Medicare Supplement Plan N Cost in 2026
The year 2025 brought something Medicare beneficiaries had never seen before: the most expensive Medicare Supplement (Medigap) rate increases in history.
In some states, premiums for Plan G spiked by 8% to as much as 50%, shaking confidence in what has traditionally been the most stable part of the Medicare landscape.
This kind of surge is unprecedented – and it has left many questioning how they can keep their coverage affordable in 2026 and beyond.
Heading into 2026, many are turning to Plan N for relief – and the premium differences are hard to ignore. Cigna stands out as one of the most affordable carriers, with estimated rates ranging from $135 to $150 per month, approximately 10–15% lower than Aetna, 15–20% below Mutual of Omaha, and 20–25% lower than many Blue Cross Blue Shield options.
This kind of savings makes Plan N a strong alternative for those seeking stability without overpaying.
In the sections below, we’ll explain how to compare rates in 2026, why Plan N deserves a closer look, and how to protect your budget while keeping the reliable coverage Medigap is known for – even in an unpredictable market.
2025: A Record-Breaking Year for Plan G Increases
The year 2025 will be remembered as a turning point for Medicare Supplement insurance, especially for Plan G, the most popular Medigap option in the country. Across the nation, beneficiaries saw rate hikes unlike anything ever recorded, with increases starting around 8% and climbing as high as 50% in certain states.
For many retirees, this was more than a routine adjustment – it was a shock to the system. Plan G has long been viewed as a stable, predictable solution compared to Medicare Advantage, but these steep increases showed that even Medigap is not immune to rising healthcare costs and inflation.
This reality has created a new normal for Medicare Supplement members. Premiums can no longer be assumed to rise gradually or predictably. Instead, beneficiaries must actively shop and compare carriers each year to avoid overpaying for identical coverage.
The historic increases of 2025 serve as a wake-up call: in 2026, smart Medicare planning isn’t optional – it’s essential.
Why Are Medicare Supplement Rates Rising So Sharply?
The record-setting rate hikes of 2025 didn’t happen in a vacuum. Several factors combined to push monthly premiums higher than beneficiaries had ever seen before:
#1. Rising Healthcare Costs. Hospital stays, doctor visits, and especially outpatient procedures have become more expensive in recent years. Since Medigap plans are designed to cover the gaps in Original Medicare, higher underlying medical costs inevitably drive premiums upward.
#2. Increased Utilization. More beneficiaries are using their coverage, especially for outpatient services and specialist care. As claims volume rises, insurers must raise premiums to keep pace.
#3. Inflation and Drug Prices. Broader economic inflation and the rising cost of prescription drugs also contribute indirectly, putting pressure on insurers to adjust premiums more aggressively than in the past.
#4. Carrier Strategy. Some Medigap companies set lower initial premiums to attract new members, then apply steeper increases later to rebalance risk. This means rate history and carrier choice matter as much as the starting price.
Why Shopping Your Plan Matters in 2026
One of the biggest sources of confusion for Medicare beneficiaries is the Annual Election Period (AEP), which runs from October 15 through December 7 each year. Heavy advertising during this time leads many people to believe they can only review or change their coverage in the fall.
That’s true for Medicare Advantage and Part D drug plans, but not for Medigap.
Medicare Supplement plans, like Plan G and Plan N, are different. You can shop and change your Medigap coverage at any time of the year, as long as you can pass medical underwriting (unless you qualify for Guaranteed Issue rights).
This means if you find a lower premium in March, June, or September, you don’t have to wait until October to make the switch.
Waiting until AEP can actually cost you money. If premiums are rising – and 2025 proved they can rise sharply – delaying a switch by six or eight months means paying hundreds of dollars more than necessary.
In 2026, after last year’s record-breaking increases, cost savings are top of mind, so shopping sooner rather than later is one of the best ways to protect your budget.
A Smart Alternative: Plan N
With 2025’s record-breaking increases still fresh in mind, many Medicare beneficiaries are rethinking their options in 2026. While Plan G remains the most comprehensive choice, one smart way to lower premiums without giving up essential protection is by considering Plan N.
For current Plan G policyholders, switching to Plan N can mean substantial monthly savings while still maintaining strong benefits.
The trade-offs are modest: Plan N requires small copays for office and ER visits and doesn’t cover Part B excess charges. For many retirees, these costs are minimal compared to the premium savings.
Even if you already have Plan N, it’s still worth shopping rates across carriers. Since benefits are standardized, the only differences come down to price, rate history, and company reputation.
