The Medicare Advantage vs Medigap choice is harder this year, because the cheapest plan on paper may not be the cheapest one in a bad year. Open enrollment ends December 7, and the in-network out-of-pocket cap for Medicare Advantage rises to $9,850 for 2027 from $9,250, according to the Center for Medicare Advocacy. CMS says the average monthly premium for Medicare Advantage plans falls to $12.00 from $14.37, but analysts say that number leans on low premium special needs plans and understates increases for most enrollees, according to Healthcare Dive. At least 3.8 million people must pick new coverage because their plans changed or left. The official 2027 Part B premium has not been announced, and CMS usually posts it in mid-November, so every Part B number below is a projection until then. We’ll be updating this article monthly.
Here is the short version. Medicare Advantage usually costs less up front and more when you are sick. Medigap, also called Medicare Supplement insurance, usually costs more every month and much less when you are sick. Both require you to keep paying the Part B premium, which the 2026 Medicare Trustees Report projects at about $209.50 for 2027, up from $202.90. The deciding factors are your health, your doctors, your state and how much risk you can handle. If you are healthy and your doctors are in the network, Advantage can save thousands. If you travel, see specialists or worry about a large bill, Medigap can be worth the extra premium. Below are the numbers, the deadlines, the rules for switching back and a calculator to test your own case before the window closes.
Medicare Advantage vs Medigap Key Highlights
| Feature | Medicare Advantage | Medigap (Medicare Supplement) |
|---|---|---|
| How it works | Private plan replaces Original Medicare | Private policy added to Original Medicare |
| 2027 average monthly premium | $12.00 weighted average, per CMS | Varies by age, state and plan, a Plan G example starts near $145 a month |
| Part B premium still owed | Yes | Yes |
| Annual out-of-pocket limit | $9,850 in network in 2027, plans may set lower | No annual cap, but the policy covers most cost sharing |
| Drug coverage | Often built in | Not included, buy a Part D plan |
| Provider choice | Network rules apply | Any provider that accepts Medicare |
| Plan changes each year | Yes, premiums, copays and networks | Benefits are standardized by plan letter |
| Extra benefits | Dental, vision, hearing often included | Not included |
The $12.00 figure and plan counts come from CMS, the $9,850 limit from the Center for Medicare Advocacy and the Plan G example from NerdWallet’s 2026 sample. Medigap premiums depend on where you live and how old you are, so get quotes.
Latest News: What Changed for 2027
The biggest news is that Advantage plans got paid more. CMS finalized a 2.48 percent payment increase for 2027, up from the 0.09 percent it proposed in the advance notice, which is about $13 billion in added payments, according to Fierce Healthcare. A delay of planned risk adjustment changes drove much of the increase. Insurers had argued that flat rates would force benefit cuts and market exits.
Even so, plans are trimming. Total Medicare Advantage plans nationally dip from 5,553 to 5,532, CMS says, but many insurers cut individual plans, and Humana is dropping about 2,400 and UnitedHealthcare about 690, according to Healthcare Dive using Stephens research. Centene is leaving 344 counties, the most of any big public insurer. Healthcare Dive also reports that average out-of-pocket limits rise about 10 percent and Part D deductibles about 30 percent, and that about 70 percent of plan leaders expect less rich benefits in 2027, per a HealthScape Advisors survey.
CMS projects 34 million people in Advantage plans, about 47.4 percent of people with Medicare. CMS also says about 8 in 10 enrollees can keep their plan at the same or lower premium, and more than 99 percent have at least one plan. Alaska will have none, according to KOMO.
On the drug side, the standalone Part D out-of-pocket cap rises to $2,400 from $2,100, with a standard deductible of $700, according to KOMO and the Center for Medicare Advocacy. The Part D Premium Stabilization Demonstration ends, so many drug plan premiums rise.
How Much Does Medicare Advantage Cost in 2027?
