Medigap Supplement Insurance Costs
Medigap helps pay your Part B bills
In most Medigap policies, the Medigap insurance company will get your Part B claim information directly from Medicare. Then, they pay the doctor directly. Some Medigap insurance companies also provide this service for Part A claims.
If your Medigap insurance company doesn't provide this service, ask your doctors if they "participate" in Medicare. This means that they "accept assignment" for all Medicare patients. If your doctor participates, the Medigap insurance company is required to pay the doctor directly if you request it.
Compare the costs of Medigap plans
Insurance companies may charge different premiums for the same exact supplement policy benefits. As you shop for a policy, be sure you're comparing the same policy. For example, compare Plan A from one company with Plan A from another company.
In certain Florida counties, Medicare beneficiaries may be able to buy another type of Medigap policy called Medicare Select. If seniors buy a Medicare SELECT policy, they have the right to change their mind within 12 months and switch to a standard Medigap policy.
Costs of Medigap policies
Each insurance company decides how it will set the price, or premium, for its Medigap policies. It’s important to ask how an insurance company prices its policies. The way they set the price affects how much you pay now and in the future.
Medigap policies can be priced or "rated" in 3 ways:| Example |
| Mr. Smith is age 65. He buys a Medigap
policy in Florida and pays a $165 monthly
premium. Mrs. Perez is 72. She buys the same Medigap policy as Mr. Smith. She also pays a $165 monthly premium because, with this type of Medigap policy, everyone pays the same price regardless of age. |
The supplement premium is based on the age you are when you buy (when you're "issued") the Medigap policy.
| Example |
| Mr. Han is age 65. He buys a Medigap policy
and pays a $145 monthly premium. Mrs. Wright
is 72. She buys the same Medigap policy as Mr. Han. Since she’s older when she buys it, her monthly premium is $175. |
The premium is based on your current age (the age you have "attained"), so your premium goes up as you get older.
What this pricing may mean for youPremiums are low for younger buyers, but go up as you get older. They may be the least expensive at first, but they can eventually become the most expensive. Premiums may also go up because of inflation and other factors.
| Example |
Mrs. Anderson is 65. She buys a Medigap
policy and pays a $120 monthly premium. Her
premium will go up each year.
Mr. Dodd is 72. He buys the same Medigap policy as Mrs. Anderson. He pays a $165 monthly premium. His premium is higher than Mrs. Anderson’s because it’s based on his current age. Mr. Dodd’s premium will go up every year.
|
| Note |
| The cost of Medigap policies in Florida can vary widely. There can be big differences in the premiums that different insurance companies charge for exactly the same coverage. |
As you shop for a Medigap policy, be sure to compare the same type of Medigap policy, and consider the type of pricing used. For example, compare a Medigap Plan G from one insurance company with a Medigap Plan G from another insurance company.
The cost of your Medigap policy may also depend on whether the insurance company:
- Offers discounts (like discounts for women, non-smokers, or married people; discounts for paying yearly; discounts for paying your Medigap premiums using electronic funds transfer (automatic payment from checking account or credit card); or discounts for multiple policies).
- Sells Medicare Select policies that may require you to use certain providers. If you buy this type of Medigap policy, your premium may be less.
- Offers a “high-deductible option” for Plans F or G. If you buy Plans F or G with a high-deductible option, you must pay the first $2,340 of deductibles, copayments, and coinsurance not paid by Medicare before the Medigap policy pays anything. You must also pay a separate deductible ($250 per year) for foreign travel emergency services.
- If you bought your Medigap Plan J before January 1, 2006, and it still covers prescription drugs, you would also pay a separate deductible ($250 per year) for prescription drugs covered by the Medigap policy. And, if you have a Plan J with a high deductible option, you must pay the first $2,340 before the policy pays anything.