Medigap Shopping Mistakes to Avoid
The biggest Medigap shopping mistake I see isn't picking the wrong company.
It's spending weeks researching things nobody can actually answer — and missing the few things that really do affect what you'll pay and how much flexibility you'll have later.
After helping Medicare clients compare Medigap plans for more than 15 years, here's what I'd focus on, what I'd stop worrying about, and where the common online shopping advice goes off track.
In most states, Medigap plans with the same letter have the same medical benefits, no matter which company sells them.
So the comparison comes down to five things: today's premium for the same plan, how the policy is priced as you age, the company's stability and track record, available discounts, and whether you could switch later without medical underwriting.
Past rate increases are worth a look, but they can't reliably predict your future premium.
- Why Medigap Shopping Is Different
- Mistake #1: Comparing the Wrong Things
- Mistake #2: Treating Past Increases as a Forecast
- Mistake #3: Ignoring the Pricing Method
- Mistake #4: Chasing the Cheapest Unknown Name
- Mistake #5: Skipping Discounts
- Mistake #6: Assuming You Can Switch Later
- My Medigap Shopping Checklist
- FAQ
Why Medigap Shopping Is Different
With most insurance, you're comparing different coverage from different companies.
Medigap works differently. In most states, plans are standardized by letter, so a Plan G from one company pays the same medical bills as a Plan G from another.
(Massachusetts, Minnesota, and Wisconsin standardize their plans differently, but the same principle applies within each state.)
That means you're not really shopping for coverage. You're shopping for price, pricing behavior, and the company behind the policy.
If you're still deciding which plan letter fits you, start with our Medigap plans comparison chart, then come back here to compare companies.
Mistake #1: Comparing the Wrong Things
I regularly talk with people who've compared "benefits" between two Plan G policies for hours.
Those benefits are the same by law. The real question is what each company charges you for identical coverage.
And the difference can be meaningful. Two people buying the same Plan G can pay very different premiums based on ZIP code, age, sex, tobacco use, and the company they choose.
That's why the first step is always a side-by-side premium comparison for the same plan letter in your ZIP code, at your age.
Our 2027 Plan G cost guide gives you a sense of typical ranges before you get personal quotes.
Mistake #2: Treating Past Rate Increases as a Forecast
A lot of online advice tells shoppers to dig into a company's 5- or 10-year rate history, block size, and whether it has closed blocks of business.
Those aren't bad questions. The problem is expecting the answers to predict what you'll pay in your 70s and 80s.
Future premiums depend on how claims in a specific group of policies compare to the premiums coming in.
Some past experience shows up in rate filings with state regulators. But no agent, broker, or shopper can reliably forecast what a company's future increases will be.
For years, our agency could tell clients that annual increases typically landed in the single digits. That pattern broke down around 2025.
We started seeing double-digit increases across many carriers and states, and some filings for certain plans were far higher than anything we'd seen before.
Companies with "good" rate histories weren't immune. That's the main reason I tell clients not to treat a past track record as a promise.
Here's how I'd weigh each of the common research factors:
| Research factor | What it can tell you | Its limits |
|---|---|---|
| Past rate increases | How a company has responded to claims trends before | Recent market-wide increases have made history a weak predictor |
| Size of the block in your state | Larger pools may spread risk more evenly | Size alone doesn't tell you how healthy that pool is |
| Closed blocks of business | Whether a company tends to stop selling older policy forms | Common across large national carriers; doesn't cancel your coverage |
| Rates in your 70s and 80s | Today's rates for older ages show the current age curve | Future increases at those ages aren't known to anyone yet |
The takeaway: these factors can add context, but none of them will tell you which company will be cheapest in 15 years.
If you want to look up a company's past rate filings, your state's Department of Insurance is the place to ask. Just keep expectations realistic about what that history can tell you.
What about closed blocks?
When a company "closes a block," it stops selling a particular policy form to new customers. Existing policyholders keep their coverage.
A closed block no longer receives new policyholders, which can affect the group's age and claims experience over time.
However, closing a block doesn't automatically mean premiums will increase faster.
It's something to be aware of, but it's largely outside a shopper's control. We cover how it works in detail in why Medigap companies close blocks of business.
Mistake #3: Ignoring the Pricing Method
Medigap companies use one of three methods to set premiums, and it affects how your price changes as you age:
- Attained-age: Premium is based on your current age and rises as you get older.
- Issue-age: Premium is based on your age when you bought the policy and doesn't rise because of aging.
- Community-rated: Premium generally isn't based on age, though discounts and other permitted factors can still create differences.
All three can still see increases from inflation and claims costs. An issue-age policy isn't a price freeze.
And in many states, the method is set by state rules, so you may not get to choose.
Still, it's worth knowing which method each quote uses, because a low attained-age premium at 65 can look very different by 75. Our attained-age vs. issue-age guide walks through the math.
