I Refused to Pay High Rates at 67 – This is What I Did Instead
How switching from Medigap to a zero premium Medicare Advantage plan put over $3,300 a year back in my pocket
Short Summary
At 67, I was paying over $280 a month for my Medigap Plan G. When my insurer tried to raise it to $312, I said no. Instead, I researched zero premium Medicare Advantage plans available in my area and made the switch. It wasn’t a decision I took lightly — but it ended up saving me more than $3,300 a year. In this article, I walk you through what I discovered about switching from Medigap to Medicare Advantage, which $0 premium plans are worth considering, what the hidden tradeoffs really are, and how to decide if this move makes sense for you too. If you’re 65 or older and tired of watching high Medigap premiums eat into your retirement, this might be the most important thing you read this year.
TL;DR – Quick Summary
- I was paying $280–$312/month for Medigap Plan G at age 67 — and the rates kept going up every year.
- I switched to a zero premium Medicare Advantage plan and dropped that monthly cost to $0.
- Yes, you can switch from Medigap to Medicare Advantage — but timing and research matter enormously.
- I saved over $3,300 a year after the switch — plus gained dental and vision coverage I never had with Medigap.
- The tradeoffs are real, but for many seniors, the numbers simply don’t lie.
- Keep reading for my full breakdown, side-by-side comparison tables, and a step-by-step action plan.
Why Was I Shocked by My Medigap Premiums at Age 67?
I remember the exact moment it happened. It was a Tuesday in late November — I was sitting at my kitchen table, coffee going cold beside me, opening a thick envelope from my insurance company. The kind of envelope you already know contains bad news.
My Medigap Plan G premium was going up again. From $281 a month to $312. Just like that.
I did the math on a napkin right there. $312 times 12 months. That’s $3,744 a year — just for a supplement policy to fill in Medicare’s gaps. Just for coverage I hoped I’d never need to use heavily. And this was on top of my Medicare Part B premium, my drug plan, and of course everything else retirement throws at you.
I’m not a spender. I worked 34 years as an operations manager for a logistics company in the Southeast. I saved carefully. I have a modest pension and Social Security. I live within my means. But nearly $4,000 a year — and climbing — for a single insurance policy started to feel like something had gone seriously wrong.
So I did something I’d never really done before: I pushed back.
I called my insurance company. I asked if there was any room to negotiate. There wasn’t. I called my insurance agent. She was sympathetic — and then she said something that changed the trajectory of this whole story:
“Have you ever looked seriously at zero premium Medicare Advantage plans?”
I’d heard the term before. I’d dismissed it as gimmicky. Something for people who couldn’t afford “real” coverage. But this time, I listened. And then I went home and spent two weeks doing what I probably should have done years earlier: actual, serious research.
“The mistake wasn’t enrolling in Medigap at 65. The mistake was never questioning whether it still made sense at 67.”
By the time I was done, I had made my decision. And I haven’t regretted it for a single day since.
How Much Are People Really Paying for Medigap in 2026?
Before I explain what I did, let’s talk about what you — or your neighbor, your sibling, your old coworker — might actually be paying for Medigap right now. Because I’ve learned that most people genuinely underestimate how expensive these premiums get over time.
When I first enrolled in Medigap Plan G at 65, I was paying around $145 a month. It seemed reasonable. My agent presented it as the “gold standard” of Medicare supplement coverage, and I trusted her. What she didn’t explain in any meaningful way was that Medigap premiums increase almost every single year — sometimes by 5%, sometimes by 10%, and the increases tend to accelerate as you age.
Here’s a realistic picture of what people are paying for Medigap Plan G — one of the most popular and comprehensive plans — in 2026:
Sit with those numbers for a moment. If you enrolled in Medigap Plan G at 65 and stayed on it until 80, you could easily spend $40,000 to $55,000 in premiums alone — before you even count what you paid toward actual medical care.
And here’s the thing nobody wants to say out loud: most of those premium dollars go to people who stay healthy. If you’re fortunate enough to be relatively healthy in retirement, you may be dramatically overpaying for the peace of mind Medigap provides.
That realization was the first piece of my puzzle.
