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This paper examines premium growth between 1998 and 2000 for Medigap insurance coverage. Weiss Ratings, Inc. (2001) reported that between 1998 and 2000, premiums for plans that cover prescription drugs increased 37.2%, while premiums for plans without prescription benefits increased 15.5%. However, the computation of average premiums did not take into account the market share of the insurers. This paper weights premium growth by Medigap plan enrollment to account for market share. Medigap premiums increased faster for plans with a prescription drug benefit, but the difference was much smaller than previously reported. For enrollees age 75, premiums for non-prescription plans increased 15.2% while premiums for prescription plans rose 19.6%. Large premium increases tended to occur with smaller insurers, limiting the impact on the premiums paid by beneficiaries. [ABSTRACT FROM AUTHOR]