Mistake #4: Chasing the Cheapest Unknown Name
Financial strength and commitment to the Medigap market are, in my view, among the most important things to check.
In recent years, we've watched several newer or lower-priced entrants pull back from new Medigap sales.
For example, Allstate's Medicare Supplement business (sold through National General) announced it would withdraw from the Medigap market and stop accepting new applications, with timing that varied by state.
Chubb, which entered the market with ACE Medicare Supplement, has been moving new sales from ACE to a newer INA Medicare Supplement product state by state.
Existing policyholders in those situations generally keep their coverage. But when a pool stops adding new members, that can contribute to larger increases over time. Outcomes vary by company and block.
After seeing newer market entrants stop accepting applications, our agency began using at least five years of Medigap market experience as one of our screening considerations before recommending a company.
This is our internal guideline, not an industry rule, and it isn't a guarantee of future rate stability.
But if a company you've never heard of is dramatically cheaper than every established carrier, I'd want to understand why before enrolling.
To check financial strength, look for ratings from AM Best or other independent rating agencies, and ask how long the company has sold Medigap coverage. Our best Medicare Supplement companies review covers the carriers we compare most often.
Say you're 65 and comparing two Plan G quotes. Company A has sold Medigap for decades and quotes $168 a month. Company B entered the market two years ago and quotes $129.
The $39 difference is real money. But I'd want to know Company B's financial rating, whether its block is growing, and whether you'd have protections to switch later if it raises rates sharply.
If switching later could require medical underwriting, I'd look more closely at the established company's track record before deciding whether the lower premium is worth the uncertainty.
These figures are illustrative, not actual quotes.
Mistake #5: Skipping Discounts
Household discounts don't come up in most online shopping checklists, and they can make a real difference.
Many companies offer a discount if you live with a spouse or another qualifying adult, or if you both apply. Some offer discounts for paying by automatic bank draft or annually.
The details vary a lot. Discount amounts, who qualifies, and whether they're offered at all differ by company and by state.
So ask every company you're comparing, and compare quotes after discounts, not before.
Mistake #6: Assuming You Can Switch Later
This is the one I'd put at the top of the list for anyone choosing a plan based on price alone.
You can generally apply to change Medigap policies at any time of year. But outside of certain protected situations, the new company can use medical underwriting — and it can decline your application or charge more based on your health.
| Your situation | Can the insurer use medical underwriting? |
|---|---|
| Your 6-month Medigap Open Enrollment Period | No — companies generally can't deny you or charge more because of your health (other normal pricing factors still apply) |
| You have a federal guaranteed-issue right (for example, losing certain coverage) | No, for the plans covered by that right |
| Your state has a birthday rule, anniversary rule, or annual switching window | Often no, within the state's specific limits |
| Any other time | Usually yes, in most states |
The takeaway: if your health changes after you enroll, your ability to switch without medical underwriting depends on whether you qualify for federal or state-specific protections.
That's why I'd check your state's switching protections before you enroll, not after a rate increase arrives. Our guide on whether you can get a Medigap plan anytime explains how this works.
My Medigap Shopping Checklist
Before enrolling, I'd want clear answers to these questions:
- Am I comparing the same plan letter, in my ZIP code, at my age?
- Is each quote attained-age, issue-age, or community-rated?
- How long has each company sold Medigap coverage, and what's its financial strength rating?
- What household or payment discounts do I qualify for?
- Am I in my Open Enrollment Period, or do I have a guaranteed-issue right?
- What are my state's rules for switching companies or plans later?
- Does the premium fit my budget even with future increases?
If you can answer those seven, you've covered what actually matters. For a deeper walkthrough of where to find this information, see how to research Medigap insurance.
Frequently Asked Questions
Can a Medigap company cancel my policy?
Medigap policies are guaranteed renewable, so the company generally can't cancel you because of your health.
According to Medicare.gov, a policy can typically end only if you stop paying premiums, you weren't truthful on your application, or the insurance company goes bankrupt or insolvent.
Do Medigap rates go up every year?
Most policies see periodic increases from rising healthcare costs and claims, and attained-age policies also rise with age.
How much and how often varies by company, state, and plan. See our guide to Medigap rate increases for more.
Where can I get free, unbiased Medigap help?
Your State Health Insurance Assistance Program (SHIP) offers free counseling, and your state Department of Insurance can answer questions about rate filings and switching rules.
The Bottom Line
If you've already decided Medigap fits your needs, keep the process simple.
Compare the same plan letter across established companies, check how each is priced, ask about discounts, and check your switching protections before you sign.
If you're still deciding between Medigap and Medicare Advantage, that's a bigger decision. For clients who can afford the premium and want to see any Medicare provider without network rules, I usually lean toward Medigap. Others value Medicare Advantage's lower premiums and extra benefits.
Our Medicare Advantage vs. Medicare Supplement guide lays out both sides.
If you'd like help comparing companies in your state, call us at 888-414-4547.