Can You Actually Switch from Medigap to Medicare Advantage?
This was the first real question I asked. And I’ll spare you the suspense: yes, you absolutely can switch from Medigap to Medicare Advantage. But — and this is an important but — the rules around when and how you do it matter quite a bit.
I assumed for years that Medigap was a commitment. Once in, always in. That’s simply not true. What is true is that the process requires some careful planning, and the switch is much easier to make in one direction than the other (more on that in a moment).
Step-by-Step: How to Switch from Medigap to Medicare Advantage
- Identify your enrollment window. The Annual Enrollment Period (AEP) runs October 15 through December 7 each year. Changes take effect January 1st. This is the primary window for most people. There are also Special Enrollment Periods for qualifying life events.
- Compare plans in your specific ZIP code. Medicare Advantage availability varies dramatically by location. Use Medicare.gov’s official Plan Finder or call 1-800-MEDICARE to see which $0 premium plans are available near you.
- Verify every doctor you see is in-network. Call your doctors’ billing offices directly — not just the insurer’s hotline. Confirm that the specific practice location is in-network, not just the doctor’s name.
- Run your medications through the drug formulary. Every Medicare Advantage plan has a formulary — a list of covered drugs and their cost tiers. Make sure yours are covered before you commit.
- Enroll in your chosen Medicare Advantage plan. You can do this online at Medicare.gov, by phone, or through a licensed broker. Once enrolled, your Advantage coverage starts January 1st.
- Cancel your Medigap policy — but only after your new coverage begins. Contact your Medigap insurer to cancel. Time it so you have zero gap in coverage. Don’t cancel it early and risk a coverage gap.
For a much deeper walkthrough of this entire process, I’ve put together a dedicated guide: How to Switch from Medigap to Medicare Advantage — it’s the step-by-step resource I wish I’d had.
What About Switching Back? Is Medicare Advantage to Medigap Possible?
Here’s where things get asymmetric — and where I want you to pay close attention.
Switching from Medigap to Medicare Advantage is relatively straightforward. Switching back is a different story. In most states, if you try to return to Medigap after being on Medicare Advantage, insurance companies are allowed to subject you to medical underwriting. That means they can review your current health status, deny your application, or charge you significantly higher premiums based on pre-existing conditions.
There are certain protected situations — if your Advantage plan leaves the market, or you move out of the service area — where you may have a guaranteed issue right to return to Medigap. But in most circumstances: leaving Medigap is close to a one-way door.
This is the single most important reason I took so long before making my decision. And it’s the same reason I can’t recommend this switch for everyone. If you’re exploring the reverse direction, read: Should You Switch from Medicare Advantage Back to Medigap?
What Happened When I Refused to Pay Those High Rates?
I’ll be honest: saying “no” felt strange at first. Medigap had been my safety net. That little card in my wallet felt like a guarantee. But when I held that renewal letter and stared at $312 a month, I kept doing what my father used to call “the retirement math” — adding up what I’d spend over years, not just months.
At $312 a month, I was looking at $3,744 a year. Over the next ten years — if premiums stayed flat, which they never do — that would be over $37,000 in premiums. In reality, with typical annual increases, that number would be closer to $50,000. For a supplemental plan.
I picked up the phone. I called my insurer first. Their answer was polite but clear: the rate was the rate. Then I called my agent. She mentioned the idea of switching to a Medicare Advantage plan with zero premiums — something she’d brought up before but that I’d never taken seriously.
This time, I took it seriously.
I spent about two and a half weeks researching. I used Medicare.gov’s Plan Finder. I called my primary care doctor’s office and confirmed she was in-network on two of the plans I was considering. I listed my four daily medications and checked the formulary on each plan. I compared the out-of-pocket maximums. I even called a free SHIP counselor — a State Health Insurance Assistance Program advisor — who walked me through the tradeoffs without trying to sell me anything.
By Thanksgiving, I had enrolled in a Medicare Advantage plan with a $0 premium, a $4,900 out-of-pocket maximum, my doctor in-network, all my medications covered, and — this was a bonus I genuinely hadn’t expected — a $150/quarter over-the-counter allowance and free gym membership through SilverSneakers.
