Medigap Plans
There are several private Insurance companies that offer Medigap Plans. These plans are lettered A – N, and were created to cover out-of-pocket expenses found in Medicare. Medigap Plans are what is called “Standardized”. For example, if an insurance company is offering Plan F it is the same coverage as all other Plan F’s offered by other companies. Because the coverage is the same between companies you only need to see which plan letter is best for you. Our medigap insurance agents will walk you through each plan letter and explain which Medigap Plans are best for you. We’ll also see which insurance company is the top provider based on their financial stability and their plan rates.
Pricing of Medigap Plans
We keep a daily watch on all of the major insurance companies. While all the Medigap Plans are the same, insurance companies all have different rates. Therefore you could end up paying a lot more for the exact same coverage. By working with one of our Agents we’ll make sure that you get the best plan at the best rate that you qualify for.
You are required to have Medicare Part A and B in order to buy Medicare Supplement Plans. Along with the Medicare Part B premium, you must also pay the monthly rate for a supplement. Medigap Plans are 100% renewable unless you fail to pay the monthly premium. When to enroll in a plan is key as there are “open enrollment” or “guaranteed issue” periods. During this time, an insurance company is obligated to offer you a Medigap Plan despite any health-related problems with no questions asked.
Medigap Plans If you are Under 65 Years
If you receive Medicare because of a disability and are younger than 65 years, you have a guaranteed issue period of 6 months from the time you enroll in Part B Medicare. You may enroll in a Medicare Supplement, however, your plan options will be determined by the state where you live in. Once you reach 65 years, you may choose from any of the Medigap Plans available and are guaranteed enrollment for a 6 month window.
Insurance companies may charge higher monthly rates for someone who is under 65 because there are no rate restrictions. This is why it is so important to shop the market for the best Medigap Plans available at the best price. Let one of our Agents sort through all of your options to find the right plan with the lowest rates for you!
Medigap Plans If you are 65 Years or Over
If you are 65 years or older and qualify for Medicare, you have a 6 month window where you may select the Medigap Policy of your choice regardless of any health problems.
Keep in mind, the 6 month period begins on the same day your Medicare Part B coverage goes into effect. Many of insurance companies allow you to submit your application six months prior to this date to make sure your Medicare Supplement starts at the same time as your Medicare Part B.
How Medigap Plans are priced
There are three different ways that Medicare Supplements are rated and priced by insurance companies.
Community-Rated
These plans are offered by various companies and have a unique pricing structure in which everyone obtains a Medigap policy for the same premium. These plans still do have rate increases based on inflation.
Issue-Age
When entering Issue-Age Medigap Plans the you are basically locking in a rate based on the age you are when obtaining the policy. Although the rates will not raise each year because you are older, they often begin higher and still have increases based on inflationary factors. People often believe that they can enter one of these Medigap Plans and maintain the same rate for life, which is absolutely not the case.
Attained-Age
These are by far the most popular medigap plans and typically begin with the lowest premiums. These Medigap Plans have a rate increase each year as you get older, and as mentioned above premium can vary widely from company to company. Therefore it’s wise to have one of our Medigap advisors shop the market year-after-year to find which Medigap Plans have the very best premiums for you.
If you currently have Medicare and have yet to turn 65 years old, your 6 month guaranteed issue period will begin on your 65th birthday. Even if you presently have a supplement it is highly recommended that we still shop the market and find which of the Medigap Plans available will save you the most money.
