coverage is standardized, but pricing is not. That creates an opportunity. If you haven’t reviewed your Medigap premium in a few years, you may be paying more than necessary for the exact same protection. A quick comparison check often taking less than a minute with the right tools can reveal whether better pricing is available.

I always tell people not to assume they’re already in the best position. Verify it. A short review could put hundreds or even thousands of dollars back into your retirement budget each year without sacrificing the coverage stability that made you choose a supplement plan in the first place.