Medigap plan rates are affected by a few factors. We suggest when choosing a Medigap plan to choose the most comprehensive plan you can afford, while at the same time figuring out how your Medigap provider offers its rates.
Medigap Plans
Medigap, also known as Medicare Supplement plans, were designed to fill in the gaps that Medicare leaves open. Every Medicare beneficiary has a right by law to purchase these plans. Medigap plans range from basic to comprehensive coverage, but all cover extended hospital stays up to 365 days. Click here to learn more about Medigap
Medigap Premium Rates
There are three ways Medigap premiums can be rated:
1) Issue-age Rated
This Medigap rate is based on the age you are at the time you enroll in a plan. Once you enroll in this plan your premium does not go up on your age, however the premiums do increase with inflation.
2) Attained-Age Rated
This is different than issue-age rated, in that if you enroll in a plan with with this type of premium your plan goes up with age and with inflation.
3) Community Rated
This type of plan charges everyone the same regardless of age. This plan only goes up with inflation.
Which Medigap Rated Plan Should You Choose?
While it may seem that there is a big discrepancy between the three types of Medigap rated plans, there really isn’t. Each type of plan increases its premium over time, so honestly the most important part of picking a Medicare Supplement plan is to choose one that meets your monthly budget now and over time, as well as, gives you enough financial protection in case of serious illness or emergency.
Other Factors that Affect Medigap rates
Geographical rating: Charging different geographic areas different prices
Medical underwriting: Charging different prices based on health history
Discounts: Charging less based on being a woman or a non-smoker, for example
To learn more about Medigap rates call the number above or click here to get a Medigap quote.