How Do I Get the Lowest Rate on Medigap Insurance?
Remember that Medigap polices are standardized. So when comparing rates, the first thing is to make sure you are comparing apples to apples – in other words if you are looking at the premium costs for Plan C from one company, make sure you are comparing the rates to another company offering Plan C.
Again we recommend you work with a broker, who can help you find the right Medigap plan for you, at the most affordable price. However, if you choose to research and comparison shop on your own, you can find what insurance companies are selling Medigap plans where you live by logging on to www.medicare.gov and clicking on "Compare Health Plans and Medigap Policies in Your Area".
So if all the plans are exactly the same - why should rates vary from insurance company to insurance company? Good question. Some of the reasons why Medigap insurance rates differ include:
- If the health insurance company offers lifestyle discounts, such as for married people, women, or non-smokers, who are statistically healthier, and therefore of lower risk.
- The insurance company may also offer discounts for paying your premiums annually in a lump some, instead of monthly, or for using an electronic payment method.
- Use of medical underwriting, or charging people more for health issues during non open enrollment or guaranteed issue situations
- If the insurance company offers the "high deductible option" for plans that have such an option.
One of the best ways to save money on a Medigap plan is to find out if for whichever Plan A-N you are interested in, the given insurer offers a Medicare SELECT option.
Medicare SELECT is a type of Medigap policy that saves you money, but limits your choices. With a Medicare SELECT Medigap plan, you must use hospitals and, in some cases, doctors within a specified network, with the exception of emergencies of course.
These types of policies generally cost less than other Medigap policies. However, if you "go out of network" and do not use a Medicare SELECT hospital or doctor for anything other than emergency care, you will be responsible for that part of the bill that your traditional Medicare doesn't pay.
When shopping around from one health insurance company to another for your Medigap insurance, you may want to consider things other then cost. In some cases purchasing a plan from a given insurance provider gives you access to certain other Member benefits such as fitness and wellness programs.