by Russell Noga | Updated July 8th, 2023
Original Medicare Part A doesn’t have a premium involved, and the premiums on Part B are minimal. It’s prudent for any senior to enroll in Medicare during their retirement to absorb the healthcare costs they endure in their golden years.
However, Medicare doesn’t cover everything. Original Medicare Parts A & B only cover 80% of these expenses, leaving you to pay the 20% balance. A Medigap plan helps you cover the additional out-of-pocket costs left behind by Original Medicare.
Medigap policies are available from private healthcare insurers, not the government. As a result, you have to pay monthly premiums on the plan you select. What are Medicare supplement rates, and how do they differ by plan, state, age, health status, and provider?
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What are the Different Medicare Supplement Plans & Benefits?
The ten Medigap plans have different scales of benefits for each policy. Some are more comprehensive than others. The Federal government standardizes the scale of benefits in all plans, ensuring all providers offer the same benefits in every policy.
All Medigap plans offer the following benefits.
- Part A coinsurance and hospital costs for up to 365 days after using up Medicare benefits.
- Part A hospice care coinsurance or copayment.
- Part B coinsurance or copayment.
- Blood transfusion costs for the first three pints of blood.
Plans F*, G, and N offer additional Medicare Parts A & B benefits.
- Part A deductible.
- Part B excess charges (Plan N doesn’t cover these charges).
- Skilled nursing facility care coinsurance.
- 80% of emergency healthcare costs when traveling outside the US for 60 days. ($250 deductible and $50,000 maximum apply).
- Unlimited coverage for all out-of-pocket costs.
*You must be eligible for Medicare before January 1, 2020, to qualify for Plan F.
Medigap plans don’t cover the following medical expenses unrelated to Original Medicare Parts A & B.
- Stays at nursing homes.
- Private duty nursing.
- Prescription medications.
- Dental, hearing, and vision services.
- Physio, acupuncture, chiropractic, podiatry, and other preventative services.
Some providers offer additional packages covering dental, hearing, and vision services. They may charge an additional premium for these packages or offer you discounted rates on these services if you use their in-network partners.
Some insurers offer discounts on other healthcare services and items, such as physiotherapy, chiropractic, podiatry, OTC supplements and medications, and even gym memberships. A licensed Medigap agent can assist you with finding a provider offering the best perks in your state.
Medicare Supplement Rates by Provider
Private healthcare insurers like Cigna and Humana offer Medigap plans. The rates they charge for monthly premiums can differ from provider to provider in the same state. For instance, UnitedHealthcare might be the lowest-cost provider for Plan G in Alabama, while Blue Cross Blue Shield is the most expensive option.
However, these prices are consistent across all states. For instance, in Florida, Humana might be the lowest-cost provider for Plan G, while UnitedHealthcare is the most expensive option. Some insurers offer additional perks and benefits with their plans, making them more expensive.
For instance, Aetna is one of many states’ lowest-cost insurers for Medigap plans. However, they don’t offer many perks to their beneficiaries. Humana and Cigna might be a little more expensive for the same plan, but you get perks like discounts on supplements, medications, gym memberships, and vision, dental, and hearing services.
Medicare Supplement Rates by Age
Medigap insurers use your age when assessing your risk and the premiums they charge for your plan. Insurers use one of the three models for setting your premium by age.
Attained age-rated – The premium is based on your age when applying for a Medigap plan. The rate increases as you get older. These premiums often start lower but get more costly as you age.
Issue age-rated – The insurers base your premium on your age at the date of application. The younger you are, the lower the premium. This premium remains constant and doesn’t increase as you age.
Community-rated – All policyholders, regardless of age, receive the same monthly premium.
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Medicare Supplement Rates by Gender
Men are at risk of experiencing chronic health conditions more than women. For instance, between 70% and 89% of all heart attacks in the United States occur in men. The prevalence of diabetes in the US population is 14.6% in men and 9.1% in women.
Medicare Supplement Rates by Health Status
Your health status also impacts your rates when applying for Medigap plans. If you smoke tobacco products or vape, you can expect to pay a much higher rate than a non-smoker. Premiums for smokers can be up to 300% more than non-smokers, depending on the insurer, the state, and age.
