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How To Compare Medicare Supplement (Medigap) Cost

by MarkG

Comparing Cost

While Medicare covers most treatments at 80%, there are some gaps that patients struggle to fill. This is where Medicare Supplement Plans ( Medigap ) come in. These plans vary in cost and coverage by insurance company and state, so it’s important to shop around before committing to one choice. Here’s what you need to know about Medicare Supplement rates and the various plans that come with them.

What Is Medicare Supplement Insurance?

Medicare Supplement Insurance — also known as Medigap — is sold by private companies to help offset the costs of Original Medicare.

Medicare pays for its share of the treatment, and then Medigap will fill in and cover its share. While it can significantly help offset the costs of treatment, it won’t always cover your costs completely. There are a few things to know about Medigap policies:

  • You must have Medicare Parts A and B
  • Medigap only covers one person, which means you and your spouse will have to buy separate policies.
  • Most Medigap Plans give household discounts.
  • If you have a Medicare Advantage Plan, make sure you can leave it before your Medigap policy begins. It is also illegal for someone to sell you a Medigap policy if you have a Medicare Medical Savings Account (MSA) Plan.

You will pay the private insurance company a monthly premium along with your Part B premium. Medigap policies are automatically renewable regardless of health conditions.

How Can You Compare Medicare Supplement Plans?

All policies follow state and federal guidelines and they offer the same basic benefits. The difference from one carrier to the next is the monthly premium. These can vary greatly.

When reviewing these plans, choose a few areas that you must have covered and a few that you would like to have covered. For example, if you never leave the country, then you might not need foreign travel coverage. This will help you prioritize the plans and determine which coverage and providers you should choose.

What Is The Cost Of A Medicare Supplement Plan?

Medicare Supplement Plan costs vary greatly from person to person and state to state. However, it is possible to explain the various types of pricing that you will experience during your search.

  • Community-rated pricing (also called No-Age-Rated) means everyone pays the same price regardless of age. The premiums may fluctuate annually because of other factors such as inflation, but someone who is 65 and someone who is 78 will pay the same amount.
  • Issue-Age-rated pricing is based on the age of the applicant. While the premiums are lower for younger buyers, they won’t change as the customers get older.
  • Attain-Age-rated pricing is when the premium is based on your current age but goes up as you get older. As with the first two types, the premiums can also increase for other reasons as well.

For the most part, any given geographic area will have one or two of these pricing models. Be sure to ask your licensed agent which types of plans exist in your area.

Finding the right Medicare Supplement Plan might seem confusing at first, but the more you research your options and become familiar with various plan-related terms, the more you will be able to find the best coverage for your needs. By thinking about your expenses and coverage in the long run, you will set yourself up for health plan success throughout your retirement. You can always reach us with questions by dialing 1-800-708-5810 or email us at [email protected]

 

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