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Medicare Supplement Cost
The most important thing to consider when looking at the cost of Medicare Supplement Insurance, is that all companies offer the same identical plans. There is no reason to pay more money for one particular company as opposed to another, because they all have the same exact plans.
As you probably know, Medicare Supplement Insurance is also called Medigap. Medigap cost can vary dramatically from company to company, so that is why it is extremely to compare the cost of Medicare Supplement Insurance before you decide to purchase a policy. You can compare the cost of Medicare Supplement insurance and cost of Medigap on our website by filling out our quote comparison form on the "get quotes" page of our website, or clicking on one of the "get quotes" buttons you will see on all of our webpages.
How Medicare Supplement Companies Set Prices
There are three main ways that Medicare Supplement Companies set their prices. They are:
- Attained Age Rated (a.k.a. Current Age Rated)
- Issue Age Rated (a.k.a. Entry Age Rated)
- Community Rated (a.k.a. No Age Rated)
Attained Age Rated
By far, the most popular method used to determine the cost of Medicare Supplemental Insurance is by using the "attained Age Method". This means that every year, your Medicare Supplement Premium will be based off of your current age. For example: John Smith pays $100 per month for his policy at age 65, then his rate goes up to $110 per month at age 66. This increase being due to his age.
Issue Age Rated
The second most popular method Medigap insurance companies utilize when pricing Medicare Supplement Plans is the "Issue Age Method". This method bases your premium off of the age you were when you originally purchased your Medigap Policy. For example: Sallie Johnson originally purchased her Medicare Supplement Insurance Plan at age 70. This means that the cost of her Medicare Supplement will always be based off of a 70 year old. So even when she turns 80 years of age, she will still be paying the cost of someone who is 70. This however does NOT mean that your rates will not go up annually. You will likely still see annual rate increases, although they will not be based off of age. The rates will be based off of inflation, and other factors. This "Issue Age Method" is generally more costly for people under 75, and perhaps less costly for people who happen to be above that age.
The least popular method companies use to determine Medicare Supplement cost, is the "Community Rated Method". this method does not focus on age, or even gender. Instead, it focuses on the cost of a "group" or "community" of people. If a particular Medigap company uses the Community Rated method, they will assign a specific rate to a "community" of people living within a specific geographical location (maybe an entire state, or group of zip codes, etc). For example: John buys a Medicare Supplement Plan at age 65 and pays $150 per month. His friend Susan also buys the same Medicare Supplement Plan at age 73, but also pays the same premium of $150 per month. This is because the cost of Medicare Supplements will remain the same for anyone who purchases a policy within their specific "community".
To learn more about the cost of Medicare Supplemental Insurance, you can view price comparisons for your specific area by filling out the form at the top of this page, or calling us to speak with a Medicare Specialist at (855) 419-3826.
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