The switch itself was remarkably smooth. The hardest part was psychological — letting go of the predictability and familiarity of Medigap. But once I’d done the verification work (doctors, drugs, costs), the decision stopped feeling like a gamble and started feeling like a logical response to real numbers. I haven’t had a single regret in the time since.
My new coverage started January 1st. I canceled my Medigap policy on January 3rd, after confirming my Advantage card had arrived. And that was that.
Is Medicare Advantage Really Cheaper Than Medigap?
This is the heart of the whole debate. And the honest answer is: usually yes — if you’re relatively healthy. The math shifts for people who use healthcare frequently or face serious medical events.
Medigap and Medicare Advantage just structure costs completely differently. Medigap charges you a high monthly premium, but when you use care, your costs are minimal or zero (after the Part B deductible). Medicare Advantage, especially zero premium plans, charges you nothing monthly — but you pay copays, coinsurance, and possibly deductibles when you actually receive care.
The critical variable is the out-of-pocket maximum on Medicare Advantage plans. Once you hit that ceiling in a given year, the plan covers 100% of in-network costs. In 2026, the legal cap for in-network expenses is around $8,850 — but many strong plans set their maximums considerably lower.
The bottom line: for a healthy 67-year-old who visits the doctor a few times a year, zero premium Medicare Advantage will almost certainly cost significantly less than Medigap. For someone with chronic illness who visits specialists frequently or faces hospitalizations, Medigap’s predictability may outweigh the premium savings.
I’ll give you the full mathematical breakdown in our dedicated article: Medicare Advantage vs Medigap Cost Comparison 2026.
Which Zero Premium Medicare Advantage Plans Are Worth Considering?
When I started looking at zero premium Medicare Advantage plans, I expected a short list of mediocre options. Instead, I found a competitive marketplace — especially in suburban and metro areas — where major national insurers were aggressively trying to win beneficiaries with $0 premium plans loaded with extra perks.
The availability depends entirely on your location. Urban counties tend to have the most competition and the best $0 premium plans. Rural areas may have fewer options or none at all. But if you’re in a reasonably populated area, here’s what the major carriers are offering:
Don’t choose a plan based on the carrier name alone. The specific benefits, network, formulary, and out-of-pocket maximum vary enormously between plans — and even between the same carrier’s different plans in the same county. Always compare the specific plan details on Medicare.gov’s Plan Finder, not just the brand.
For a full deep-dive into the best options nationally, read: Best $0 Premium Medicare Advantage Plans in 2026. And if you want to see what’s available specifically in your state: Top Zero Premium Medicare Advantage Plans by State.
How Do Zero Dollar Medicare Advantage Plans Actually Work?
I know what’s going through your mind right now. “If it’s free, somebody’s gotta be paying for it. What’s the catch?”
It’s the right instinct. Here’s the straightforward explanation.
When you enroll in any Medicare Advantage plan, the federal government stops paying your hospital and medical costs directly through traditional Medicare. Instead, it pays a fixed monthly amount — called a capitation payment — directly to the insurance company on your behalf. Think of it as the government writing a check to the insurer every month to cover your share of Medicare.
In regions where there’s robust Medicare enrollment and strong competition among insurers, those capitation payments can be generous enough that the insurer covers their costs without needing to charge you a premium on top. That’s why you see zero dollar Medicare Advantage plans in competitive markets — the government payment alone is enough for the insurer to break even or profit.
You still pay Medicare Part B every month (currently $174.70/month for most people in 2024). That’s non-negotiable and goes straight to Medicare, not to your Advantage plan. What’s zero is the Advantage plan’s own premium — the amount the insurer would otherwise charge on top of Part B.
Where do insurers make their money on zero premium plans?
- Government capitation payments for each enrolled member
- Copays and coinsurance you pay when you actually use care
- Efficient care management and coordination that reduces costly interventions
- Risk-adjustment bonuses from the government for managing higher-need patients
So “zero” means zero monthly premium from your pocket — not zero cost forever under all circumstances. For a plain-English breakdown of exactly how this works, read: What Are Zero Dollar Medicare Advantage Plans? and What Does Medicare Zero Premium Actually Mean?
