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Are you turning 65 soon? Don’t overlook these guidelines when signing up for Medigap.   

Medicare Supplement Cost

by: Leandro Mueller

Monthly premiums apply for Medigap policies. This is on top of the monthly Part B premium you pay for. Since policies are offered through private insurers, costs of each plan may differ from each provider. Regardless of the Medicare supplement cost, the same coverage will still be given for the purchased plan.

To illustrate this further:

Insurer A from Boston: Medigap Plan D = $100

Insurer B from Oklahoma: Medigap Plan D = $110

Plan D still offers same coverage, regardless of location.

 

How Companies Set Medigap Cost

Private insurance companies use different rating systems to set Medicare Supplement cost.

 

Community-Rated

Policyholders, regardless of their age, are each charged the same monthly premium rate. Rates in this system will not increase as a beneficiary ages. However, inflation may allow monthly premiums to increase over time.

 

Issue-Age-Rated

Monthly premiums will be based on the age a beneficiary first enrolls for a Medigap policy. As such, the younger an applicant is, the lower the premium may be. Medicare supplement rates in this system will not increase as a beneficiary ages. However, inflation may allow monthly premiums to increase over time.

 

Attained-Age-Rated

Monthly premiums will be based on the beneficiary’s current age. As such, the younger an applicant is, the lower the premium may be. Monthly premiums are subject to increases over time.