Most people pay the Part B premium plus a low or zero plan premium. CMS puts the weighted average Advantage premium at $12.00 for 2027, down 16.5 percent. Treat that as a floor, not a forecast. Healthcare Dive notes the industry weighted average is roughly flat, up about 1 percent according to Leerink Partners, and that fewer plans charge zero premium.
The real cost shows up when you use care. Advantage plans charge copays and coinsurance for doctor visits, hospital stays and tests, and then stop at an annual cap. The in-network maximum is $9,850 in 2027, up from $9,250. KFF found that in 2026 the average enrollee’s in-network limit was $5,421, and that 9 percent of enrollees were in plans at the maximum. HMO plans averaged $4,636 and PPOs $6,592, KFF says. Plans can set a lower limit than the federal maximum, so read your own Evidence of Coverage.
A plan with a $0 premium and a $6,000 limit is not free. A hospital stay and a few specialist visits can push you toward that limit in a single year.
How Much Does Medigap Cost in 2027?
Medigap premiums depend on your age, location, gender in some states and the pricing method the insurer uses. NerdWallet’s 2026 sample shows a Plan G starting at $145 a month for a 65-year-old nonsmoking woman in Atlanta, which is about $1,740 a year, and says prices range from about $30 or $40 a month up to $300 or more. I could not find a reliable national average for 2027. The only 2027 Medigap forecast I found had little sourcing, so I did not use it.
What do you get for the premium? Plan G, as commonly described, pays most Medicare cost sharing and leaves you with the Part B deductible, which is $283 in 2026 and projected at about $292 in 2027. That is general knowledge about the standardized plans, so confirm the details with a licensed agent or the plan’s outline of coverage. Plan F is closed to people who became eligible for Medicare on or after January 1, 2020, which is also general knowledge.
Medigap does not include drug coverage. You need a separate Part D plan, and CMS says the average standalone Part D premium rises from $35.09 to $36 for 2027.
Which Plan Costs Less?
Use this table as a rough guide. It combines NerdWallet’s 2026 sample figures with the projected 2027 Part B numbers. It excludes drug costs, which are similar for both choices, and is meant to show the shape of the trade, not to predict your bill.
| Item | Medicare Advantage | Medigap Plan G |
|---|---|---|
| Plan premium, per year | $144 at the $12 CMS average | $1,740 at the $145 sample |
| Part B premium, per year | About $2,514 at $209.50 projected | About $2,514 |
| Part B deductible | Not usually separate, copays apply | About $292 projected |
| Healthy year cost sharing | About $90 in the NerdWallet sample | $0 beyond the deductible |
| Sick year cost sharing | Up to $9,850 at the 2027 limit | $0 beyond the deductible |
| Healthy year total | About $2,748 | About $4,546 |
| Sick year total | About $12,508 | About $4,546 |
On these assumptions, Advantage wins in a healthy year by roughly $1,800 and Medigap wins in a very sick year by roughly $8,000. The break even point is around $1,900 in annual Advantage cost sharing. Plug in your own premium and your own expected care in the calculator below.
Part B, Part A and Other 2027 Medicare Costs
CMS usually announces the official numbers in mid-November. The 2026 figures came out November 14, 2025, according to a summary of CMS data. As of late October, the 2027 premium and deductible had not been announced, so the following are projections.
| Cost | 2026 official | 2027 projected |
|---|---|---|
| Part B premium | $202.90 | About $209.50 |
| Part B deductible | $283 | About $292 |
| Part A hospital deductible | $1,736 | About $1,788 |
| Part D out-of-pocket cap | $2,100 | $2,400, set by CMS |
| Part D maximum deductible | $615 | $700 |
The Social Security COLA is 3.6 percent for 2027, announced October 14, which is about $75 a month for the average beneficiary, according to Forbes. Using the projected Part B increase, Forbes calculates that a typical beneficiary would keep roughly $68 of that raise. A newsletter page I reviewed listed $202.90 as the 2027 Part B premium, but that is the 2026 figure, so I did not use it.
Switching Rules: The Part That Can Cost You
The cheapest plan can become the most expensive if you cannot switch back. Medigap rules are the catch.
