One of the easiest savings available in Medicare goes unmentioned in most broker conversations and is absent from virtually every comparison website. Several major Medigap carriers offer a household discount, typically ranging from 5% to 15%, when two individuals living in the same household both enroll in Medigap plans with the same insurer. For couples where both spouses are on Medicare, this discount can save several hundred dollars per year, every year, with no change to coverage whatsoever.
I ask about household status on every call with a married couple approaching 65. Half of them have never heard of the household discount. The carriers do not advertise it proactively and most online comparison tools do not surface it. If both of you are going onto Medigap, the carrier you pick matters partly because of this discount. Let me check which ones offer it in your zip code.
How the household discount works
The discount applies when two people at the same address enroll in Medigap plans from the same carrier. The most common scenario is a married couple where both spouses are on Medicare. Some carriers extend eligibility to domestic partners or other adults living at the same permanent address. The discount is typically 7%, applied to one or both enrollees' premiums depending on the carrier's rules. A few carriers offer the discount only if both people apply together during the same enrollment period; others offer it when the second household member joins an existing policyholder.
How much it saves
On a Plan G premium of $140 per month, a 7% household discount saves $9.80 per month, or $117.60 per year. If both spouses receive the discount, combined savings reach $235.20 annually. Over a decade, that is $2,352, from a discount that requires no change in coverage, no different plan, and no additional conditions. The savings grow as base premiums increase over time since the percentage discount applies to the current premium.
Which carriers offer it
Not every Medigap carrier offers a household discount, and the terms vary. Several national carriers including Mutual of Omaha, Cigna, Anthem, Aetna, and Humana offer household discounts in many states, though availability varies by state. Many regional and smaller carriers also offer the discount. The only way to confirm availability and terms is to ask specifically. Brokers who shop multiple carriers can identify which ones offer the discount in your zip code for your specific plan.
When to apply for it
The most straightforward time is when both household members enroll in Medigap simultaneously, during their respective open enrollment periods. Both applications go to the same carrier, and the discount applies from the start. If one spouse already has Medigap and the other is approaching 65, ask the current carrier whether adding a new household member triggers the discount retroactively or going forward. Some carriers adjust the existing policyholder's premium down immediately when a second household member enrolls.
Want to know which carriers offer the household discount in your area?
This is exactly the kind of detail that a comparison website will not surface for you. I can identify which carriers offer the discount in your zip code and whether your household qualifies.
Book a Free CallThe trade-off to consider
The household discount creates a mild dependency on staying with the same carrier. If one spouse wants to switch carriers later due to a rate increase, the remaining spouse loses their discount, which may offset some of the premium savings from switching. Factor this into long-term planning. In states where Medigap carriers use age-based or attained-age rating (where premiums rise as you age), the household discount helps offset annual increases but does not eliminate them.
Frequently asked questions