The Cost of Medigap Prescription Drug Coverage

Examines the price of the standard Medigap policies (H, I, and J) that cover prescription drugs. Notes that premiums for these policies are high, at about $1,400 per year for minimum coverage, with wide state variation. Furthermore, the average cost to upgrade a policy to cover drugs ranges from 31 to 142 percent, and state rules and regulations are complex. The authors conclude that it is neither simple nor inexpensive for Medicare beneficiaries to obtain this type of coverage.