When you first have Part B and are 65 or older, you get a six month Medigap open enrollment period. During it, insurers generally cannot deny you or charge more because of your health. After that, insurers in most states can use medical underwriting, which means a higher price or a denial, according to NerdWallet. Connecticut, Massachusetts, Maine and New York have stronger protections, though the details differ, and WTOP reports that New York, Connecticut and Massachusetts allow plan changes year round. Some guaranteed issue exceptions exist, such as when your Advantage plan leaves the market. The birthday rule, which lets people change Medigap plans around their birthday, applies in 15 states, and New Mexico adds it in 2027, according to WTOP.
Moving from Medigap to Advantage may cancel your Medigap policy. Moving back later may mean underwriting. That is why many advisers suggest thinking about your health five years from now, not only today.
How to Switch or Enroll in Medicare Advantage or Medigap?
This is the practical process. You do not apply to the IRS or Social Security for these plans. You enroll through insurers or Medicare.
- Read your Annual Notice of Change if you already have a plan. It should have arrived by September 30.
- Compare plans at Medicare.gov. Provider directories went live October 9, according to the Center for Medicare Advocacy.
- Check that your doctors, hospitals and drugs are covered by any Advantage plan you consider.
- For Medigap, get quotes for the same plan letter from several insurers, because prices for identical coverage can differ widely.
- Enroll with the insurer or through Medicare.gov before December 7 for a January 1 start.
- Keep confirmation numbers and your new card. Cancel the old plan only after the new one is confirmed.
- Call your State Health Insurance Assistance Program for free, unbiased help.
Processing Time and Effective Dates
Changes made during open enrollment take effect January 1, 2027. If your plan is leaving and you do nothing, many people are moved to a similar plan from the same insurer, and if none exists you can land in Original Medicare without drug coverage on January 1, according to the Center for Medicare Advocacy. A new Medigap policy usually needs an application and, outside your open enrollment period, medical underwriting, which can take days to weeks. Ask your agent about timing before you cancel anything.
Payment Schedule: When You Pay and When the Money Moves
| Payment | How it works |
|---|---|
| Part B premium | Usually deducted from your Social Security check, the new amount starts with the January 2027 payment |
| Medicare Advantage premium | Paid to the plan, or deducted from Social Security if you choose |
| Medigap premium | Monthly, quarterly or annual, paid to the insurer |
| Part D premium | Paid to the plan or deducted from Social Security |
| Social Security COLA | 3.6 percent, starts with December benefits, paid in January |
Key Dates for Medicare Advantage vs Medigap in 2027
| Date | What happens |
|---|---|
| September 28, 2026 | CMS posts 2027 plan landscape details |
| October 15, 2026 | Annual open enrollment begins |
| Mid-November 2026 | CMS usually announces the 2027 Part B premium and deductible |
| December 7, 2026 | Annual open enrollment ends |
| December 8, 2026 to February 28, 2027 | Special enrollment for people whose plan is leaving |
| January 1, 2027 | New plans and costs begin |
| January 1 to March 31, 2027 | Medicare Advantage Open Enrollment Period, one change for current enrollees |
Medicare Advantage vs Medigap Cost Calculator
Medicare Advantage vs Medigap Cost Calculator
Defaults use projected 2027 numbers: Part B premium $209.50, Part B deductible $292, Advantage in-network cap $9,850 and CMS average Advantage premium $12. The Medigap premium is an example, so replace it with a real quote. Drug costs are left out.
Illustrative only. The Medigap line assumes a plan that leaves you with the Part B deductible and no other cost sharing, like Plan G as commonly described, so confirm with the plan outline. Both options require the Part B premium. The official 2027 Part B figures were not yet announced when this was written. Results ignore drug plans, non-covered services and out-of-network costs. Check Medicare.gov and speak with a licensed agent or your State Health Insurance Assistance Program.
Mistakes to Avoid When Choosing Between the Two
A few errors cost people the most money, so it is worth slowing down before you click enroll.