What Are the Real Pros and Cons of Switching to Medicare Advantage at 67?
I’m not here to talk you into anything. I made this switch and I’m glad I did — but I made it after careful research and in a situation that suited it. The right answer genuinely depends on your health, your habits, and your finances. Here’s the full picture as I see it:
For a dedicated analysis of whether this switch makes financial sense specifically for your situation, read: Is Switching from Medigap to Medicare Advantage Worth It?
How Much Money Did I Save After Making the Switch?
This is the section I know you’ve been waiting for. Let’s get into the real numbers — not hypothetical averages, but what I personally paid before and after.
Before the switch, my monthly Medicare-related expenses looked like this:
After the switch, my monthly Medicare-related expenses became:
Annual Savings: ~$3,450 🎉
In three years, that’s over $10,000 that stayed in my retirement account instead of going to an insurance company. That’s real money — travel, grandkids, peace of mind, a cushion if something unexpected happens.
And I should mention: my new plan also gave me dental coverage for the first time since leaving my employer plan. I saved another $800 that year on out-of-pocket dental costs I’d been paying privately. So the true savings were even larger.
What Should You Watch Out For Before Switching from Medigap?
I want to give you the same straight talk I wish someone had given me — which means not sugarcoating the risks. Here are the things that can go wrong, and how to protect yourself against them.
⚠️ 1. Your Doctors May Not Be In-Network
This is the number-one issue I hear about from people who regret switching. Don’t assume — verify. Call your doctor’s billing department directly (not just the front desk), confirm the specific practice location is in-network on the specific plan you’re considering, and get it in writing if possible. If your doctor is in-network on one plan but not another, that’s your decision-maker.
⚠️ 2. Prior Authorization Can Delay Care
Medicare Advantage plans can require pre-approval for certain procedures, specialist referrals, or inpatient stays. This doesn’t mean they’ll deny you care — but it adds a layer of bureaucracy that traditional Medicare and Medigap don’t have. If you have a chronic condition that requires frequent procedures or specialist involvement, this can be a meaningful friction point.
⚠️ 3. Drug Formularies Change Every Year
Your medications might be covered perfectly in Year 1 and moved to a higher cost tier in Year 2. Review your plan’s formulary at every Annual Enrollment Period. This is not a one-and-done check — it’s annual homework.
⚠️ 4. Know Your Out-of-Pocket Maximum Cold
Before you enroll, know exactly what your plan’s in-network out-of-pocket maximum is. If you have a catastrophic health year — a cancer diagnosis, a major surgery, an extended hospital stay — that’s your financial ceiling. The difference between a $4,500 max and an $8,850 max is enormous.
⚠️ 5. Getting Back to Medigap Is Harder Than You Think
I want to be very direct here: in the majority of states, if you switch to Medicare Advantage and then want to return to Medigap later — especially after developing a new health condition — insurance companies can reject you or charge much higher premiums. This “one-way door” reality is the most underappreciated risk in this whole decision.
Spend at least 2–3 weeks researching before making this switch. Use Medicare.gov’s Plan Finder. Call 1-800-MEDICARE. Find your local SHIP counselor at shiphelp.org — they offer free, unbiased Medicare guidance with no commission motive. Don’t rely solely on broker recommendations; some earn higher commissions on specific plans and may not show you every option available.
For the complete step-by-step guide on how to switch safely: How to Switch from Medicare Supplement to Medicare Advantage.
Is Switching from Medigap to Medicare Advantage Right for You?
Honestly? It depends on your specific situation. I hate that answer as much as you do — but it’s the only honest one. What I can do is give you a quick self-assessment to help you think it through clearly.
Quick Self-Assessment: Is This Switch Right for You?
