Medigap benefits are standardized. Regardless of the insurer or policy itself, everyone gets the same coverage. But – not everyone pays the same monthly premiums. How your insurance company assigns premium payments can be based on your age, how you pay for your premiums, the type of Medigap policy it sells, as well as whether your policy uses medical underwriting.
How does age affect premiums?
There are three ways in which the policies are rated. Only one of these is priced independent of age.
The first is community-rated. Age does not decide how much you pay in premiums, which is why this is also referred to as “no age-rated”. While age does not impact what you pay each month, other factors such as inflation do.
Issue age-rated, also known as entry age-rated, prices premiums according to your age when you sign up for Medigap. Like other insurance policies, the younger you are, the less you’ll pay. This is the amount you will pay for the rest of the time you hold the policy. However, premiums can go up for the same reasons as a community-rated policy.
Attained age-rated policies have progressively higher premiums as you get older. This policy is initially the most inexpensive of the three. But as time goes on, it becomes the opposite, making it the highest-priced in the long-term. And much like the other two policy types, premiums can increase for reasons unrelated to age.
Are there differences specific to the Medigap Plans themselves?
Yes. What your insurance company offers has a direct effect on how much you pay every month.
You’re not just paying based on age, but how the policy itself functions. If your insurer sells Medicare SELECT, your premiums are going to be cheaper because your policy only pays for your care if you see a select group of medical providers. This is unique from the majority of Medigap plans, as most Medigap plans cover you for any treatment from providers who accept Medicare.
The price also depends on if your plan has a deductible. For example, if you got the high deductible version of Plan F or G, your coverage won’t start until you meet the $2,340 deductible.
Your plan may also have medical underwriting, where your health situation can result in waiting periods and higher premiums if you are in poor condition.
How can I save on costs?
Some policies offset higher costs with discounts.
Companies offer discounts for reasons such as:
- Being a non-smoker, married, or female
- Paying annual premiums
- Making payments electronically
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Turning 65 Solutions makes Medigap understandable and easy. We lay out the facts and find you a policy that works to your greatest advantage. All you have to do is call us today at 830-217-6711 to get started.