How Much Does a Medicare Supplement Cost?
Are you just getting into Medicare? Are you price shopping for a Medigap plan? Here at Lange Insurance Consulting we specialize in helping seniors find a supplement that meets their needs and budget.
We start by asking you what you are looking for because there are multiple Medigap plans available all over the country. These plans are standardized by Medicare so we find out what you want out of your plan and then match you up to the right style of Medigap plan. Then we will help you compare prices and the quality of the companies available.
What Is A Medigap Plan?
Also known as a Medicare supplement, Medigap plans help cover that gap in coverage from “Original Mediare” (Part A & B). There are Medigap plans A though N. Each plan is standardized by Medicare to provide certain set benefits. Medigap plans only cover the gaps in coverage from Part A and B of Medicare. Medicare supplements will not cover things like dental, vision & hearing because they are not covered by Original Medicare with a few exceptions.
What Does a Medigap Plan Cost?
Medigap plan costs vary based on a number of factors. Insurance companies can use three different ways to price their plans :
- Issue-age rate: the age when you purchase the policy will determine the monthly premium
- Community-rated – premiums are not rated based on your age
- Attained-age rated- premiums will increase as you age with the policy
Once you know how the company rates their policies, then there are few more things that help determine your price:
- Your zip code- A Plan G with company XYZ may be $20 more or less just because of where you live
- Tobacco use- There are many states that allow companies to upcharge you for tobacco use
- Gender- Companies charge differently for females and males so if your significant other is paying less this may be part of it
- Household Discounts- Some companies will simply give you a discount if you live with another similar aged person and others will only give you a discount if you both have a policy with the same company.
- The Plan- Not all supplements are created equal. A Plan G is right now the most popular plan for the price and offers the most benefits for your dollar. A plan N offers a few less benefits but generally comes with a reduced price.
Right now most of the Medicare supplements we help people enroll into range anywhere from $80 to $140 per month with some areas ranging even higher. This is the averages for people entering Medicare. If you would like to know specifically what your cost would be give us a call at 866-319-5886.
Take a look at the graphic below for a comparison of how Medicare supplements differ in the benefits offered.
Dental, Vision and Hearing
While most dental, vision and hearing benefits are not covered by Medicare, there are plans available on a separate policy. The average costs can range from $20 to $40 per month depending on what type of plan you go with. The more benefits typically mean more cost to the consumer.
Companies offer a variety of plans and will even package together dental, vision and hearing all into one plan but usually have a maximum benefit amount attached.
What are Medicare Advantage Plans
Medicare Advantage plans are a way to get your Medicare benefits provided to you through a private insurance company. You must have Parts A and B to get an Advantage plan. This is often referred to as a Part C of Medicare. Medicare Advantage plans have to offer at the very minimum the same benefits as Original Medicare but can include additional benefits and some also include your Part D drug coverage as part of the plan.
Advantage plans can also include additional benefits such as dental, vision and hearing and those benefits can very from plan to plan.
Most advantage plans have a network and have cost sharing that will vary based on the plan you pick. Again, the more benefits the plan has will usually mean a higher monthly premium for you. If you find a Medigap Plan to be a little too pricey then an Advantage plan may be a good option for you to look into. Give us a call if you would like to learn more about Advantage plans available in your area.
What Plan Do We Recommend?
Our goal is to help you find the plan that is right for you and will only recommend a plan based on your needs and not on a commission. There is a very little difference in compensation and would be foolish to do anything but what is right for our customers.
Medicare supplements are where we like to start with our customers. This is because they offer a great amount of cost savings and the benefits are very much to the point. With a Medigap plan you can go anywhere in the country as long as the provider is a Medicare provider. You also will see very little out of pocket costs which makes life much easier to plan. We know all to well how the unexpected cost of doctor visit can affect a person. Medigap plans help reduce the unknown costs from year to year. The best part is knowing that the only difference between the same plan being offered from each company is the monthly cost. If you see a Plan N at $85 per month with one company and then see a Plan N at $105 per month you can confidently know that the benefits are the same and you are just paying more.
While we like to help people save money, we work with a variety of companies to make sure that you not only get the best price but that you also can enroll with a company that won’t be charging you through the roof after you are with them for a few years. Sometimes companies will offer a very low price to get you signed up and then raise the rates faster than other plans. We help inform you that saving five dollars now may end up costing you hundreds of dollars down the road.
Give us a call and you will be able to confidently move into Medicare knowing all you need to know and pick a plan that works for you. Give us a call today at 866-319-5886.