2014 Medicare and Medigap Updates
One of the most powerful tools at your disposal in terms of searching for a suitable healthcare plan is a Medigap quote. Remember that while the coverage for Medigap plans of the same name offered by various companies are the same, the price can drastically vary based on a number of factors. In truth, it is very hard to predict what you’re going to see on any Medigap quote because the industry is ever dynamic and adapting to changing conditions. However, at the end of the day, it will boil down to cost and this is where you have the most advantage.
As a policy buyer, you first need to gain a little understanding of the pricing schemes implemented by companies for Medigap plans. Namely, these are community-rated, age-rated and age attained-rated. The first refers to plans that are priced regardless of the age of the policy buyer while the second refers to the opposite and is heavily dependent on how old you are when you purchase the plan. The third is still age related but premium pricing differs on a yearly basis as a customer gets older.
Each of these types of plans has corresponding pros and cons in terms of pricing for specific people. For example, if you are an older customer, you would want to stay away from the age-rated plans because they tend to be pricier for you. Conversely, you want to start looking at community rated plans where prices are calculated for every policy buyer for that period. This means that your premium gets “diluted” by the whole pool of customers looking to buy Medigap policies for that period; hence, lower premiums.
But suppose you do not have any idea concerning the pricing policies implemented by healthcare agencies; how do you go about choosing the best premium prices? This is where a Medigap quote comes in handy. In simple terms, a Medigap quote refers to the official price that a company is “offering” or “tendering” to you for a specific package. It’s an official offer complete with details of the price that you will have to agree to pay to avail of the plan.
So how can you put this Medigap quote to good use? You can put a good Medigap quote to its best use as leverage when dealing with many healthcare agencies. Simply put, if you have a quote from one agency, you can show it around to other agencies and try to bargain if they can further lower their asking price. In general, the competitive nature of the market will push down prices especially in much coveted plans. If you are buying Medigap Plan A, premium discounts are harder to come by because they are more common and more people buy them, but with big coverage plans like Plan M and Plan N, you can drive a better bargain and expect to get better chances of return.
So remember that a Medigap quote is not just an offer from a company but rather a tool that you can use to tell other companies how much you are expecting to pay and what you expect from them if they want to have a chance in dealing with you, then they need to offer a lower price. This should give you the best chance of buying the best plan for the lowest possible price.
Also, never forget that Medigap plan are regulated by the government and each plan's coverage will be exactly the same regardless of who you but from or what price you pay. You can get a Medigap quote from your local insurance companies or over the internet.