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The Basics of Medicare Rates and Medicare Supplement
Author David Schneider | Aug 29,2007
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Medigap is a health insurance program that is monitored by Medicare. However, it is not a government run program. Instead, you will need to buy your Medigap insurance policy from an independent insurance agent. Due to this, you will want to learn the basics of Medicare Supplement Insurance, a.k.a. Medigap, rates.
Pricing Plans
Medigap is made up of a series of 12 distinct plans. Each plan offers a unique collection of basic benefits and optional benefits. The cost of each plan is going to be based on what coverage each plan offers. The more coverage options that the plan has, the more expensive it will be. Inversely, the fewer coverage options the plan has, the less expensive it is going to be.
Finding a Cheap Medigap Plan
The cheapest Medigap plans are Plans A and B. Plan A is the most inexpensive Medigap Plan because all it covers are the basic benefits. These benefits include co-payment and coinsurance gap coverage for hospital days 61-150, coverage for 365 more hospital days during your life, and coinsurance gap coverage for Medicare Part B. Medigap Plan B is the next cheapest plan. It offers the basic benefits, additional blood product coverage and additional Medicare Part B coinsurance gap coverage.
Saving Money on the Larger Plans
As mentioned above, the more coverage the Medigap plan offers, the more expensive the plan is going to be. However, the Medigap program has worked out a way for people to get the more comprehensive plans for a more affordable rate. Plans F, J, K and L each offer people the option of taking a high deductible in order to lower their monthly premiums. This is a viable option for people on a tight budget who need the extra coverage offered by these plans.
It's a Competitive Market
Medigap plans are marketed by independent insurance agents. This means that Medigap policies are found within a competitive market. To get the best deals on your Medigap insurance, also referred to as Medicare Supplemental Insurance, you will need to shop around. A good way to do this is to use a health insurance quote request service.
Pricing By State Varies
Each state offers a different selection of Medigap plans for people to choose from. The price for each Medigap Plan is going to vary by state. Some states have been criticized for allowing insurance agents to charge excessively high insurance rates for Medigap plans. For example, Michigan insurance agents charge an average of $2,355 a year for Medigap Plan C, while the national average for this plan is only $1,766 a year. Fortunately, states are starting to step in to correct overcharging problems. However, in most states, you are going to find reasonable rates and friendly service. |
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