Medicare Supplemental Insurance
If you want to buy a Medicare supplemental insurance policy, known as a “Medigap” policy, you will need to decide which benefit package to buy and which insurer to use. Before making a decision, it is helpful to understand what benefits are covered and how to compare plans.
There are 10 different standardized Medigap plans, labeled A, B, C, D, F, G, K, L, M, and N. Each Medigap plan pays for a particular set of benefits. Core benefits are benefits that every Medigap plan must cover, such as Medicare Part A copayments. Not all plans are available in all states. Massachusetts, Minnesota and Wisconsin have their own standardized Medigap plans
Basics of Medicare Supplemental Insurance
Insurance companies that sell Medigap policies are not required to sell all Medigap plan types; however, they are required to offer at least plan A if they offer any other Medigap plans. Plan A offers the fewest benefits of the ten standardized Medigap plans.
The most popular Medigap plans are C and F; these two plan types are also the only two that cover both the Part A and Part B deductibles.
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Medicare supplement plans cost
Community Rated
Most people pay the same, regardless of age or sex. This means if a person’s insurance premium goes up, the decision to increase it is related more to the economy than a person’s health.
Issue-age Rated.
This premium is related to a person’s age when they bought it. As a general rule, younger people pay less and older people pay more. A person’s premium may increase as they get older due to inflation, but not because they’re getting older.
Attained-age Rated
This premium is lower for younger people and goes up as a person gets older. It may be the least expensive as a person first buys it, but it can become the most expensive as they age.