Medicare Supplement Plans are sold by private companies. They are at the sole liberty to decide how they want to price or rate there Medigap policy. But you also have the right to question the company as to how they are pricing these policies. However, if they fulfil the States regulations then there is not much that you can do about the pricing of the policies. However, you, as a consumer, have the right to compare the price offered by different companies and choose the best Medigap policies among them.
Different ways of pricing
There are basically three ways how a private insurance company can set a price for Medicare Supplemental plans which are as follows:-
- Community-rated- it is also called no age-rated. As the name suggests, this type of pricing method does not consider your age while setting the price of a policy. What it implies for you is that the difference in the price of the Medigap policies which is offered by different companies is due to market inflation or any other factor but your age has no role to play.
- Issue age-rated- it is also called entry age-rated. The basic login underlying this method is that it takes into account the age at which you buy the policy. At a given point of time if two person of different age buys the same policy then the younger person will get that policy at a cheaper rate than the older person.
- Attained age-rated- under this policy you will have to pay very less premium when you buy Medicare Supplement Plans but this premium goes up as you grow old. This is the cheapest policy when you start but tend to become the most expensive ones as time passes.
Other factors on which the cost depends
There are several other factors on which the cost of your Medigap policiesdepends such as:-
- Discounts which are offered when you buy a supplement plan. Such discounts may include discounts for non-smokers, discounts for married couples and discounts for women etc.
- If your company sells Medicare Select policies then you can acquire such policy which will make your premium less.
- If you acquire high deductible option while buying Medigap Plan F then you will have to pay two thousand two hundred and forty dollars up front to covers co-payments, deductibles and coinsurance, which is not covered by Medicare policy, before your MedicareSupplement Plans covers anything which would certainly increase your costs!