Can you explain the “estimated annual cost” for a Medigap policy?

The Medicare Plan Finder offers information about the types of Medigap policies available by zip code.

In the policy summary, the second column is “Estimated Annual Cost.” This is generic information, taking into consideration the policy premium and typical costs for an individual with good, fair, or poor health status.  

Costs for an individual begin with the premium. Find a package of benefits that meets your needs and then contact some agents who represent plans of that type. Beyond that, costs depend on utilization of services. For example, will there be hospitalizations, visits to specialists, or outpatient therapy?