Do not compare premiums alone. Do not assume your doctor is in network next year, since networks change. Do not drop Medigap for a low premium Advantage plan without understanding how hard it can be to return. Do not ignore drug costs, which can differ even when the medical plans look similar. Do not rely on one agent, because commissions can steer recommendations, as the KOMO report cautions. Take your time, ask for the plan’s outline of coverage in writing and compare at least three quotes.
Official Resources for Medicare Advantage vs Medigap
| Resource | Link | Use it for |
|---|---|---|
| Medicare.gov Plan Finder | https://www.medicare.gov/plan-compare | Compare Advantage, Medigap and drug plans |
| Medicare.gov | https://www.medicare.gov | Costs, rules and enrollment |
| CMS | https://www.cms.gov | Official premium and plan announcements |
| Social Security Administration | https://www.ssa.gov | Part B deductions and my Social Security login |
| SHIP locator | https://www.shiphelp.org | Free local counseling |
| Medicare Rights Center | https://www.medicarerights.org | Plain language help |
| Center for Medicare Advocacy | https://medicareadvocacy.org | Enrollment guidance |
| KFF | https://www.kff.org | Research on Advantage costs |
| 1-800-MEDICARE | 1-800-633-4227 | Questions and plan help |
FAQs About Medicare Advantage vs Medigap
Which costs less, Medicare Advantage or Medigap?
Advantage usually costs less in premiums, and Medigap usually costs less when you use a lot of care. The break even depends on your health and plan.
What is the Medicare Advantage out-of-pocket limit for 2027?
The in-network maximum is $9,850, up from $9,250, according to the Center for Medicare Advocacy. Plans may set lower limits.
Do I still pay Part B with Medicare Advantage?
Yes. Both choices require the Part B premium, which is projected at about $209.50 for 2027.
Can I switch from Medicare Advantage to Medigap?
You may be able to, but outside guaranteed issue rights insurers in most states can use medical underwriting.
When is open enrollment for 2027?
October 15 to December 7, 2026. Changes take effect January 1.
Can I change plans after December 7?
Current Advantage enrollees can make one change from January 1 to March 31, 2027, and some people qualify for special enrollment periods.
Does Medigap cover prescriptions?
No. You need a separate Part D plan.
Is Medigap worth the extra cost?
It depends on your health and risk tolerance. Medigap gives predictable costs and broad provider choice, but the monthly premium is higher.
What is the average Medicare Advantage premium?
CMS reports $12.00 for 2027, down from $14.37, though analysts say the figure understates costs for general enrollees.
Why are Medicare Advantage plans leaving?
Insurers cite rising costs and utilization. Healthcare Dive reports that Centene is exiting 344 counties for 2027.
Can I be denied Medigap?
Outside your open enrollment period and guaranteed issue rights, insurers in many states can deny coverage based on health.
Which Medicare Supplement plan is best?
Many people compare Plan G and Plan N. The right answer depends on your budget and how much cost sharing you can handle, so compare quotes.
Does Medicare Advantage cover dental, vision and hearing?
Many plans do, and CMS expects these benefits to stay stable, though nearly 70 percent of plan leaders expect less rich packages, according to a HealthScape survey.
Will my Part B premium go up in 2027?
It is projected to rise to about $209.50, but CMS has not announced the official figure.
How many people are in Medicare Advantage?
CMS projects 34 million in 2027, about 47.4 percent of people with Medicare.
Conclusion
The Medicare Advantage vs Medigap decision is really a bet on your health, your doctors and your risk tolerance. Advantage costs less if you stay healthy and use in-network care, and the 2027 cap now reaches $9,850. Medigap costs more every month but protects you from big bills and lets you see any doctor who takes Medicare. Before December 7, read your plan notice, check your doctors and drugs, run your own numbers in the calculator and speak to a free counselor at your SHIP. If your plan leaves, act early so you are not moved without drug coverage. We’ll be updating this guide when CMS publishes the official 2027 Part B figures.
