Can Moving Rural Lower Your Medicare Supplement Premiums?

Can Moving Rural Lower Your Medicare Supplement Premiums?

Moving to a rural area can save you money due to its lower cost of living. But it’s not just about saving on housing expenses and property taxes compared to the big city. It can also save you money on your Medicare Supplement (Medigap) premiums.

Medigap premiums tend to be cheaper in rural areas than in cities, and you may be able to access guaranteed issue rights (switching to a new plan without medical underwriting) if your existing Medicare Advantage policy isn’t available in your new location.

Here’s why moving to a rural area can be a cost-effective option for retirees on a fixed income, and how to find the best Medicare Supplement policy in your ZIP code.

Why Moving Rural Can Lower Medicare Supplement Premiums

For many retirees, moving to a rural area has an appeal all its own. Moving from the city to a country road can offer a more relaxed lifestyle and lower cost of living. Not only do rural retirees benefit from lower housing costs and property taxes, they also tend to pay lower Medigap premiums than their urban and suburban counterparts.

Why are Medicare Supplement rates lower in rural areas? Medigap premiums are set by ZIP code or county, and many carriers offer lower rates in rural areas based on cost of living variations, healthcare utilization factors, and local market competition.

For example, a 65-year-old male non-smoker living in the Chicago Loop (60601) can expect to pay at least $139 per month for Plan G. The same beneficiary could pay as little as $123 per month in Abingdon, IL (61410). That’s a savings of $192 per year, or almost $1,000 in savings over 5 years for the exact same plan.

Medigap plans are federally standardized based on plan type, which means that Plan G in rural Texas offers the same benefits as Plan G in downtown Dallas. Premiums, however, are set by insurers, not the federal government, and can vary based on your age, gender, tobacco use, and geographic area.

While rural policies aren’t cheaper in every case – it’s just as important to compare rates between carriers – they often represent a better bargain compared to urban areas.

Understanding Medicare Supplement Plans and Their Benefits for Rural Residents

Medicare Supplement plans (Medigap) work alongside Original Medicare (Parts A and B) to cover out-of-pocket expenses that Medicare doesn’t cover. In contrast to Medicare Advantage plans, which restrict you to a provider network, Medigap plans are accepted anywhere that Medicare is accepted – making them ideal for rural beneficiaries.

Depending on the plan letter, your Medigap policy may cover:

• Part A deductible
• Part B coinsurance and copayments
• Skill nursing facility care coinsurance
• Foreign travel emergency coverage (on some plans)
• 100% of Part B excess charges (Plan G)

Healthy buyers can get lower rates by enrolling in Plan N (which includes a copay for doctor and ER visits) or the high-deductible Plan G, which only covers you once you exceed $2,950 in out-of-pocket costs.

Medigap doesn’t cover prescription drugs (that requires Part D) and you can’t use it alongside a Medicare Advantage plan.

Since rural residents may have fewer healthcare providers to choose from than those living in urban areas, Medigap often serves as a more flexible option than Medicare Advantage, and can be used at any Medicare-approved provider nationwide.

Comparing Medicare Advantage and Medicare Supplement Availability in Rural Areas

According to research by KFF, 99.4% of all Medicare beneficiaries have access to at least one Medicare Advantage plan in their area. But plan choices can be limited in rural areas vs. urban areas. On average, beneficiaries in rural counties have access to half as many MA plans as those who live in urban areas, and even less with Part D coverage:

Some areas have even fewer plans: South Dakota has an average of four MA plans with Part D, Wyoming has 3, and Vermont one. Alaska doesn’t have any MA plans at all. In 171 counties nationally, only one insurer offers Medicare Advantage. In other states, insurers are leaving: in 2027, New Hampshire lost 13 plans and Minnesota lost 11.

While it’s important to check Medicare Advantage rural availability when moving, this is less of an issue with Medigap. Medigap beneficiaries can access any provider that accepts Medicare. This is especially important in rural areas where the closest specialist may be hours away or not part of the Medicare Advantage network.

How Moving Affects Your Medicare Coverage Options and Rights

Whether you’re moving to an entirely new state, or just to a nearby ZIP code, changing your address can change your Medicare coverage options. Medicare Advantage policies in particular are ZIP-code or county-specific, so if you move outside of your carrier’s coverage area, you’ll have to choose a new Medicare Advantage policy or switch to Original Medicare (with or without Medigap).

