Posted on September 25, 2018
Medicare Supplement Plans: Avoiding the Pitfalls
Generally, your gender, age, your zip code & if you consume tobacco factor into the amount you’ll be paying for the Medicare Supplement plan. The fact is, a few individuals end up paying way more amount as compared to others to benefit from the same coverage. So, you don’t want to depend on the words of your insurance company. Rather, know how everything works so that you get the best price available for your coverage.
Supplemental insurance plans are divided into 10 unique packages starting from letter A through N. Meaning in order to change your benefits, you’ll need to pick a plan with a new letter.
The insurance agencies do charge their own prices for each of these plans. So, it’s important that you get the quotations from a number of companies to elect the most ideal one. This is where online websites come in handy. They offer estimates on plans from a number of companies in addition to offering personal assistance for comparing each of these plans.
Medicare supplement plans have different prices depending on 3 unique models. So, even if you pick the lowest one, it might not benefit you as you expected since you’ll have less likelihood to swap the plans in case your health declines over time. When a person turns 65, he/she is guaranteed to get the regular rate without any exclusions or increase for current health problems through an open enrollment period. However, the most economical coverage when you reach the age of 65 might not offer the best price 10 years later.
The pricing structure that increases monthly premiums depending on the person’s age is called as Attained Age Rated. It might seem tempting at first since it actually does provide economical rates. However, it can be a big risk on your part since the premium tends to rise not only depending on the inflation rate but also because you grow older day by day.
Another pricing structure is mentioned as Issue Age Rated, however, it is not that common. In this, the pricing is dependent upon the person’s age when he/she applies for the plan and the premium don’t rise simply because the person gets older. Although the rates might rise as a result of inflation.
A 3rd pricing structure seems to be quite popular since it isn’t based on your age. Rates can remain unchanged for everybody in a designated location irrespective of their gender, age or even in case they eat tobacco. The premium may start out higher than the previous pricing models though.
It might not be easy to know which pricing structure is applied within your locality. Finding a broker who is ready to assist can definitely help.