Cost of Medicare Supplement Insurance

2014 Medicare and Medigap Updates

Cost of Medicare Supplement Insurance

The cost of Medicare supplement insurance is one of the most important things you will need to consider when selecting which supplemental health insurance you would like to purchase. Because of federal regulations that explicitly define the coverage of Medicare supplemental plans, insurance providers resort to competitive pricing in order to attract new policy owners. As a savvy consumer, you can use this to your advantage by closely considering the cost in your selection of the best supplemental insurance policy.

To understand this, you will need to embrace the pricing schemes used by policy providers in calculating the price of a specific plan. Suppose you plan to purchase Medigap Plan C. The first thing you will need to do is to compile a handy list of Plan C offers from multiple providers taking careful note that the cost of Medicare supplement insurance has to be explicitly stated in the offers. Alternatively, you can also call the State Health Insurance Assistance Program to get an idea of the price range for a Plan C supplemental medical insurance in your area.

Now, you are ready to compare the cost of Medicare supplement insurance to find the best one for you. A common pitfall here is that would-be policy owners only look at the premium they are expected to pay in Year 1 without taking the time to assess how the premium price changes in succeeding years. Remember, supplemental health insurance providers use one of three pricing schemes to calculate the premium.

In community-rated policies, the same monthly premium is charged to every person who owns that specific policy. It is not tied to the age of the policy owner but only to other factors such as inflation. This type of policy also, in general, keeps the cost of Medicare supplement insurance fairly constant across the life of the policy. For comparison purposes, let’s suppose that Plan C in community-rated policies costs $170 per month.

In issue-age rated policies, the premium that you will pay depends on your age at the time you secured the policy. These policies also relatively remain constantly priced over the life of the policy with few price adjustments for inflation. The typical Plan C offer for would-be policy holders who are 65 years of age costs around $160 but if you purchase this plan when you are already 70, you are likely going to be charged $190 per month.

In age-attained rated policies, the price of the premium goes up every year as you also grow older. The cost of Medicare supplement insurance with this price scheme is typically lower than the two pricing schemes for the same starting age. You will find Plan C policies that cost $135 for a 65-year old policy holder but the price jumps to $145 the succeeding year, and so on.

Once you have identified the specific coverage that you need, make sure you take the time to analyze the cost of Medicare supplement insurance according to these considerations to find the one that’s most favorable for you. Likewise, take note of potential conditions that may lead to exemptions. By using this strategy, you can be assured of netting the best cost of Medicare supplement insurance for yourself or for a loved one so you can get access to medical services without having to empty your wallet solely for that purpose.

On a final note, always remember that each Medicare supplement insurance plan will have the exact same coverage as any other plan regardless of the company you purchase it from. For instance, if you purchase a plan C from one company, a plan C policy from any other company will have the same coverage. For this reason, it is always a good idea to compare cost of Medicare supplement insurance from company to company.