Medigap Plan Costs in 2027: The Three Pricing Methods and the States That Set Them

Medicare.gov and state insurance regulators describe the same three approaches. The method is written into each policy’s rate filing with the state, and it usually appears in the insurer’s rate pages as well.

In most of the country, insurers choose. In thirteen states the law narrows the choice, according to KFF’s October 2026 review of state Medigap rules.

Source: KFF, Key Facts About Medigap Enrollment and Premiums, October 2026. Massachusetts, Minnesota and Wisconsin also use their own plan designs instead of the standard letters.

Idaho’s place on the community-rating list surprises people who expect the rule only in the Northeast. It is a reminder to check the state rule before comparing quotes, since a cross-state average can mislead.

To see why the method matters, picture two policies that both start at the same premium at 65. The figures below are an illustrative index, with the starting premium set at 100, not real rates. They separate the age effect from inflation by assuming each policy also receives the same general increase every year.

Our illustration. Actual age factors differ by insurer and state; issue-age and community policies often start higher than attained-age ones, which can offset part of this gap.

The takeaway is a comparison habit, not a winner: ask each insurer for its age-factor table and its rate history, then compare totals over the years you expect to keep the policy.

KFF’s review also found no clear link between a state’s community-rating or guaranteed-issue rules and its average premium level. Strong consumer protections do not automatically mean expensive coverage, and weak ones do not guarantee cheap coverage.

The premium is the fixed cost. The variable cost is what each letter leaves unpaid. For 2027, CMS has set the cost-sharing ceilings that apply to several plans, and the Part B deductible is projected at $292.

Plan K, L and high-deductible figures: CMS 2027 announcements. High-deductible Plan F is open only to people eligible for Medicare before 2020.

Our breakdown of what Plan G costs for a full year shows how a premium and these gaps combine into one budget.

A policy that becomes expensive is not a trap in every state, but in most it is harder to leave than to join. Outside your first six-month open enrollment, insurers in many states can ask health questions before accepting a new application.