Average Cost of Medicare Supplemental Insurance

2014 Medicare and Medigap Updates

Average Cost of Medicare Supplemental Insurance

The truth is that it is very hard to give one definitive figure as to the average cost of Medicare supplemental insurance. First, there are a lot of factors that can cause supplemental insurance prices to vary from one customer to the next and from one state to the next. Second, the prices will possibly change on an annual basis depending on the exact nature of the plan that you are securing. For these reasons it is hard to define the average cost of Medicare supplemental insurance, without first doing a little research.

However, it helps to have sufficient knowledge on the basics as these can go a long way into helping you formulate the right decisions when selecting the Medicare supplemental insurance that’s good for you. Likewise, understanding these basics can help you make sense of the average cost of Medicare supplemental insurance as advertised by many providers.

You probably already know that there are several types of supplemental insurance plans that are offered. Each of these plans differs in extent, scope, coverage, and co-payment conditions and therefore the price for each also differs considerably. As expected, more extensive plans cost more than basic supplemental insurance plans so understanding your exact needs and matching these to the offers will help you in maximizing the value of the plan that you eventually select.

Understanding the pricing methods adopted by the providers on your list will also help you understand their average cost of Medical supplemental insurance. There are typically three pricing methods that are being used: age-rated, community rated, and attained-age rated. The prices that you pay increase depending on the exact pricing method in use. Some plans may seem cheaper outright but over time these may cause you to spend more. Conversely, other plans may seem expensive today but over time the plan might eventually lead you to spending a lower total sum on your supplemental medical insurance.

Likewise, some factors help determine whether you get discounts or not on the plans that you have in mind. For example, there are discounts for non-smokers, females, and individuals who are married. Automatic debit payments also get a discount from selected providers and taking advantage of these offers can help you further cut down on your average cost of Medicare supplemental insurance.

In general, 2012 data shows that the average cost of Medical supplemental insurance for the most basic plans is somewhere in the neighborhood of $130 to $210 per month while the most expensive plans can go as high as $400 per month. Likewise, estimates put the annual payment increase to be 5 to 6%. This dictates the eventual total cost of the plan over the lifetime of the policy.

The wide average cost of Medicare supplemental insurance should tell you that more effort has to be placed on selecting the best plan for you so you can maximize your spending without having to compromise on health expenses which is of paramount importance in today’s society.

Medicare supplement insurance is known as Medigap and it is government regulated. Our site has a huge amount of information on Medigap cost and we hope this article on the average cost of Medicare supplement insurance has been helpful.