Medicare Supplements: Simplified
Great River Insurance Group
What are Medicare Supplements?
Prior to 2003, the only way to add coverage to Original Medicare was through purchasing Medicare Supplements. These are otherwise known as Medigap Policies. Medicare Supplement policies always pay second to Original Medicare. Meaning they will only pay on a claim when Original Medicare pays first.
Unlike Advantage plans, Supplements do not require you to stay within a network of doctors. However, you must pay a monthly premium to keep your coverage. If you are new to Medicare, you can join any Medicare supplement you’d like. They can not ask about your health. However, if you decide to switch to a different Medicare supplement, you may be made to answer to medical underwriting. This means that if you have certain pre-existing conditions, they can reject your application or charge you a higher rate.
A Medicare Supplement policy does not include prescription drug coverage. So you will need to also join a stand-alone Part D plan to cover your prescriptions. Even if you don’t have any prescriptions now, you will need to enroll in a Part D plan to avoid penalties later (or risk a part D penalty).
Schedule a consultation with us today to discuss whether or not a Medicare Supplement policy could benefit you. Contact us today for a consultation.
Plan Letters vs Carriers
Medigap policies are sold by private insurance companies. The government, however, mandates what each medicare supplement plan covers. Each plans are identified by a plan letter. Anyone on Medicare since before January 1, 2020 may enroll in a plan F. Plan F works in such a way that it pays for everything that original Medicare leaves you. Meaning, if you go to the doctor or hospital, you will have no out-of-pocket cost. You must only pay your monthly premium. It doesn’t matter which carrier you buy your plan F from, they will all cover you the same.
The main difference is in the monthly premiums they charge. Every company calculates risk differently and charges premiums accordingly. Meaning, for one person Company A might be the lowest price. But for their neighbor, it might be Company B.
Pricing Medicare Supplements
Insurance carriers base your monthly premium rate on one of these three factors. Attained Age, Issued Age or Community Rated. Although the price of a Medicare Supplement will rise each year, understanding how your rating type affects this is important.
When turning 65, insurance companies price Attained Age policies the lowest. However, as you age they will go up the most each year. This is because they rate your premium based on your current age. Issued Age policies are generally higher per month when you first sign up for a plan. If you stay on it long enough, however, your price will stay well below those with other rating types.
Finally, Community Rated plans are generally in the middle. They cost more when you’re turning 65 than an Attained Age, but less than an Issue Age. However, as you get older, and if you decide to switch plans, a Community Rated policy usually would end up costing the least.
There is a lot to consider when selecting a Medigap Plan. Although a good amount has been explained, there are a lot more things to consider. Schedule a consultation today or get a quick quote below.
Quick & Simple Medigap Quote
Although not included in the quick quote below, most insurance companies offer discounts. You can give Benjamin a call at (855) 982-6525 in order to see if you qualify for one of the many discounted rates available.
Get a Personal Consultation
Benjamin Thompson of Great River Insurance Group will be your guide through Medicare. Although this all may seem complex, our mission here is to both simplify things and to inform you of your options. We offer a range of choices tailored to both your health needs and financial situation. Our priority here simple. We want see you in a position to have everything you need. And never having to give a second though to your Medicare coverage.
Are you interested in learning more about your current coverage options? Or maybe you’d just like a second opinion. We’re here to help. Schedule a consultation today!
¹HealthAlliance & BlueCross BlueShield of Illinois plan options are listed separately.