Finding Supplemental Rates

Step-by-step Guide to Finding Medigap Rates

Most people who have the original Medicare need supplemental insurance also. Medigap is one option available with several different plans. Each plan is different so it is important to take an inventory on medication costs, pre-existing conditions, future expectations for medical costs and even how much foreign travel you may be planning to do.

Review each Medigap plan carefully. You are only allowed one policy per person. After you have picked a plan, you cannot change it for twelve months. If you decide to drop coverage you have to wait until the next enrollment period to change policies.

Next you would have to find out which plans are available in your area. The State Health Insurance Assistance Program (SHIP) in your state provides information and one-to-one counseling to people with Medicare.

Comparing Insurance Companies

It is important to carefully compare insurance companies. There may be large price differences especially with premiums. One reason for the price fluctuation is because of the rating methods used by each company. There are three ways companies rate insurance.

• Attained-age-rated policies are usually cheaper at age 65 but prices increase automatically as you age.
• Issue-age-rated policies charge based on age but does not increase with age.
• Community-rated policies charge everyone the same who live in your area no matter what age.

Issue and Community rated policies may be a good choice because they will cost less as you get older. Most premiums will increase due to some extent due to increased health care costs.

Next you may want to see if the insurance company has arranged to file Medigap claims automatically with Medicare. You may also want to check with your state insurance department for complaints and check independent rating systems to make sure it is stable. Companies with an "A" or better rating are a good choice.

Finally after comparing Medigap plans and insurance companies, carefully sort through all the information before making a decision.