The costs (also known as premiums) of Medigap plans can vary quite a bit – the premiums carriers charge can be quite different, even if you’re comparing the exact same plan. The initial premium for your plan as well as the rate increases that you’ll encounter over time are determined by the amount of claims a carrier pays in the previous year. It’s important to review your plan each year to make sure you’re still getting the best deal available to you.
The cost can also depend on whether the carrier does any of the following:
- Uses medical underwriting or applies a different premium when you’re not in your open enrollment period (or have a guaranteed-issue right)
- Applying for a Medicare SELECT supplement plan that requires you to use certain providers – your premium may be less under this type of Medigap plan.
- Offers discounts – e.g. paying annually as opposed to monthly, paying electronically rather than by check, or having multiple policies.
- Offers a high-deductible plan F. These plans require you to pay the deductibles, coinsurance, and copayments (not paid by Medicare) first before your plan will start paying benefits.