Medigap Insurance Premiums
2014 Medicare and Medigap Updates
Medigap Insurance Premiums
Any discussion on healthcare for retired citizens must ultimately come down to Medigap insurance premiums. Let’s face it: the shortcomings of basic Medicare does not necessarily stimulate confidence and security among seniors who are suffering from a variety of medical conditions. Consequently, many turn to Medigap insurance premiums to be able to bridge their medical needs.
The price of Medigap insurance premiums depend on the exact policy that a specific senior is interested in. Subsequently, the nature of the coverage combined with many factors such as location, the pricing schemes adopted by the healthcare agency for that plan, and the smoking habits of the policy applicants, among other things, determine the final value of the premium on offer.
The pricing schemes used by healthcare providers can be classified into three groups: community rated, age rated, and age attained rated.
· Community rated plans are priced irrespective of the age of the policy buyer. Instead, it is calculated based on the prevailing economic conditions and implemented uniformly across all policy applications.
· Age rated plans, on the other hand, are strongly based on the age of the policy applicant. A potential policy owner 65 years of age will be charged lower than a 68 year old applicant for the same plan.
· Age attained rated polices base all Medigap insurance premiums on age, first, and then vary the price as the applicant ages. At age 65, a plan may cost $1,200 per year whereas a year later, the plan might cost $1,250.
The most important consideration with Medigap policies is that next to coverage, Medigap insurance premiums are essentially the most important consideration for policy owners. First, a senior has to determine which plans they need to buy depending on their specific needs. Afterwards, potential policy owners request quotes from healthcare agencies for their plan of choice.
To get the best Medigap insurance premiums from a quote perspective, there are a variety of options available to customers.
· Some internet sites specialize in giving an estimate of quotes within a specific area. If you live in, say, Kansas City, you can visit internet sites that in turn give you a list containing 10 or more agencies that offer a Plan B and how much each plan costs from that insurer.
· You can also go directly to these agencies as a walk-in and inquire from healthcare agents.
· Lastly, you can ask your local Medigap counselor for advice on the best-priced plans available.
Remember that there is no need to buy expensive Medigap insurance premiums where cheaper alternatives with the same coverage are available. Make sure to do the necessary research prior to picking a specific plan from a specific provider so you can save on your Medigap insurance premiums cost.