The whole point of a Medigap plan was predictability. You pay a known monthly premium, and in return you don't get surprised by hospital bills, deductibles, or unexpected cost-sharing. For millions of seniors on Medicare supplement plans, that bargain made sense — even at a higher monthly cost than Medicare Advantage. Then the renewal notice arrived. In 2026, Medigap Plan G premiums — the most widely purchased supplement type — are rising between 12% and 26% depending on the insurer and the state. Some policyholders were hit with increases of 45% or more, effective immediately. Brokers who have worked in Medicare for decades say double-digit annual increases are now the norm, not the exception. The coverage didn't change. The bill did.
📋Quick Summary
- Medigap Plan G premiums are rising 12%–26% in 2026, with some policyholders seeing 45%+ increases.
- About 12 million seniors — 43% of those in Original Medicare — carry a Medigap policy.
- Premium increases are driven by rising healthcare utilization, aging enrollees, and the large-scale return of Medicare Advantage dropouts.
- Unlike Medicare Advantage, Medigap has no annual enrollment window — you can shop for a new plan any time, but medical underwriting may apply outside your guaranteed-issue window.
- Switching insurers while keeping the same plan type can produce meaningful savings — often hundreds of dollars per year.
- Certain states have stronger consumer protections that allow switching without underwriting.
The Promise That Just Got More Expensive
Medigap — also called Medicare supplement insurance — was always a trade. You pay more month to month than you would for a zero-premium Medicare Advantage plan, and in exchange you get coverage with no networks, no referrals, no prior authorization, and predictable cost-sharing. For people managing chronic conditions, or those who simply valued the freedom to see any Medicare-accepting provider in the country without asking permission first, that trade made financial and practical sense.
The predictability piece, however, is under serious pressure in 2026. Filings submitted by major insurers — including Aetna, Blue Cross Blue Shield, Cigna, Humana, Mutual of Omaha, and UnitedHealthcare — show Plan G rate increases ranging from just over 12% to more than 26% in the first quarter of 2026, according to analysis from Nebraska-based actuarial firm Telos Actuarial. Those are increases on top of the increases many of these same policyholders absorbed in 2025. Five years ago, a rate increase above 10% was considered unusual. Today, industry observers say it is unusual to see one below 10%.
The most jarring cases involve insurers who issued increases effective immediately — not on the policyholder's anniversary date, as is standard practice, but across the entire book of business at once. One broker with nearly five decades of experience described receiving notice that more than 80 of his clients enrolled in the same Medigap plan from insurer Chubb were hit with a 45% increase with no advance warning and no phase-in period. The industry standard of anniversary-date increases was abandoned without explanation.
For more on how supplement plan premiums are calculated and when insurers can raise them, see our complete Medigap guide.
Unlike Medicare Advantage, Medigap has no annual enrollment window. You do not have to wait until fall to shop for a lower premium. Medicare supplement plans can be compared and switched at any time of year. The important caveat: outside of your initial six-month guaranteed-issue window when you first enrolled in Part B, most states allow insurers to use medical underwriting — meaning they can charge more or decline coverage based on your health history. However, several states including New York, Connecticut, and Massachusetts require guaranteed issue year-round. If you are in good health and your current premium has become unaffordable, comparing quotes from competing insurers is one of the most effective moves you can make right now. A licensed Medicare broker can run this comparison for you at no cost.
Why Premiums Are Rising So Fast
Medigap premium increases don't happen arbitrarily. Insurers file rate changes with state insurance commissioners and must justify them actuarially — which means the increases reflect real cost pressures building in the system. Understanding what's driving those pressures helps explain why the problem is unlikely to reverse on its own.
The most significant driver is utilization. During the COVID years, millions of Medicare beneficiaries deferred elective procedures, specialist visits, and preventive care. That backlog has been working its way through the healthcare system ever since, and the volume of claims being filed against Medigap policies has risen sharply as a result. More claims mean higher costs for insurers, and insurers pass those costs forward through premium increases.
The age of the Medigap-insured population is also a factor. People who have held the same supplement plan for many years are, by definition, older than when they enrolled — and older enrollees generate more claims. As the average age of policyholders in a given insurer's book rises, so does the expected cost of covering them.
There is also a structural dynamic created by the recent wave of Medicare Advantage exits. When 2.9 million seniors lost their Medicare Advantage plans in 2026 and some of them turned to Medigap as an alternative, they brought with them a health profile that was, on average, more complex than the existing Medigap pool. People who had stayed in Medicare Advantage through serious illness years were, in some cases, now entering the supplement market — and their claims experience is being reflected in premiums across the pool.
