5 tips for buying Medicare supplemental insurance

Medicare  insurance

5 tips for buying Medicare supplemental insurance

Once you reach 65 and qualify for Medicare, you will need to make another important decision.

You may want to choose to enroll in a Medicare Advantage (MA) plan. Nearly one-third of Medicare applicants choose a master plan. In some states like California, it is readily available. However, in other states, there are some MA options.

One of the other popular options is the Medicare Supplement Plan. They are sometimes referred to as Medigap Plans and we will use these two interchangeable terms. Approximately 15 million Americans currently have a Medigap plan that provides complete freedom to see which medical professional accepts Medicare.

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We will focus on many important facts about Medigap insurance that will help you get the best coverage at the most affordable cost. In fact, shared information can help you save big bucks. It is always good.

But saving money today is not the only reason to read the tips shared here. It can also save you heart disease in the future. This is because when you choose the Medigap plan option today, it may be an irreversible option that limits your future.

Tip # 1: Don't overpay. Why pay twice for the same plan?

Medigap insurance rates vary. Prices are usually set by the province and usually find one company that charges twice what other companies charge.

According to the 2020 Medicare Insurance Price Index released by the American Medicare Insurances Association, a 65-year-old woman from Chicago can pay up to $ 92 a month or up to $ 234 a month for similar coverage. The price index indicates the lowest and highest price for Medigap Plan G for nearly 100 cities nationwide.

Not a single company has always provided the lowest cost. And there is not a single company that is always the most expensive according to the price index. In fact, in some cases, the company with the lowest cost for men has never been the lowest for women. Frustrating? Not really, it just means asking the “right” questions.

Tip # 2: Shop for price stability

Insurance companies can raise rates. A policy that looks cheap today can be expensive tomorrow.

Some insurers are new to the Medigap business and may have no real experience in setting their rates. Others may offer lower premiums as a way to get more initial sales.

Sometimes this leads to higher average rate increases in the coming years. For this reason, you will want to compare both current costs as well as price stability.

Tip # 3: Discounts can be added

Today, many Medigap insurance companies offer wedding and / or home discounts. Not all. However, discounts can range from five to 14 percent. Saving can add up to hundreds of dollars a year. And since you are likely to live another 10 or 20 years, you are talking about real money - so do not miss this one.

Tip # 4: Take advantage of your savings and points

Some insurance companies will give you a discount when setting up automatic payments. Some will offer discounts when you pay annually. Some will allow you to collect payments from a credit card. You can see where we are going.

Let’s say the monthly premium for Medicare supplements is $ 300. Starting at age 65 and paying 20 years equals a $ 72,000 premium. If you are married, that is double. A credit card that offers a 2 percent discount means you can save about $ 3,000. If your credit card provides flying points, it will get some good credit.

Tip # 5: The Easy Way to Compare Shopping

Sometimes you hear the saying, that if you work as your lawyer or doctor, you are stupid to a client. Choosing the right Medicare plan can be very stressful.

There is nothing wrong with calling any of the dozens of 800 numbers fighting for your attention and your business. But often they can represent only one company or have a specific preference.

For this reason, it is generally helpful to compare your options and recommendations by searching for a local Medicare insurance agent. Some will only focus on one Medicare supplement but now offers many comprehensive options including Medicare Advantage.

It is nice to have a neutral agent in your back pocket when you have questions. The National Directory of Health Insurance Agents lists around 1,000 professionals by postal code. Access is freely available, and perhaps best of all it is completely private. You can see their information without having to enter any information. 

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