Medigap Costs & Prices Overview

You will find that there can be a lot of fluctuation in Medigap policies. The premiums associated with these may vary widely between insurance companies even though they likely offer similar services. When you are looking for Medigap policies, you need to do a proper comparison so that you can compare similar policies and their pricing structure.

For example, if you are looking at Medigap Plan C from one insurance company, make sure that you are actually comparing it with Plan C coverage from the other insurance providers. This guide is not able to actually disclose the costs of different Medigap policies, but you can easily access this information by contacting the appropriate insurance companies or by contacting your State Health Insurance Assistance Program.

Alternatively, you can find which local insurance companies offer Medigap policies by going to medicare.gov and then selecting the “Compare Health Plans and Medigap Policies in Your Area” feature. There are several factors that can affect the cost of the Medigap policy which may include one of the following:

– You may be able to find discounts on the policy. These are usually offered for women, non-smokers, and married couples or they also can relate to how you pay for the policy. If you elect to pay annually or via electronic funds transfer, it will alleviate paperwork for the company, so they may give you a discount.

– Your premium may be affected if the insurance company uses medical underwriting or uses differing premiums for those without a guaranteed issue right.

– If your insurance company offers Medicare SELECT policies, they may require you to purchase from a short list of providers. If this is the case, you may have a smaller premium when buying from one of these providers.

– Also, your pricing may vary if your insurer uses the high deductible option for Medigap Plans F and J. Keep in mind, however, that Plan J will no longer be available after May 31, 2010. If you elect to use the high deductible option, you will be responsible for the first $2000 in Medicare covered costs that you incur. Also, if you want foreign travel emergency services, there will be another $250 deductible. Finally, if you bought your plan before January 1, 2006 and you still have prescription drug benefits, you will have another $250 deductible that applies to this.