Sample Plan N Rates (Age 65, Nonsmoker, 2026 Estimates)
| Carrier | Monthly Premium (Sample) | Notes |
|---|---|---|
| Cigna | $135 – $150 | Consistently among the lowest-priced options in many states. |
| Aetna | $145 – $160 | Solid mid-range pricing with stable rate history. |
| Mutual of Omaha | $155 – $170 | Trusted brand, usually not the cheapest but widely chosen. |
| BCBS Illinois | $150 – $165 | Strong option in Illinois, competitive with national carriers. |
| BCBS Texas | $148 – $162 | Competitive in Texas with strong local recognition. |
| BCBS Florida | $170 – $185 | Higher overall premiums due to Florida’s market, but still a key player. |
Key Takeaway
In most states, Cigna tends to deliver the lowest Plan N premiums, making it a top choice for cost-conscious shoppers. Aetna and Mutual of Omaha provide stable, trusted alternatives, while regional Blue Cross Blue Shield carriers remain strong options depending on your state.
Plan N can be a smart way to save in 2026 – whether you’re switching from Plan G or simply shopping rates among carriers.
What Plan N Covers and How It Works
Medicare Supplement Plan N is often called the “cost-conscious alternative” to Plan G because it delivers nearly identical coverage at a lower monthly premium. The differences come down to a few small tradeoffs, which many beneficiaries find worth the savings.
#1. Hospital Coverage (Part A). Plan N covers all Medicare Part A hospital coinsurance and hospital costs, including an additional 365 days after Medicare benefits are used up. For inpatient care, it provides the same protection as Plan G.
#2. Outpatient Care (Part B). Plan N pays the 20% coinsurance for doctor visits, outpatient care, and specialist appointments, but it does include small copays: up to $20 for certain office visits and up to $50 for emergency room visits (waived if admitted).
#3. Excess Charges. Unlike Plan G, Plan N does not cover Part B excess charges. These occur if a provider bills above Medicare’s standard rate. In practice, most doctors accept Medicare assignment, so excess charges are relatively uncommon – but it’s still something to keep in mind.
#4. Premium Savings. Plan N’s main attraction is its lower monthly premium. On average, Plan N costs about $20–$40 less per month than Plan G, which can add up to hundreds in yearly savings. For retirees on fixed incomes, this balance of solid coverage and reduced premiums makes Plan N an appealing option.
In short, Plan N offers nearly all the protection of Plan G, with modest cost-sharing in exchange for lower monthly premiums. For many, it’s the best way to keep Medigap coverage affordable without losing essential benefits.
Plan N vs. Plan G: Main Differences
When comparing Medicare Supplement plans, the two most popular choices are Plan G and Plan N.
Both provide strong protection against the gaps in Original Medicare, but there are a few key differences to keep in mind as you decide which is right for you.
Plan G: Maximum Coverage
Plan G pays for nearly all out-of-pocket costs that Original Medicare leaves behind, with the exception of the Part B deductible ($257 in 2025). After you meet that deductible, all Medicare-approved services are covered in full.
Plan G also covers Part B excess charges, which can occur if a provider bills more than the Medicare-approved amount. This makes Plan G the most comprehensive choice for new enrollees.
Plan N: Lower Premiums, Small Trade-Offs
Plan N offers the same hospital and major medical coverage as Plan G but comes with lower monthly premiums. The trade-offs are small copays (up to $20 for office visits, up to $50 for ER visits if not admitted) and no coverage for Part B excess charges.
While these gaps are minor for most beneficiaries, the savings can be significant – often $20 to $40 per month compared to Plan G.
Real-World Differences
The differences between Plan G and Plan N aren’t always clear on paper, but they become obvious in daily life:
- Doctor visits: A beneficiary on Plan G pays nothing after meeting the Part B deductible, while someone on Plan N may pay a $20 copay for the same visit.
- Emergency care: With Plan N, a trip to the ER could mean a $50 copay (unless admitted). With Plan G, the ER visit is fully covered after the deductible.
- Excess charges: Plan G pays them, Plan N does not. For most seniors, this rarely matters since many doctors accept Medicare assignment, but if you see a specialist who bills above Medicare’s rate, Plan N members could face extra costs.
- Monthly budget: Plan N often costs $20–$40 less per month than Plan G, which adds up to hundreds of dollars saved each year – more than enough to offset occasional copays for healthy beneficiaries.
Bottom line: Both Plan G and Plan N provide the stability, freedom, and predictability that Medicare Advantage can’t match. The decision comes down to how much you’re willing to pay each month for the extra protection Plan G provides.
Why We Recommend Medigap
In 2026, it may be tempting to look at Medicare Advantage plans because of their lower or even $0 premiums.
