Costs

Like almost all insurance plans, Medicare Supplement policies do require premium payments.

Because Medigap plans are offered through private insurance companies, the costs associated with each plan may differ. For example, a Medigap Plan M you buy in Boston may not cost the same as a Medigap Plan M you buy in Laredo, but the coverage would be the same.

Each private insurance company offering Medicare Supplement plans can set its own plan premiums using one of these rating systems:

• Community-rated: Each beneficiary is charged the same monthly premium, regardless of age. These premiums will not increase as you age, but may increase over time as a result of inflation.
• Issue-age-rated: The premium cost of these plans is based on your age when you first buy the Medigap policy. In general, premiums are lower for younger buyers. These premiums will not increase as you get older, but may increase as a result of inflation.
• Attained-age-rated: Premiums are set based on your current age and increase as you get older. Premiums are lower for younger buyers but increase over time.

Some factors that might affect the costs of a Medigap plan:

• Some insurance companies may offer discounts to women, people who are married, and non-smokers.
• Insurance companies might give discounts to those who pay yearly, or who pay their premiums using electronic funds transfer.
• You may be able to purchase a high-deductible option for Medigap Plan F, which might offer a lower premium, but requires you to pay a substantial deductible before the plan begins its coverage.
• If you enroll in a Medicare SELECT plan (a type of Medigap policy that may limit you to using doctors in the plan’s network), you might have a lower premium.

Besides your Medigap plan premium, you still need to pay your Original Medicare premium(s) as well; Medigap doesn’t cover your Medicare Part A or Part B premium. If you worked at least 10 years while paying Medicare taxes, Part A is premium-free. But most beneficiaries pay a monthly Part B premium.

Accepting Providers

Any doctor or medical facility that accepts Medicare will accept Medicare Supplement Insurance.

Plan Renewal

Medicare Supplement enrollees are guaranteed renewal each year unless the application contained errors or the premium is unpaid. The benefits in each plan remain the same each year.

Key Reminder

A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you’ll each have to buy separate policies.