Comparing Medigap costs

Saturday, Mar. 26th 2011 6:03 AM

As discussed on the previous pages, the cost of Medigap policies can vary widely. There can be big differences in the premiums that different insurance companies charge for exactly the same coverage. As you shop for a Medigap policy, be sure to compare the same type of Medigap policy, and consider the type of pricing used.  For example, compare a Medigap Plan C from one insurance company with a Medigap Plan C from another insurance company. Although this guide can’t give actual costs of Medigap policies, you can get this information by calling insurance companies or your State Health Insurance Assistance Program.

You can also find out which insurance companies sell Medigap policies in your area by visiting www.medicare.gov and selecting “Health & Drug Plans.” The cost of your Medigap policy may also depend on whether the insurance
company does any of the following:

Offers discounts (such as discounts for women, non-smokers, or people who are married; discounts for paying annually; discounts for paying your premiums using electronic funds transfer; or discounts for multiple policies).

Uses medical underwriting, or applies a different premium when you don’t have a guaranteed issue right, or aren’t in a Medigap Open Enrollment period.

• Sells Medicare SELECT policies that may require you to use certain providers. If you buy this type of Medigap policy, your premium may be less. See page 20.

• Offers a “high-deductible option” for Medigap Plan F. If you buy Medigap Plan F with a high-deductible option, you must pay the first $2,000 (in 2011) of deductibles, copayments, and coinsurance not paid by Medicare before the Medigap policy pays anything. You must also pay a separate deductible ($250 per year) for foreign travel emergency services.

• If you bought your Medigap Plan J before January 1, 2006, and it still covers prescription drugs, you would also pay a separate deductible ($250 per year) for prescription drugs covered by the Medigap policy.

Posted on Saturday, Mar. 26th 2011 6:03 AM | by Share of Cost | in Share of Cost | Comments Off on Comparing Medigap costs