But while the upfront cost may be appealing, Medicare Supplement (Medigap) plans like Plan G and Plan N provide a level of stability and predictability that Advantage simply can’t match.
With a Medigap plan, you don’t face the same risks that come with Advantage:
- No cancellations. Once you’re enrolled and paying your premium, your coverage cannot be dropped.
- No prior authorizations. You can get the care you need without waiting for insurer approval.
- No network changes. You aren’t tied to shrinking networks that can drop providers at any time.
- No referrals. Specialists are accessible without going through a gatekeeper.
- Nationwide predictability. Any provider in the U.S. who accepts Medicare will accept your Medigap plan.
Yes, the premiums are higher than most Advantage plans. But what you gain in return is peace of mind: no surprise bills, no sudden provider changes, and the ability to get care anywhere you go.
Medicare Advantage vs. Medigap: Market Stability
The difference becomes even clearer when you look at how unstable the Advantage market has become.
In 2024, more than 1 million people lost their Advantage plans as insurers pulled out of unprofitable markets.
Looking ahead, 2026 is bringing more disruption: 158,000 seniors in Minnesota will lose coverage as UCare exits, and New Hampshire will shrink from 26 Advantage carriers down to just 2.
When an Advantage plan disappears, it’s not just about finding a new plan. Losing coverage can disrupt every part of your healthcare: you may be forced to switch doctors, pay more for prescriptions, or face higher out-of-pocket bills.
Worse yet, you only have a short window during the Annual Election Period to pick something new, which can make the process rushed and stressful.
By contrast, Medigap plans offer long-term stability. Benefits are standardized and guaranteed for life as long as you pay your premiums. That means no networks, no prior authorizations, no provider losses, and no annual surprises.
Even though premiums have increased – with 2025 seeing hikes of 8% to 50% in some markets – switching to a different Medigap carrier for a better rate is simple. Because the benefits are standardized, Plan N from one company is identical to Plan N from another.
The only differences are the price, available discounts, and each carrier’s track record on rate increases.
In a nutshell: Medicare Advantage plans can change, shrink, or disappear altogether, leaving beneficiaries scrambling. Medigap plans, especially cost-conscious options like Plan N, provide unmatched stability and peace of mind.
Turbulence in the Medicare Advantage Market (2024–2026)
The past few years have shown just how unstable the Medicare Advantage market can be. In 2024 alone, more than 1 million people lost their Medicare Advantage plans as carriers pulled out of unprofitable markets, cut plan offerings, or raised costs dramatically.
Looking ahead, 2026 is shaping up to bring even more disruption. UCare is terminating its Medicare Advantage business in Minnesota, forcing 158,000 seniors to find new coverage.
The market is shrinking drastically in New Hampshire, with the number of participating carriers expected to fall from 26 to just 2. These examples illustrate a trend that’s been building nationwide: Advantage carriers often reduce choices or exit altogether when margins tighten.
And it’s not just Minnesota or New Hampshire – this instability is showing up across the country:
- Texas: Cigna is scaling back its Medicare Advantage offerings in 2025 across several states, including Texas, where certain service areas and plan types will no longer be available. Aetna is also pulling back, projecting up to a 10% membership drop as it exits counties in Texas and other states.
- Florida: Cigna is discontinuing all of its PPO Medicare Advantage plans in Florida in 2025, forcing many seniors to search for new coverage.
- Humana: Humana is exiting 13 Medicare Advantage markets nationwide, impacting roughly 560,000 enrollees.
These exits reflect broader financial pressures, as insurers cut unprofitable plans to adjust to rising medical costs and lagging federal reimbursements.
Final Thoughts
There’s no denying it – premiums for Medicare Supplement plans are higher than ever after 2025’s record-breaking increases. But even in this new reality, the stability, freedom, and predictability of Medigap coverage remain unmatched.
Among the available options, Plan N stands out in 2026 as one of the smartest ways to balance strong protection with affordability.
If you’re concerned about costs, the best step you can take is to compare rates now. By shopping across multiple carriers, such as Cigna, Aetna, Mutual of Omaha, and Blue Cross Blue Shield, you may find a significantly lower premium for the exact same coverage.
Plan N deserves serious consideration for anyone looking to lower monthly costs without giving up the peace of mind that comes with Medicare Supplement insurance. The combination of predictable benefits and lower premiums makes it an excellent alternative in 2026.
You have control. Don’t let the noise of Medicare Advantage marketing confuse you or cause unnecessary delays. Take action today to protect both your coverage and your budget.
FAQs
- What makes Plan N different from Plan G?
- How much does Plan N cost in 2026?
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