One of biggest topics of conversation regarding Medicare Supplements is pricing. I never hear any complaints on the actual coverage itself because the supplements work extremely well! The U.S. government has standardized the coverage, so Plan G is Plan G across the board. The aspect that varies wildly is, of course, pricing.
Insurance companies usually use 1 of 3 pricing methods when setting premiums:
Attained Age: This is the most common method, and it means that each year when you “attain a new age,” your cost goes up. Companies that use this method generally have the most competitive pricing.
Issue Age: This is less common and means that your cost is set based on your age when you sign up. Rate increases based on your age are not allowed, but rates still increase because of inflation and other factors. “Issue Age” companies are usually priced higher up front, making them less competitive.
Community Rated: In this case, companies price premiums based on specific locations, so age doesn’t technically factor into premiums. This gets tricky because some insurance companies have a “diminishing discount” as you get older, which ends up acting as an age increase.
Seniors get bogged down in conflicting information about which pricing method is best, but all methods tend to shake out fairly evenly. The most important thing to focus on is keeping yourself healthy so that you can shop competitively if your premium increases and you decide to look for a new plan.
In case you are not familiar with the “market price” for a Medicare Supplement, I’ve included a sample from a competitive company. These prices are for seniors in Flower Mound (rates vary by zip code). Feel free to compare this to what you are paying now.
75022, non-tobacco, Plan G, Female / Male
Age 65 – $103 per month / $115 per month
Age 67 – $103 per month / $115 per month
Age 69 – $103 per month / $115 per month
Age 71 – $108 per month / $121 per month
Age 73 – $116 per month / $130 per month
Age 75 – $124 per month / $139 per month
Age 77 – $134 per month / $151 per month
Age 79 – $145 per month / $163 per month
Age 81 – $158 per month / $177 per month
If you’re married and live with your spouse, these rates can actually be 7% lower. I’m happy to help walk you through the process of pursuing a lower rate; it’s fairly painless, doesn’t cost you anything, and I do most of the heavy lifting! Remember, you can change your Medicare Supplement anytime during the year. Please give us a call at 800-750-2407 or feel free to stop by the office at 2604 Long Prairie Road, Suite 100 in Flower Mound.
God Bless.
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