Medicare Supplement insurance is a vital component for seniors in their plan to enjoy their golden years, and when it comes to protecting your nest egg and income it should be treated just as you would look for any other type of insurance. Auto and home insurance companies all have various policies to consider, and as you age your needs for that coverage might change. To help you find the best supplemental insurance for Medicare, Medigap quotes are easily available using MedigapPlansGuide.com and you have access to multiple carriers to make sure you are not overpaying for your insurance coverage.
Many people frequently ask us “Why are the premiums all different for something like Plan F when they all have the same coverage?” This is actually a good thing, although we realize it adds to the confusion for most people. The premiums for supplement plans differ because only the coverage within each plan letter is standardized, and the price is not fixed. There is no way that the government can have each insurance carrier maintain the exact same rates, as within each group of people it’s the amount of claims that determines how much the premiums will be.
Each insurance carrier has guidelines they must adhere to when it comes to offering rates initially as well as when it comes time to raise rates. They must first get their rates approved by the state when offering a new plan or group. Once this group has been established and time goes on, when it comes to raise the rates of each group they must follow those guidelines and raise their rates based on the amount of claims that were paid out relative to the amount of premiums coming in. Many people feel there rates are raised based on their own personal health claims during the previous year and this simply is not true.
When Should You Check Rates?
As mentioned when initially applying for a Medicare supplement you should obtain Medigap quotes from as many carriers as possible. Working with an experienced, independent agent is the best way to do this as there are no direct fees or costs that you must pay to the agent. By doing this you can see the actual difference in premiums from each company and make sure you don’t end up paying too much for the plan you select.
What About Rate Increases?
After finally finding a Medigap plan with premiums and coverage you are comfortable with, your mail goal is to simply take care of your health and obviously live as great of a life as possible. There will however come a time when your premium goes up, as they all do. Whether your plan is Community-Rated, Issue-Age, or Attained-Age every company has rate increases. They might be based on age, or inflation, but rest assured your premiums will go up. Here is where working with an independent agent really pays off. When you do in fact get a premium increase, your agent can once again shop the rates from all the top companies to see if you can save money for the exact same coverage. You may want to evaluate different plans at this time as well to see if switching is a good idea.
You Can Change Your Medigap Plan Any Time During the Year
You do not have to wait until the enrollment period to switch Medicare supplement plans. This only applies to changing your Part D drug plan, or those who wish to return to Originial Medicare after being enrolled in a Medicare Advantage plan (MAPD). Also during this time period, which lasts from October 15th through December 7th, anyone who is on a Medigap plan can enroll in a Medicare Advantage plan, or those on a MAPD can switch to a different MAPD.
Therefore, after enrolling in a Medigap plan when you do in fact get a rate increase remember you can apply to change plans at any time during the year.
To recap, after you decide on which Medicare supplement plan that you want, be sure to get Medigap quotes from multiple companies using our website before enrolling. Once you have your plan be sure to check rates each time you get an increase and see if there is a better option with another company.