Chicago Health | Homepage
What you should know about Medigap pricing

What you should know about Medigap pricing

By Kimberly Lankford, Kiplinger Retirement Report

Q: I turned 65 a few years ago while living in Florida. My wife and I are about to move to Delaware, and the insurer says I can keep my policy. (My wife turns 65 next year.) Do the pricing rules for Medigap policies vary by state? And will the premiums change for the policy I already have?

A: Yes to both questions. Medicare supplemental coverage fills in the gaps in Medicare, such as deductibles and co-payments, and comes in 10 standardized policies (A through F, and K through N). Each policy with the same letter designation provides the same coverage, but the premiums can vary a lot by insurer. In some states, insurers can choose from three pricing methods for Medigap policies: issue-age policies, which base premiums on your age when you purchase the policy; attained-age policies, which can increase premiums each year because of your age; and community-rated policies, which are similar to issue-age policies but generally charge everyone the same rate regardless of age. “Premiums for attained-age policies are likely to go up a lot more than policies that are issue-age or community-rated,” says Bonnie Burns, a Medigap expert and the training and policy specialist for California Health Advocates.

Since you already have an issue-age policy, you’ll be able to keep your policy with that pricing structure, even though you are moving, says Burns. Your premiums may change, however, because of differences in health care costs in your area. When your wife turns 65, she’ll have to choose from the options available in Delaware. Most insurers in that state offer attained-age policies, but she should be able to find a few that offer issue-age or community-rated policies.

Most state insurance departments have lists of Medigap premiums and pricing structures for the policies sold in their state, such as the Delaware Medicare Supplement Insurance Shopper’s Guide. Go to the National Association of Insurance Commissioners’ map to find links to each state’s insurance department. You can get extra help with your Medigap choices by ordering a customized Weiss Ratings Medigap Report ($49 for Kiplinger readers), which lists the premiums and pricing structure of the Medigap plans available in your area, based on your age and location, and provides advice on choosing a policy.

(c) 2016, KIPLINGER. ALL RIGHTS RESERVED. DISTRIBUTED BY TRIBUNE CONTENT AGENCY, LLC.

Similar Articles

Necessary Rest

Necessary Rest

Respite care eases the burdens on caregivers By Kevin Sterne Caring for an aging parent can be physically

Antibiotics can be an option rather than surgery for simple appendicitis

Antibiotics can be an option rather than surgery for simple appendicitis

The Medicine Cabinet-Ask the Harvard Expert  By Howard LeWine, M.D. Q: A friend recently was diagnosed with

How to improve your cholesterol levels

How to improve your cholesterol levels

By Joyce Hendley If one-third of Americans have unhealthy cholesterol levels, why did the U.S. recently

Five things parents should know about stomachaches

Five things parents should know about stomachaches

By Cleveland Clinic's Children's Health Team How can you tell if it's a regular tummy ache

Quick tips for gluten-free eating

Quick tips for gluten-free eating

By EatingWell Going gluten-free can feel difficult -- especially at first -- but it doesn't have

Articles By Category

Family Health

In The Know

CH Lifestyle

March 2017
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
February 26, 2017 February 27, 2017 February 28, 2017 March 1, 2017 March 2, 2017 March 3, 2017 March 4, 2017
March 5, 2017 March 6, 2017 March 7, 2017 March 8, 2017 March 9, 2017 March 10, 2017 March 11, 2017
March 12, 2017 March 13, 2017 March 14, 2017 March 15, 2017 March 16, 2017 March 17, 2017 March 18, 2017
March 19, 2017 March 20, 2017 March 21, 2017 March 22, 2017 March 23, 2017 March 24, 2017 March 25, 2017
March 26, 2017 March 27, 2017 March 28, 2017 March 29, 2017 March 30, 2017 March 31, 2017 April 1, 2017

Categories

Recent Comments

Swing for the fences in the fight to Sideline Pancreatic Cancer

Swing for the fences in the fight to Sideline Pancreatic Cancer

Enjoy a great night of baseball at Peoples Natural

VIEW ARTICLE
Cost to give birth 1943 - Page 3 - Defending The Truth Political Forum

Cost to give birth 1943 - Page 3 - Defending The Truth Political Forum

A Hazy Shade of Healthcare: What does tort reform

VIEW ARTICLE

Archives