Published: October 6, 2026
Medigap costs and premiums are projected to rise in 2027, driven by an estimated 9% increase in overall healthcare expenses alongside higher Medicare Part B and Part D deductibles. Individual monthly rates vary based on carrier pricing models—such as attained-age or community-rated structures—as well as age, location, and gender. Comparing plans like Plan G or Plan N helps beneficiaries maintain predictable healthcare spending.
- Medigap premiums and Medicare Part B and D deductibles are expected to increase in 2027, largely due to a projected 9% rise in healthcare service costs.
- Your rate depends on your plan letter, age, location, gender, and whether your carrier uses attained-age, issue-age, or community rating.
- Plan G offers maximum coverage predictability, while Plan N provides a lower-premium option with modest copays.
- Single beneficiaries earning over $113,000 ($226,000 for couples) will face increased income-related surcharges on Part B and Part D premiums.
If you’re worried your Medigap premiums will be going up in 2027, you’re not alone. All healthcare costs have risen in recent years, and Medicare coverage is not immune to economic changes. Each year, your insurance carrier rates you based not only on the plan you choose, but on factors like your age and where you live. The rating you receive is what carriers use to determine your annual premiums.
Read on to find out what we know now about Medicare Supplement plan costs for 2027 and learn more about how your individual rates are established.
Why does my Medigap premium keep going up?
Because Medigap plans are provided by private insurance carriers, they can adjust your premiums each year. Much like your car and housing insurance, your annual rates are adjusted each year based on inflation, profit margins, and the cost of covering healthcare. A handful of factors go into the cost of your monthly Medigap premiums. These include:
- Plan letter – Each Medigap plan comes with a plan letter that corresponds to its coverage. More comprehensive plans have higher premiums.
- Inflation – Healthcare costs are expected to increase by 9% in 2027. Insurance carriers often increase premiums to make up for higher spending on healthcare services.
- Age – Generally, the older you get, the higher your premium is going to be. Insurers assume that as people age, their healthcare expenditures rise.
- Location – Insurance carriers take into account the area in which you live for premiums as well. This is largely because different states (and regions within them) have higher or lower healthcare costs – think about the cost of seeing a doctor in New York City versus Des Moines, Iowa.
- Gender – Women tend to have lower premiums than men because their healthcare costs are, on average, lower as they age.
- Your insurance carrier – Each carrier has different ways they underwrite and rate plans. How carriers tabulate profit margins and administrative costs can also impact what they charge for premiums.
Community-rated, issue-age-rated, and attained-age-rated in Medicare: What’s the difference?
There are three main rating types Medigap carriers can use to set your premiums. Depending on where you live, one type may be more prevalent than another in your state. The three rate types are attained-age, issue-age, and community-rated. Along with factors like inflation and gender, carriers also base your rating on one of these three determinants:
- Attained-age-rated — The premium is based on your current age and will likely go up a small amount each year as you get older.
- Issue-age-rated —The premium is based on the age you were when you purchased the plan. It may increase each year because of inflation, but not because you’re getting older.
- Community-rated — The same premium is charged to everyone on the same plan living in one location, regardless of age. Community rating is the least-common of the three types of ratings.
Note: Most Medigap plans increase premiums once a year, but some plans, like Plan G, may raise premiums twice. When you’re choosing a plan, look around and compare carriers that use different types of ratings if they are available in your area.
What’s driving 2027 Medicare costs higher?
When the Centers for Medicare and Medicaid Services (CMS) announces Medicare rates each year, you can expect them to rise. Here’s a comparison between 2026 and known (and estimated) costs for 2027:
- Medicare Part B premium — $202.90 in 2026, projected to be $221.00 in 2027 (this will be confirmed by CMS later this year).
- Medicare Part B deductible — $283 in 2026, projected to be $310.00 in 2027 (this will be confirmed by CMS later this year).
- Medicare Part D (drug) maximum deductible — $615 in 2026, already confirmed to be $700 in 2027.
- Medicare Part D out-of-pocket cap — $2,100 in 2026, already confirmed to be $2,400 in 2027.
On top of this, it’s anticipated that Medicare Advantage and Medigap monthly premiums will also rise. Medicare Advantage plan rates will be announced sometime before Open Enrollment. You get quoted Medigap rates when you compare plans for enrollment. But companies like UnitedHealthcare and Aetna have already announced that customers should expect rate hikes in 2027.
Another consideration will be the increase to Income-Related Monthly Adjustment Amount (IRMAA) for Medicare beneficiaries. IRMAA is a surcharge added to your Medicare Part D and Part B premiums for high-income earners. Whether you pay IRMAA is based on your tax returns from two years ago. For 2027, the individual income threshold is $113,000; for couples it’s $226, 000. If your modified adjusted gross income is higher than this threshold, you’ll be assessed anywhere from $83.70 and $502.60 in 2027 (up from $81.20 and $487 in 2026) to your Part B premium. The Part D IRMAA surcharges haven’t yet been released by CMS but are expected to range from $15.40 to $96.50. The higher your income, the greater the IRMAA surcharge.
How Medigap Plan G and Plan N help you budget for these changes
Whether CMS and individual carriers increase their costs each year is out of your hands. But you do have some control over what you pay in premiums and how much you spend on healthcare services. Medicare Plan G Supplement, the most popular of all Medigap plans, can keep your spending more predictable. Plan G does have slightly higher premiums but covers nearly all of your healthcare spending over the course of the year (after you’ve paid your Part B deductible). If you like the idea of spending less on healthcare but want lower monthly costs, talk to a licensed United Medicare Advisors agent who can help you explore other options, like the Medicare Supplement Plan N. This is nearly as comprehensive as Plan G but has lower monthly premiums.
Checklist: Is it time to compare your Medigap options?
The time to start thinking about enrolling in a new Medigap plan in 2027 is before you sit down to enroll. The more education you have about Medicare plans, the more likely you’ll be to choose the best one for your budget and healthcare needs. Think about some of these factors when considering plans:
- What can I afford to pay for monthly premiums?
- How do different carriers in my area rate their plans?
- What are my current healthcare needs, and are there major expenses I can anticipate next year?
- If I had an unexpected health emergency, what could I afford to pay for it?
If you are on a fixed budget, or you have one or more chronic conditions, it may be time to consider a Medigap plan. These plans may have higher premiums, but they help keep your overall spending more level. To compare Medicare Supplement plans for 2027 before the official numbers are posted, United Medicare Advisors can offer you free, unbiased guidance on Medigap plans.
