How do I Rate Medicare Health Supplements?

Medicare supplemental insurance plans, better known as Medigap policies, can help save Medicare beneficiaries money. However, some beneficiaries find themselves paying more than they should if they didn't put the time and effort into researching a plan before signing up. Understanding the criteria and methodology in rating a Medigap plan can help lower Medigap costs in the long run.

Instructions

• 1

  Get a list of available Medigap plans in the area. Medicare Interactive recommends retrieving a list by contacting either the State Department of Insurance or the State Health Insurance Assistance Program.

• 2

  Seek counseling through the State Health Insurance Assistance Program. These programs have counselors available to offer advice and information to Medicare beneficiaries. The State Health Insurance Assistance Program not only will know which Medigap policies are available, but also they may know which one will offer the best rate based on individual situations.

• 3

  Use the Medicare.gov plan finder tool for estimated costs and use these costs to compare the rates. Go to the Medicare.gov homepage and click the "Health & Drug Plans" icon, followed by "Compare Medigap Policies." Choose a general search or a personalized search, which will require inputting more personal information.

• 4

  Follow the search's prompts and give it the information that it asks, most importantly zip code and health status. The search will then supply a list of Medigap policies A-N. To compare the rates of the plans, note the two columns titled "Monthly Premium" and "Estimated Annual Cost for People Like You." This will provide a rough idea of how much this Medigap policy might cost.

• 5

  Call each Medigap plan on the list of local Medigap policies that offer the type of policy you are interested in individually. Rates will vary significantly from company to company, so it's important to get a quote directly from the company.

• 6

  Ask the company the right questions to know how costs will change over time. Find out how premiums will change over time by asking how the premium is rated. No-age-rated premiums are the same throughout life; issue-age-rated premiums are based on the age at the time the policy was bought (but increases due to inflation); and attained-age-rated policies have premiums that increase with age.

• 7

  Ask the company whether there is a pre-existing condition waiting period. If you are not enrolling during an open enrollment period, the Medigap policy has the right to delay coverage of pre-existing conditions by up to six months.