2014 Medicare and Medigap Updates
The search for the right supplemental Medigap policy is one of the most important decisions that one can take personally. Picking the right policy in terms of both coverage and price can make or break you in a number of ways. Therefore, it is extremely important to pay careful consideration to your needs and paying capabilities so you are always in the right position to pick a policy that’s right for you. For this reason, being keenly aware of Medigap prices in the state where you are will put you in the best position of knowing what your options are.
Companies follow three standard methods to determine Medigap prices in most states. These are issue-age rated, community rated, and attained-age rated policy premium pricing.
Issue-age rated Medigap prices base the price of the premium on the age of the policy owner at the time the policy was bought. Medigap prices do not normally change as you get older so people who buy their policies at a younger age pay lower yearly fees than those who buy their policies when they are older. Seniors who only chose to purchase their Medigap plans later in life should stay away from issue-age rated policies because there is a greater likelihood that these premiums will present the most expensive plans for them.
Community rated policies, on the other hand, are not based on age but rather the prevailing community price for that year. Policy owners of different ages are charged the same rate regardless, which makes it an advantageous policy for seniors to purchase.
Medigap prices offered using the community rated methodology are the most advantageous for seniors who only chose to buy their plans later in life while it presents the most expensive plans for younger policy owners looking to purchase plans early on. It follows that young people who are looking to save money from their Medigap premiums should stay away from this pricing method and instead seen issue-age rated Medigap prices on the market.
The third pricing methodology is called attained-age rated and Medigap prices vary every year as the policy owner ages. Younger policy owners will pay lower-priced premiums which continue to increase in price as each year passes. Prices might also be adjusted for inflation over time so there will be years when the pricing increase is higher than in other years.
There are also conditions that help to influence the price of offered premiums by many healthcare companies. Medigap prices also take into account whether a policy owner smokes, lives in a rural area, or even in the state where the policy is offered. It is important to inquire the availability of these discounts so you can further drive down Medigap prices.
Looking for the cheapest Medigap prices for any specific plan that you feel is suited for your needs should rank high on your list of personal priorities. The need to have a supplemental Medigap policy is non-negotiable and with the increasing prices of healthcare insurance, finding the most affordable is one important consideration that should be looked for without sparing any expense.
Though they are issued through private companies, Medigap policies are regulated by the government you will recieve the same coverage on a plan regardless of the price. For this reason it is good to shop around for the best Medigap prices.