Weiss Research: Medigap Rates Vary as Much as 1,316{57afd372ef552335ba870edf523b8e4a4ddf98dad7cf21c72091c800f1bfac05}

Weiss research says that Medigap rates, on the same plans, can vary by up to 1,316{57afd372ef552335ba870edf523b8e4a4ddf98dad7cf21c72091c800f1bfac05}.

We, at the SeniorSavingsNetwork, often save clients $1,000 per year or more, simply by shopping their existing market for all of the companies available, and there is quite a difference in the rates.

From Weiss:

Medigap policies help senior citizens cover the costs for medical care beyond those covered by Medicare itself.   Plan types range from A, the basic benefit plan, through Plan N.  The benefits within each plan are mandated by the government.

In analyzing more than 5.6 million premium rates among more than 165 insurers offering Medigap insurance in 2011, Weiss found that premium rates continue to vary dramatically among all Medigap plans.  Rates for Plan A range from a minimum of $439 to a maximum of $5,776 for a 65-year-old male. The broad ranges in premium rates for Plans A through N for a 65-year-old male are illustrated below:

 

Weiss Ratings senior financial analyst Gavin Magor commented: “For 20 years Medigap rates have varied due to regional differences in pricing methodologies, state regulations, and the cost of health care.  While we expect these differences in pricing among plans and across regions, we find that there is no justification for such wide price differences for exactly the same product in the same area.  Consumers who research their options are likely to find opportunities for significant cost savings when purchasing Medigap insurance.”

Some examples of dramatic pricing differences include:

  • In Florida, Plan C costs $4,647 with Humana Health Insurance Company of FL, but only $2,880 with State Farm Mutual Automobile Insurance Company, representing a 61{57afd372ef552335ba870edf523b8e4a4ddf98dad7cf21c72091c800f1bfac05}  difference in cost.
  • In California, the plan would cost $5,133 with United Teacher Associates Insurance Company, which is three times more than the $1,693 with Globe Life & Accident.
  • In Maine, premiums for Plan F vary from a low of $1,916 with Globe Life & Accident to a high of $3,590 with Humana Insurance Company, representing an 87{57afd372ef552335ba870edf523b8e4a4ddf98dad7cf21c72091c800f1bfac05} difference in cost.
  • Plan F rates in Missouri run from $955 with Old Surety Life Insurance Company to $3,002 with Standard Life and Accident Insurance Company, a 314{57afd372ef552335ba870edf523b8e4a4ddf98dad7cf21c72091c800f1bfac05} difference.

Source: http://www.weissratings.com/news/ins_hmo/111010-medigap-rates-vary.aspx

 

To compare Medicare Supplements rates, call us at 1-800-729-9590 to get the best price on Medigap.

Weiss Research: Medigap Rates Vary as Much as 1,316{57afd372ef552335ba870edf523b8e4a4ddf98dad7cf21c72091c800f1bfac05} Read More »