Medicare may sometimes fall short on coverage and can be a financial burden to retirees. It is wise to look into Medicare Supplement Insurance to help ease the burden, and receive more coverage. Medicare Supplement is offered by private companies that are regulated by states. There are different policy premium rates by different companies, and it can be confusing.
Medicare Supplemental Insurance offers coverage for things that traditional Medicare does not cover. Once you begin paying premiums for a Medicare Supplement Insurance, you will have more coverage, and save more money. Competition between insurance companies is allowed, which is why there are different prices. There are three ways that companies calculate a premium rate.
The same monthly premium is usually charged to everyone, regardless of age. Someone 65 will pay the same price as someone who is 72. Premiums are not based on your age, and the only reason premiums may go up is because of inflation, never because of your age. However, state to state and community to community, insurance companies do not have to have the same rates.
For example, Mr. Halpert is 65 and buys a Medicare Supplement plan at $160 a month. Mr. Scott is 75 and buys the same plan as Mr. Halpert. He also pays $160 monthly because everyone pays the same price regardless of age.
Premium pricing is based on the age you are when you purchase a Medicare Supplement Insurance plan. The younger you are, then the lower your premium will initially be, and will not change as you get older.
Premiums may go up because of inflation and other factors, but not because of your age. Switching plans later in life may result in rates being higher than if they chose the same plan when they started.
For example, Mr. Halpert is 65 and purchases a Medicare Supplement plan, paying $140 a month. Mr. Scott is 75 and purchases the same plan as Mr. Halpert. But, because Mr. Scott is older, his monthly premiums are $180.
The last method of creating a premium is when premiums are based on your current age of when you first start the policy. The premium is low for younger buyers, age 65, but the rate goes up every year as you get older.
For example, Mr. Halpert is 65 and purchases a plan for $130 a month. The premium will go up each year, so at 66 it will cost him $136, at 67 it will be $142 and so on.
Now Mr. Scott is 75 and purchases the same plan as Mr. Halpert, but pays $170 a month. His premium is higher than Mr. Halpert’s because it is based on his current age. The premium will also go up each year, so at 73, it will cost him $176, at 74 it will be $182, and so on.
Costs of Medicare Supplement Plans can vary between insurance companies for the same coverage. It is important to compare rates from private insurers to find the most affordable price for the same coverage. EZ.Insure understands how difficult this process can be, so we make it easy for you. We will compare all policies around your area, and find you the most affordable Medicare Supplement plan, with the coverage you need. To compare rates and get different quotes, enter your zip code in the bar above. If you would like to speak to one of agents who are trained and knowledgeable for your region, call 855-220-1144, or email us at firstname.lastname@example.org. Even if you are renewing a Medicare Supplement plan during the open enrollment period, we can help find the best rates, since they are subject to change every year.