If you sign up for Medigap during the “Open Enrollment” period six months after your 65th birthday, the insurer must accept your application. They can’t charge you higher monthly premiums or deny you a plan if you have pre-existing health conditions. The worst they can do is initiate a three to six-month waiting period if you have previously had 6-months of healthcare coverage with another insurance company.
However, if you apply after the Open Enrollment period, the insurer can charge you a higher-than-average premium if you have pre-existing conditions. Or they might deny your application to join their Medigap scheme.
Medicare Supplement Rates by State
The cost of Medigap premiums can vary by state. For instance, people living in states like California and New York and cities like LA or NYC can expect to pay more in premiums than applicants residing in areas like New Mexico and Montana or Albuquerque or Helena.
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Frequently Asked Questions
What are Medicare Supplement rates?
Medicare Supplement rates refer to the premiums you pay for your Medicare Supplement insurance coverage. These rates can vary based on factors such as the specific plan you choose, the insurance provider you select, and the state in which you reside.
How are Medicare Supplement rates determined?
Medicare Supplement rates are determined by insurance companies based on several factors, including the coverage benefits of the plan, the anticipated claims costs, administrative expenses, and the age and location of the policyholder. Rates can also vary between insurance providers due to their underwriting practices and overall pricing strategies.
What is the difference between Medicare Plan G and Plan N rates?
The rates for Medicare Plan G and Plan N can differ due to variations in coverage benefits and cost-sharing requirements. Plan G generally has higher rates compared to Plan N because it offers more comprehensive coverage, including coverage for Medicare Part B excess charges.
Do Medicare Supplement rates vary between insurance providers?
Yes, Medicare Supplement rates can vary between insurance providers. Each insurance company sets its own rates based on factors such as the cost of healthcare services in the specific geographic area, their underwriting practices, and their overall pricing strategies. It’s essential to compare rates from multiple providers to ensure you’re getting the best value for your coverage.
Can Medicare Supplement rates vary between states?
Yes, Medicare Supplement rates can vary between states. Insurance companies consider factors such as healthcare costs, utilization rates, and state regulations when determining rates. It’s important to note that while rates may differ, the coverage benefits of a specific Medicare Supplement plan remain the same across states.
How can I find the best Medicare Supplement rates?
To find the best Medicare Supplement rates, it’s recommended to compare rates from multiple insurance providers. You can request quotes directly from insurance companies, utilize online comparison tools, or work with licensed insurance agents who can provide you with personalized rate information based on your location and individual circumstances.
What factors should I consider when comparing Medicare Supplement rates?
When comparing Medicare Supplement rates, it’s important to consider not only the premiums but also the overall value and coverage benefits offered by the plan. Evaluate factors such as deductibles, coinsurance, copayments, out-of-pocket limits, and any additional perks or benefits provided by the plan.
Are there discounts available for Medicare Supplement rates?
Some insurance companies may offer discounts on Medicare Supplement rates. These discounts can vary and may be based on factors such as household composition, payment method, or other eligibility criteria. It’s advisable to inquire about any available discounts when obtaining quotes from insurance providers.
Can Medicare Supplement rates increase over time?
Yes, Medicare Supplement rates can increase over time. Insurance companies may adjust rates due to factors such as medical inflation, changes in healthcare costs, and the age-related risk profile of the policyholders. It’s important to be aware of potential rate increases when selecting a Medicare Supplement plan.
How often do Medicare Supplement rates change?
Medicare Supplement rates can change periodically based on various factors, including insurance company policies, market conditions, and regulatory changes. It’s advisable to review your rates annually and consider comparing options during the Medicare Annual Enrollment Period to ensure you have the most competitive rates for your coverage.
Get a Free Professional Consultation on Medicare Supplement Insurance
If you want the best rates on your Medigap plan, call our team at 1-888-891-0229. Our fully licensed agents work with all Medigap providers. We’ll find you the best rate on Medicare supplement plans in any state. Reach out to us for a free consultation and quote today. Or leave your contact details on our web form, and we’ll get an agent to contact you to discuss your healthcare needs.
Russell Noga is the CEO and Medicare editor of Medisupps.com. His 15 years of experience in the Medicare insurance market includes being a licensed Medicare insurance broker in all 50 states. He is frequently featured as a featured as a keynote Medicare event speaker, has authored hundreds of Medicare content pages, and hosts the very popular Medisupps.com Medicare Youtube channel. His expertise includes Medicare, Medigap insurance, Medicare Advantage plans, and Medicare Part D.