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Choosing a Medigap policy is not something to be taken lightly. Making an uninformed decision could negatively impact you financially as well as prevent you from getting the coverage you need in the future. In the world of Medicare, it’s easy to get lost in health insurance jargon, plan pricing, and available coverages. Below, we’re going to go over what you need to know to make an educated decision when choosing a Medigap policy in 2020.
Things to Consider When Choosing a Medigap Policy in 2020
Each state sets rules governing health plans; because of this, the laws are similar for all insurance companies. Important points to keep in mind when choosing your Medigap policy:
- You should obtain both Part A and Part B
- You must be a resident of the state that’s offering the plan
- If you want to get a Medigap policy, you must drop your Medicare Advantage plan
- Each spouse must obtain a separate policy as the program doesn’t cover spouses
- You will need to enroll in a Part D plan
- You must pay Part B and Medigap monthly premiums
- All Plans are subject to renewal
Consider your Current and Future Health
A factor in choosing Medigap policies stems from your health, both current and future. Family health history can be an insight into your future health.
If you’re on the healthier side and aren’t currently facing any health issues, Plan G or N may work best.
Either way, you’ll want to strongly consider any health risks that may arise to make the best decision.
Plan G can make the most sense at times when the Plan F premium difference is higher than the Part B deductible.
For example, if Plan F is $215 more a year than Plan G and the only difference is the Part B deductible. You would save $18 a year by paying your deductible.
This amount could become a higher saving as years go on, and rates increase.
Medigap and Pricing
Something to keep in mind when shopping policies are pricing and affordability. You’ll want to prepare to afford the comprehensive plan, so it’s essential to know how pricing works. The cost of a Medigap policy depends on age, eligibility, and location.
There are three forms of Medigap pricing methods:
- Community Rated – a beneficiary’s premium costs aren’t reliant on their age
- Issue Age Rated – Depending on what your age is when your policy becomes active and will determine the monthly premium
- Attained Age Rated – The premium costs associated with this increase as the beneficiary gets older
Your Personal Preference When Choosing a Medigap Policy
You’ll be choosing between ten different Medigap supplement policies. Your personal preference should drive your choice of whether to go with Plan F, G, or N.
Would you be okay with having to pay out of pocket costs for coinsurance or co-pays every time you pay a visit to your physician? If no, then you should probably go with Plan F.
If paying a few dollars every time you see your doctor doesn’t hurt your pocket, then Plan N may be a good fit.
Medigap Household Discount
You may have come across the term “Household Discount” a time or two. So, what exactly does this mean?
The Medigap Household Discount is a percentage off of your Medicare Supplement premium, typically for two spouses that carry a Supplement plan with the same insurance company at the same time.
Most times, however, each state may give different conditions to get the discount.
Guaranteed Issue Rights
Guaranteed Issue Rights are Medigap Protections. These are rights that you have depending on particular situations.
Choosing a Medigap policy during your Medicare Supplement Open Enrollment Period is ideal, mostly because you get the best premium.
An insurance company must:
- Cover all pre-existing health conditions
- Cannot charge a beneficiary more for a Medigap policy because of current or past health issues
- Must allow you to buy a Medigap policy
Is it Possible for Medigap Premiums to Increase
The younger the beneficiary, typically the lower the Medigap premium. Premiums can increase over time, dependent upon inflation and other factors.
Provider Reputation or Rating
Though many don’t see past the premium, company reputation is essential to securing a good Medigap policy.
In a situation where two insurance providers use the same premium, choosing a company with the highest rating would be the best move.
Choosing your Medigap Policy
When you decide that you’re ready to pursue your Medigap coverage, you have several ways in which to do so. Choosing a Medigap plan is easy; you can call the phone number listed above and speak with an agent in your state.
Also, you can fill out our online contact form, and a licensed agent will contact you. Our team of professional agents can help you. We’ll walk you through pricing methods, answer any questions, and help you understand all the Medigap policies.