This can be a hidden opportunity for you, since you would normally be subject to medical underwriting when switching from Medicare Advantage to a Medigap policy. But if your existing policy isn’t available in your new location, then you may have guaranteed issue rights to choose a Medigap plan without underwriting.

Guaranteed issue rights are a limited opportunity to buy a Medicare Supplement policy without medical underwriting during certain qualifying scenarios, such as losing your Medicare Advantage policy when you relocate. Insurers can’t deny you coverage or charge you more based on pre-existing conditions during this period.

If you already have a Medigap policy, you can most likely take it with you when you change states – but your premium may change based on your new location. If you move to a rural area, your premium is likely to go down, but you may have to contact your insurer if they don’t adjust it automatically.

Remember, if you cancel your Medigap coverage outside of an enrollment period, you may not have guaranteed issue rights to purchase a new policy without underwriting. Always check with a local Medicare agent first to understand your options.

Choosing Between Plan G and Plan N for Rural Medicare Supplement Coverage

Plan N and Plan G are two of the most popular Medicare Supplement options, but how do they compare in rural areas? Here’s what you need to know about enrolling in Plan G vs. Plan N in 2027 so you can make an informed decision between them.

Plan G is the most comprehensive option, covering almost all out-of-pocket costs under Original Medicare (except the Part B deductible). It covers the Part A deductible, Part B copayments, skilled nursing facility care, and 100% of Part B excess charges.

Plan N offers lower rates for healthy buyers by charging lower premiums but covering fewer out-of-pocket costs. While you can save 20-30% on premiums, you’ll pay a $20 copay per doctor’s visits, and $50 copay for emergency room visits.

Here’s how they compare:

Plan G is the best fit for buyers who want predictable expenses and fewer out-of-pocket costs. Plan N is a good fit for healthy beneficiaries who rarely see a doctor and want to save money on premiums in return for small copays.

For personalized help, visit AAMSI | MedicareSupp.org to contact a local agent who can recommend Medicare Supplement plans based on your client profile.

Tips for Finding the Best Medicare Supplement Premiums by ZIP Code

Each Medigap plan letter provides the exact same coverage no matter where you live, so comparison shopping is mostly about price, carrier stability, and customer service. Here are six steps you can take to find the best Medigap premium in your area:

1. Narrow down your search ZIP code or county. Most carriers rate their plans by ZIP code, but some may rate by county. To explore your rural Medicare coverage options, compare premiums in the ZIP codes or counties where you plan to live.
2. Request quotes from multiple insurance carriers. Even within the same ZIP code, premiums can vary by 40% or more across carriers. Contact a Medicare agent near you or use AAMSI’s comparison tools to research carriers.
3. Compare rates for the same plan letter. Don’t compare one carrier’s Plan G to another’s Plan N. Always compare the same letters (i.e., Plan G to Plan G) to get the most accurate pricing comparison for the same level of coverage.
4. Review your carrier’s rate increase history. Annual rate increases are normal, but some carriers have steeper rate increases than others. Review your carrier’s rate increase history for the past 3-5 years to see how stable it is.
5. Consider the pricing method. Medigap policies are rated in one of three ways: attained-age (premiums increase as you get older), issue-age (premiums are based on your age at enrollment), or community-rated (everyone in the same area pays the same rate). Each method has its own pros and cons.
6. Check for Part D availability. Medigap plans don’t include prescription drug coverage, so compare rates for Part D coverage in your new ZIP code.

Remember, changing ZIP codes doesn’t automatically mean you’ll get a rate reduction, but it can. Ask your carrier for a rate adjustment, or compare rates with other carriers in your area. Consider working with a licensed Medicare agent (such as those available through AAMSI | MedicareSupp.org) to compare carriers and get local expertise.

Protecting Your Guaranteed-Issue Rights When Moving

Guaranteed-issue rights allow you to buy or switch Medigap policies in certain qualifying situations without facing medical underwriting. During these periods, insurers can’t deny you coverage, charge more, or impose waiting periods for pre-existing conditions.

Here are a few scenarios that may provide guarantee-issue rights:

• You move to a new location that’s outside of your plan’s service area.
• Your insurer stops offering your plan in your area.
• Your insurer’s contract with Medicare isn’t renewed.

Guaranteed-issue rights are time-sensitive. In most cases, you only have 63 days to apply for a new plan after your coverage ends, or you may face medical underwriting.

If you end your policy voluntarily – for example, to switch from Medigap to Medicare Advantage – you won’t have guaranteed-issue rights. Cancelling Medigap outside of Open Enrollment can make it harder to regain coverage in the future.

