Medigap Quotes assist with covering the “gap expenses” that Original Medicare does not cover. Medigap Plans have the same basis in terms of categories across the states; however premium prices vary from one insurance company to the next. This is why the “getting a quote” stage is so imperative.
It is definitely worth taking the time out to compare plans and benefits prior to enrolling in a Medigap Plan and getting a Medigap quote.
When is the best time to enroll and get a Medigap quote?
Enrolling timing can strongly affect the cost of your Medigap Plan. For most citizens, you are first eligible during the Medigap Open Enrolment Period. This refers to the 6-month period that begins when you turn 65 and covered by Medicare Part B. Within such time, you are guaranteed issue rights which means that insurers cannot use your health status to turn you down or charge you more. Should you enroll after these 6-month period, insurers can then use medical records and health statuses to their advantage and refuse to sell you a policy or charge you a higher premium. The best time to enroll is therefore within your Medigap Open Enrolment Period.
How do insurance companies price Medigap premiums?
When getting a Medigap quote, be sure to look at the current premium cost as well as how insurers are pricing premiums. Insurers look at your age and location to help determine your premium. The pricing method which insurers use to create a Medigap quote affects how much you pay for your policy premium at a later stage, bearing in mind that your premium increases on an annual basis.
Insurers can set Medigap quotes via the following ways
No-age rated or community-rated: This means that your rates are not affected by your age. These are often some of the most affordable plans however premiums are prone to increase due to aspects such as inflation.
Issue-age rated: The rate is set at the age you are when you purchase the policy. The younger you are, the lower your premiums are, however, your premiums still increase as the years go by due to inflation, but never due to your age.
Attained-age rated: The first premium price is based on your age at the time which your policy is purchased, however premiums increase as you get older. These are the most inexpensive premiums at the start but later build up with constant increases.
When getting a Medigap quote, remember that you want to keep your premium down but consider the future premium increases, especially if you take out the Medigap Plan at a younger age. Always shop around, compare prices, and ask questions about how your premium was achieved.
Important Tips When Getting a Medigap Quote:
Getting a Medigap quote isn’t just about filling in a contact form and choosing the lowest number on your screen. There are a number of things to consider when taking out a Medigap plan and it is vital these elements are analyzed, sorted and chosen based on what you are looking for, and what is best for you as an individual.
Here are a few tips to getting an affordable yet effective Medigap quote:
There isn’t much to it, usually, the best deals on Medigap quotes can be found by simply doing a little research and making a few phone calls to insurers.
Sort your benefits:
Decide what benefits are most important to you before getting a Medigap quote. This will allow you to easily eliminate what you do not need and show you a general premium price you should be looking at.
Get to know premium pricing structures:
Ensure you know how insurers price their premiums – this could be either no age rated, issue age rated, or attained age rated. Each type speaks to higher or lower premiums and doesn’t forget about annual increases of course.
Use charts for more information:
Refer to Medigap Plan charts to see which category you fall into and what benefits are included. Charts are available online and are easy to comprehend, making your job easier when you receive your Medigap quotes.
Contact local insurers:
Call your local State Health Insurance Assistance Program for a list of local insurers that can quote. It is also a good idea to ask if you can send through a Medigap rate comparison shopping guide specific to your state. This helps you to compare costs easily and at your leisure.
Don’t be shy to ask insurers questions like:
- Are you licensed in this state?
- Do you sell this particular Medigap Plan? (e.g. Plan C, Plan F)
- Do you use medical underwriting for the above policy?
These tips are designed to get you to do more homework in the beginning, but reap the rewards in the end. Saving on Medigap costs will allow you to get a Medigap Plan with all the benefits you need, at a decent price, with a reasonable annual increase.
Think about your past, present, and future health needs when getting Medigap quotes, and don’t be afraid to ask as many questions as you like. Medigap Plans are here to help – so make sure you are happy with your final Medigap quote and policy.