How Medicare Plan Comparison Calculator Works
Our free Medicare plan comparison calculator helps people turning 65 (or already on Medicare) understand the true cost of each coverage option based on how they actually use healthcare. Medicare is notoriously confusing — Original Medicare, Medigap supplements, Medicare Advantage, Part D drug plans — and choosing wrong can cost thousands per year.
The calculator models four main coverage strategies: Original Medicare with Medigap Plan G (comprehensive gap coverage), Original Medicare with Medigap Plan N (lower premium, some copays), Medicare Advantage low-premium plan (network restrictions, built-in drug coverage), and Medicare Advantage broad-network plan (higher premium, more flexibility).
You enter your income (to calculate IRMAA surcharges on Parts B and D), expected healthcare usage (doctor visits, specialists, ER, prescriptions), and any late enrollment periods. The tool then calculates total annual cost for each strategy: premiums + deductibles + copays + coinsurance + prescription costs.
The IRMAA calculation is critical — high-income retirees (over $103,000 single / $206,000 married) pay substantially more for Parts B and D. A retiree earning $150,000 pays $840 more per year in Part B premiums alone. The tool models all income tiers.
For retirement planning context, use the Retirement Withdrawal Strategy Planner to manage income and potentially reduce IRMAA exposure, or the Social Security Benefits Optimizer to coordinate Medicare timing with Social Security decisions.
Key Terms Explained
- Original Medicare
- The federal program (Parts A + B) that covers hospital stays (Part A) and doctor visits/outpatient care (Part B). Covers 80% of approved costs after deductibles with no out-of-pocket maximum.
- Medicare Advantage (Part C)
- Private insurance plans that replace Original Medicare. Must cover everything Parts A+B cover, often add drug coverage and extras. Have networks and out-of-pocket maximums.
- Medigap (Supplement)
- Private insurance that fills the gaps in Original Medicare — covering deductibles, coinsurance, and copays. Plans are standardized (G, N, etc.) but premiums vary by insurer.
- IRMAA
- Income-Related Monthly Adjustment Amount — a surcharge on Part B and Part D premiums for high-income beneficiaries. Based on income from 2 years prior. Ranges from $70 to $420+ per month above standard.
- Part D
- Medicare prescription drug coverage. Available as a standalone plan (with Original Medicare) or built into Medicare Advantage. Has a coverage gap (donut hole) and catastrophic threshold.
- Initial Enrollment Period
- The 7-month window (3 months before, month of, 3 months after turning 65) when you can enroll without penalty. Missing it triggers permanent late enrollment penalties.
Who Needs This Tool
Overwhelmed by Medicare options during their Initial Enrollment Period and needs to understand which combination covers their needs at the lowest total cost.
Earning $180,000 in retirement and wants to understand IRMAA impact and whether Roth conversions or income timing could reduce Medicare costs.
Takes no medications and rarely sees doctors — wants to know if a $0-premium Medicare Advantage plan is actually cheaper than Original Medicare + Medigap.
Has diabetes and sees specialists quarterly — needs to compare which plan type handles frequent visits and multiple prescriptions most cost-effectively.
Methodology & Formulas
Total Annual Cost per option = (Monthly Premiums × 12) + Annual Deductibles + (Copays × Expected Visit Count) + (Coinsurance × Estimated Costs Above Deductible) + Prescription Costs. IRMAA surcharge applied based on MAGI from 2 years prior using current threshold tables. Late enrollment penalty: Part B = 10% per 12-month gap × standard premium permanently; Part D = 1% per month gap × national average premium permanently. Options ranked by total annual cost.
Pro Tips
- Medigap Plan G is the most popular supplement because Plan F is no longer available to new enrollees — Plan G covers everything except the Part B deductible ($257/year).
- Medicare Advantage $0-premium plans are not free — you pay through copays and restricted networks. High-utilization patients often spend more total than with Medigap.
- IRMAA uses income from 2 years ago — a Roth conversion or capital gain in 2024 affects your 2026 Medicare premiums. Plan withdrawals to avoid crossing IRMAA thresholds.
- Enroll in Medigap during your open enrollment period (first 6 months on Part B) — insurers must accept you regardless of health. After this window, they can deny or surcharge based on health.
- If you are still working at 65 with employer coverage, you may delay Medicare without penalty — but understand the coordination rules to avoid gaps.