✅ The switch likely makes sense if you…
- Are relatively healthy with low-to-moderate healthcare usage
- Have your current doctors confirmed as in-network on plans you’re considering
- Have your current medications covered on the plan’s formulary
- Live primarily in one area and don’t travel extensively for long periods
- Would genuinely use and value the extra benefits (dental, vision, OTC allowance)
- Are comfortable with copays in exchange for zero monthly premiums
❌ The switch may NOT make sense if you…
- Have serious chronic conditions requiring frequent hospitalizations or specialist visits
- Travel extensively and need seamless nationwide doctor access
- Live in a rural area with very limited or no $0 premium Advantage options
- Take expensive specialty medications that might not be well-covered on Advantage formularies
- Have significant healthcare events likely in the near future (scheduled surgeries, known treatments)
Frequently Asked Questions
Q: Can I switch from Medigap to Medicare Advantage during any month of the year?
No. The main enrollment window is the Annual Enrollment Period: October 15 through December 7. Changes go into effect January 1st. Special Enrollment Periods exist for qualifying circumstances like losing coverage or moving.
Q: If I enroll in Medicare Advantage, does my Medigap policy automatically cancel?
No — it does not automatically cancel. You must contact your Medigap insurer separately to cancel. Do this after your Advantage coverage starts to avoid any coverage gap. If you cancel before your Advantage coverage begins, you’ll have a period with no supplement coverage.
Q: Are zero premium Medicare Advantage plans available in every state?
No. Availability varies significantly by state, county, and ZIP code. Metro areas tend to have more options and better plans. Some rural counties have very limited choices. Always check Medicare.gov with your specific ZIP code.
Q: What happens if I get very sick after switching to Medicare Advantage?
Your plan’s out-of-pocket maximum protects you — once you hit that cap, all additional in-network care is covered at 100% for the rest of the year. However, if you then want to return to Medigap, you’ll likely face medical underwriting in most states.
Q: Are no premium Medicare supplement plans the same as zero premium Medicare Advantage plans?
No — these are completely different products. Genuine Medigap (Medicare Supplement) plans almost never come at $0 premium. Zero premium plans are Medicare Advantage (Part C) plans, which replace Original Medicare. Learn more: No Premium Medicare Supplement Plans – Do They Exist?
For the full comparative analysis to help you decide: Is Switching from Medigap to Medicare Advantage Worth It?
What Should You Do Next If You Also Hate High Medicare Rates?
If you’ve read this far, you’re in the same place I was — staring at your premium notice and wondering if there’s a smarter way to do this. There is. Here’s exactly what I’d do if I were starting fresh today.
Your Step-by-Step Action Plan
- Go to Medicare.gov/plan-compare. Enter your ZIP code and view all Medicare Advantage plans available in your area. Filter by $0 premium. Don’t skip this step — availability varies dramatically by location.
- List every medication you take. Run each one through the formulary checker for every plan you’re considering. Tier 3 or Tier 4 drug costs can easily cancel out premium savings if you’re on expensive medications.
- Call your doctors’ offices directly. Ask whether they accept the specific plan you’re considering — not just Medicare Advantage in general. The billing department will have the most accurate answer.
- Contact your State SHIP counselor. These are certified, unbiased Medicare advisors who work for free. Find yours at shiphelp.org. This was one of the most valuable conversations I had during my research.
- Compare at least 3 plans side by side. Look at the out-of-pocket maximum, doctor network, drug formulary, copay structure, and extra benefits. Don’t just compare premiums.
- Enroll during the Annual Enrollment Period. October 15 to December 7. Set a reminder now if this window is ahead of you.
- Cancel your Medigap policy after your new coverage starts. Not before. Wait until January 1st has passed and your Advantage card is in your hand. Then call your Medigap insurer to cancel and stop the premium payments.
Want to know what’s available in your specific state? Read: Top Zero Premium Medicare Advantage Plans by State.
Want to explore the best national options for $0 premium coverage? Read: Best Medicare Advantage Plans with $0 Premium.
And if you need more information on how zero premium plans work before you commit to anything: What Does Medicare Zero Premium Actually Mean?
You Have More Options Than You Think
At 67, I decided that sticking with the familiar — and expensive — thing out of habit wasn’t wisdom. It was just inertia. If your Medigap premiums are climbing and you haven’t seriously looked at the alternatives, now is the time.
👉 Start at Medicare.gov/plan-compare — enter your ZIP code and see what zero premium plans are available near you today.
11 Responses
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