Here are some do’s and don’ts to protect your guaranteed-issue rights when moving:

• ✅ Do keep a record of the date your MA plan coverage ends.
• ✅ Do apply for Medigap within the 63-day guaranteed-issue period.
• ✅ Do keep written confirmation of any involuntary changes to your plan (such as your insurer exiting your service area).
• ❌ Don’t let the 63-day window lapse without applying for coverage.
• ❌ Don’t assume your insurer will automatically lower your Medigap rates when you move.
• ❌ Don’t cancel Medigap voluntarily unless you know you can switch back without medical underwriting.

Planning Your Medicare Supplement Enrollment After Moving

Moving to a rural area doesn’t have to complicate your Medigap enrollment. You’ll have the most flexibility if you sign up during your Medigap Open Enrollment Period, which lasts for 6 months after you turn 65 and enroll in Medicare Part B.

Follow this pre-move enrollment checklist to lock in your Medicare Supplement plan’s rural savings for 2027:

1. 60-90 days before the move: Research Medigap premiums by ZIP code or get help from a local Medigap agent through AAMSI | MedicareSupp.org.
2. 30-60 days before the move: If you have a Medicare Advantage or Medigap policy, notify your insurer and find out whether your plan will be available in your new location.
3. At the time of your move: If your Medicare Advantage plan isn’t available in your new location, your Special Enrollment Period (SEP) will begin.
4. Within 63 days of losing coverage: Apply for a new Medicare Advantage plan or enroll in Original Medicare plus Medigap without medical underwriting. Your guaranteed-issue rights when moving only last for 63 days.
5. If you enroll in Medigap: Medigap plans don’t include drug coverage, so you may want to enroll in a standalone Part D prescription drug plan.

If you already have Medigap and you’re moving to a new state, you don’t have to enroll again. Your benefits will stay the same, but your premium may go up or down. If your rates go up, compare them against other carriers to see if it makes sense to switch.

If you need help contact a local Medicare Supplement agent to get personalized advice based on your location, financial circumstances, and health status.

Frequently Asked Questions

What is a Medicare Supplement plan?

A Medicare Supplement plan (also called Medigap) is a private insurance policy that covers some of the “gaps” in Original Medicare (Parts A and B). Depending on the specific policy, it may cover your deductibles, copayments, coinsurance, and other out-of-pocket costs that aren’t covered by Original Medicare.

Can I use a Medigap plan with Medicare Advantage?

No, Medigap plans only work with Original Medicare. Medicare Advantage plans are an alternative to Original Medicare. You can’t have both, and you can’t use a Medigap plan to cover costs associated with Medicare Advantage.

Do Medigap plans include prescription drug coverage?

No, Medigap plans don’t include prescription drug coverage. You’ll need to enroll in a separate Medicare Part D policy for drug coverage.

Is Medigap useful if I live in a rural area?

Yes, Medigap plans are useful if you live in a rural area because you aren’t limited to a specific network of providers. Unlike Medicare Advantage plans that have restrictive networks, you can use Medigap at any doctor or hospital that accepts Medicare.

When can I sign up for Medigap without health questions?

You can sign up for Medigap without any health questions during your Open Enrollment period, a 6-month window that begins when you turn 65 and first enroll in Medicare Part B. You may also be able to enroll without health questions if you move or have another qualifying reason for switching plans (known as guaranteed issue rights). Outside of these special circumstances, you may face medical underwriting when you enroll.

What Medigap plan do people choose most often in 2027?

The most popular Medigap plan in 2027 is Plan G. Most new beneficiaries choose this plan because it covers almost all of the out-of-pocket costs associated with Original Medicare, except for the Part B deductible.

How much does a Medicare Supplement plan cost?

Medicare Supplement plans can cost anywhere from under $100 to more than $400 per month, depending on your age, gender, geographic area, and history of tobacco use. A 65-year-old enrolled in plan G can expect to pay between $165 and $235 in 2027. On average, rural areas tend to have lower rates than urban markets.

Can I switch from Medicare Advantage to Medigap if I move?

Yes, you can switch from Medicare Advantage to Medigap if you move and your MA plan isn’t available in your new location. You have guaranteed issue rights to choose a new plan within 63 days; otherwise, you may face medical underwriting.

Will my Medigap premium automatically decrease if I move to a cheaper area?

Your Medigap premium may not automatically decrease if you move to a cheaper area, although rural areas tend to have lower premiums on average. You may need to contact your insurer to request a rate review, or compare quotes from local carriers in order to obtain a lower premium.