Making the best choice: How to evaluate Medigap plans for 2024
Comparing Medigap premiums shows that your monthly premium for Medicare supplement plans does not only depend on the Medigap policy you choose, but also on the insurance company you buy it from. In fact, you may notice significant differences in supplemental plan premiums for 2024, because each insurer is free to set its own premium for each Medigap policy the company offers.
Medicare supplement plans (also called “Medigap”) are standardized and regulated by the federal government, and sold by private insurers in all states except MA, MN, WI. Each plan has a different set of benefits, so you as Medicare beneficiary may select from a wide array of choices the plan that best matches your individual health care needs. A private insurance company that wants to offer one or several of those plans in a state must be approved by Medicare. Each plan with the same letter – no matter which insurer is offering it – must have the exact same benefits, deductible, coinsurance and co-payments.
Medigap plans sold in 2024 are labeled A, B, D, G, K, L, M and N. Some plans have an out-of-pocket limit (Plans K and L). Plan N is the most inclusive plan.
You need to understand how the insurance companies calculate their premium as it will have an influence on future premium increases. Ask your insurer which of the following three methods is used to price the premium for the plan you intend to join:
- Community-rated (“no age”): Every member of the plan pays the same premium, independent of age.
- Issue-age-rated (“entry age”): The premium is based on your age at the time when you buy the policy. This means, if you purchase it at age 65, your premium will be lower than if you join the plan at age 77.
- Attained-age-rated (“current age”): The premium is tied to your current age and goes up as you get older.
Please note that in all three cases, premiums may go up due to other factors such as inflation!
The premium of your Medigap policy for 2024 may also depend on whether the plan provider offers discounts (e.g. for women, non-smokers, multiple policies, pre-payment for a whole year, or other factors).
Be aware, that the insurer may charge you a higher premium, if you are not joining the plan during your Medigap open enrollment period, and are not protected by a ‘guaranteed issue right’.
In some states, Medicare SELECT policies are sold that typically come with lower premiums, but may require you to use specific health care providers.
So invest a little time and thoroughly compare Medicare Supplement plan premiums for 2024.
If you want to find out which insurance companies offer a plan in your zip code, and compare premiums online, you may use the Medicare Plan Finder at Medicare.gov. You may also contact the insurance providers directly, or use the services of a licensed health insurance broker.
