Medicare Part A and Part B cover the majority of health care costs, but there are certain gaps in coverage that Medigap plans can fill. The cost of these policies varies greatly depending on the plan chosen and how much the policy covers. A plan with more coverage typically has higher monthly premiums than a less comprehensive option.
Purchasing a Medicare Supplement plan during your open enrollment period is the best way to get the most affordable policy possible. This six-month window begins when you turn 65, enroll in Medicare Part B, and are automatically enrolled in a Medigap plan. Enrolling outside of this window will require the insurance company to conduct medical underwriting before they can issue a policy and you could end up paying higher monthly premiums for your policy as a result.
If you are currently enrolled in a group retiree Medigap plan provided by your employer, you may wish to continue with this type of coverage. However, you should compare your group plan’s pricing with the ten standardized Medigap policies to ensure you are receiving the most affordable option for your needs.
The specific way that an insurer sets their premium Medigap Plans Cost pricing can also vary greatly from one carrier to the next. Some policies are community-rated, meaning that the same monthly premium is charged to everyone who has the same coverage. Other policies are issue age-rated, which determines your premium based on your age at the time of purchase. The premium for this type of policy won’t go up due to inflation, but it will increase as you grow older.
Your location can also have a major impact on your monthly Medigap policy cost. For example, premiums in metropolitan areas tend to be higher than in rural areas. Your sex and gender are also important factors in your Medigap plan cost, with women paying lower premiums than men on average.
While premiums are an important factor to consider, it is also essential to remember that your Medigap plan will not be cancelled if you fail to pay your monthly premium. The only circumstance in which your Medigap policy could be cancelled is if you are found to have lied on your application, which is very rare.
Once you’ve compared the benefits and costs of various Medigap policies, it is likely that you will choose a plan to suit your needs. Choosing to add on a high-deductible plan such as Plan F can be an excellent strategy for saving money on your monthly premiums, but make sure you are prepared to meet the high out-of-pocket expenses associated with this type of policy. You should also review the stability of your insurer and any discounts they offer for their policies. For instance, some companies will offer household discounts for couples who select the same Medigap policy. Lastly, remember that you can switch between different plans at any time if you find your premiums are too expensive for the amount of coverage you receive.