If you plan to enroll in Original Medicare or are already enrolled, you might have considered purchasing a Medicare Supplement insurance plan to enhance your coverage.
Medicare Supplement (Medigap) insurance plans assist in paying external costs for the services covered by Part A and Part B. This includes not only deductibles but also copayments and coinsurance. The coverage, on the other hand, for these expenses, varies with each plan type.
The cost of a Medicare Supplement insurance plan is dependent on several factors. This includes plan rating systems in addition to whether or not you have guaranteed issue rights coupled with the type of plan you have opted for.
Let’s see how the rating systems function.
Typically, the premium’s price is present so that everyone buying a Medicare Supplement insurance plan, regardless of the type, gets to pay the same premium every month. However, the premiums might go up due to factors such as inflation, but will never change as you age.
You might incur this premium due to the rating system that accounts for the age when you purchase the Medicare Supplement insurance plan. Take note that premiums are lower if you buy the plan at 65 years of age rather than waiting until you are older. Similar to community rating, premiums may rise over time due to inflation and other factors. However, they will not increase due to age.
You pay a premium based on your current age. This can prove to be best for the younger buyers. This is because they might find such insurance plans within their reach better in terms of affordability. However, plans are likely to get very expensive because the premium rises as you age. Premiums may also go up because of inflation.
Which plan is right for you?
The premiums of Medicare Supplement Plans cost ranges anywhere between $75 to around $270 per month. Generally, plans that come with higher monthly premiums have lower deductibles. Similarly, plans that come with lower monthly premiums tend to have higher deductibles.
It is crucial to seriously consider how much coverage you are looking for before deciding on a plan. Make sure you run different Medicare Supplement insurance plans through comparisons in terms of coverage and costs.
If you have any questions, we are here to help. Please feel free to contact us via phone or email.