Finally, the Medigap market is experiencing a version of adverse selection pressure that has been building for years. Healthier seniors have increasingly been drawn toward zero-premium Medicare Advantage plans, leaving the Medigap pool weighted toward those with heavier healthcare needs. That dynamic pushes average claims higher, which pushes premiums higher, which drives more healthy enrollees toward Advantage — a cycle that industry analysts have flagged as a long-term structural concern. For a side-by-side look, see our Medicare Advantage vs. Medigap comparison.
✅What This Means For You
If you're turning 65 this year: You're entering the Medigap market at a moment of significant premium volatility. Your guaranteed-issue window — the six months after you enroll in Part B — is the single best time to lock in coverage without medical underwriting. Choose carefully, because switching later may require you to qualify medically. Compare multiple insurers rather than accepting the first quote, and consider that the lowest-premium plan today may not stay that way.
If you're already on a Medigap plan: If you received a large renewal increase, you are not obligated to accept it. You can shop competing insurers for the same plan type — Plan G is Plan G regardless of which insurer sells it — and if you are in good health, you may be able to qualify for a lower rate elsewhere. Contact a licensed Medicare broker to run a comparison. This is a free service and can result in savings of hundreds of dollars per year.
If IRMAA affects you: Higher-income beneficiaries already paying elevated Part B premiums are absorbing multiple cost increases simultaneously in 2026 — IRMAA surcharges, Part B premium jumps, and now Medigap increases. Reviewing the total cost picture holistically, rather than each piece in isolation, is worthwhile. For some high-income seniors, the math on Medicare Advantage with a strong out-of-pocket cap may look different now than it did two years ago.
If you're on Medicare Advantage considering a switch to Medigap: The appeal of supplement coverage is real — no networks, no prior authorization, no referrals. But enter the Medigap market with current premium data, not the assumptions of five years ago. Premiums are meaningfully higher than they were, and the trend is upward. Budget for ongoing increases, not just the first-year rate.
See our guides on comparing Medigap plans by state and guaranteed-issue rights.
Explore Further
Your Options If Your Premium Has Become Unaffordable
A Medigap premium increase does not have to be the end of the conversation. There are real moves available — but each one comes with trade-offs worth understanding before acting.
The most direct option is shopping for a new insurer while keeping the same plan type. Because Medigap plans are standardized by federal law — every Plan G from every insurer must cover the same benefits — the only meaningful difference between insurers is price, financial stability, and claims service. If you are in reasonably good health and live outside a guaranteed-issue state, you will likely need to answer health questions and may face different rates based on your history. But for healthy seniors, the difference between the highest- and lowest-priced Plan G in the same zip code can easily be $100 or more per month.
Downgrading to a less comprehensive plan is another option, though one that requires careful thought. Moving from Plan G to Plan N, for example, typically carries a lower premium — but Plan N requires copays for some doctor visits and does not cover Part B excess charges. For someone who rarely sees specialists and uses in-network providers, Plan N may represent a reasonable trade. For someone managing a chronic condition with frequent specialist visits, the savings may be offset by higher out-of-pocket costs. Our Plan G vs. Plan N breakdown walks through the differences in detail.
Switching to Medicare Advantage is the most significant structural change available. MA plans in many areas still offer $0 or very low premiums, and their mandatory out-of-pocket maximums provide a ceiling on annual exposure that Original Medicare lacks. The trade-offs — prior authorization, network restrictions, potential for benefit cuts — are real and documented. But for someone whose Medigap premium has become genuinely unaffordable, the comparison deserves a fresh look with current plan data rather than assumptions from prior years.
📊2026 Medigap Premium Increases at a Glance
Rate increases vary significantly by state, age, and rating method. Contact a licensed Medicare broker for current rates in your area.
The Longer-Term Picture — and What to Watch For
The forces driving Medigap premium increases in 2026 are not short-term anomalies. They reflect structural changes in the Medicare market that have been building for years and are unlikely to reverse quickly.
The most important thing any Medigap policyholder can do right now is stop treating their premium as a fixed cost. For decades, Medigap premiums were relatively stable, and many enrollees simply renewed each year without comparison shopping. That era appears to be over. Premiums are now variable enough that an annual review — comparing your current insurer's rate against competitors offering identical coverage — has become financially worthwhile in a way it wasn't before.
If you work with a licensed Medicare broker, request an annual comparison quote at every renewal. If you don't work with one, SHIP counselors in every state can help you understand your options at no cost. They won't sell you a policy, but they can help you understand whether the rate you're paying is competitive and what alternatives look like. Our state-by-state Medicare resource directory includes SHIP contact information.
For people who are approaching Medicare eligibility and deciding between Medigap and Medicare Advantage for the first time, the current premium environment is a genuine input into that decision — not a reason to avoid Medigap, but a reason to price it accurately and build in an assumption that costs will continue to rise. The protection Medigap provides is real. So is the price tag.
