Across the country, Medigap plans are standardized, but the cost structure of Medigap is not standardized. Sometimes there could be huge variations in the premium for the same pension plan. This is because every insurance company decides the price structures for their different policies.
In general, these are the main categories of plans:
- Attained- Age Policy: With this policy, premiums start at a much lower price than the other two. However, their costs increase every three to five years – sometimes even faster. In later years, it could be a lot more expensive than the other options. It can also be harder for you to switch policies because of the rising monthly premiums.
- Issue-age policies: Here the price of the premium depends on your age at the time of purchase. The lower your age, the lower your premium Medigap costs. This policy is not subject to any increases with the age of the beneficiary.
- Community-related Plan: It is similar to the issue-age policy as the costs are the same for all members of a given community regardless of age. Even the premiums do not increase as you get older.
- 2020 supplement quotes at https://www.medicaresupplementplans2020.com/
The age and community policies start with higher premiums than the retirement pension policy, but the long-term advantage is that they do not experience price increases due to age.
There are other factors that also affect the Medigap cost. Healthcare inflation is an example. Inflation is almost inevitable and affects all types of insurance policies. Other factors that influence premium costs include the results of your medical risk assessment, geographic location, and any available discounts. In addition, registering for a policy during the six-month open registration may be more cost-effective as you have more choices and the insurer cannot refuse cover for you due to health issues or for an additional fee.
In order to get the best plan, it is advisable that you look around and explore the options available. First determine which coverage you want. Your National Insurance Office can give you a list of insurance premiums. Alternatively, you can browse the personal plan finder on Medicare’s websites or purchase a copy of the Weiss Ratings Supplement Insurance ‘Shoppers’ Guide.
Next, make sure you understand the pricing structure of each insurance company. Keep in mind that superior plans offer more benefits, but your Medigap costs will be higher. You should also compare the acquisition cost with the long-term cost. In general, we recommend that you choose an issue or community-based policy. It may be more expensive initially, but at least you can lock the premium so that it does not increase with your age.
In terms of community-related or issue-age policies, it is better to go with their cheapest package as you will not always get good value for money with the higher priced ones.
The author’s cost for a Plan F Medigap Police was $ 145 as at the year 2013. Plan F is a good cover and should protect your savings if you have a long-term illness.