What determines the cost of Medigap insurance?

It is pretty to tricky to figure out what you will be paying for your Medicare Parts A, B, and D. Just when you think you are covered, you find that Medicare doesn’t cover everything. That’s when Medigap sets in to fulfill the gap.

If you are planning for retirement, it is crucial to get an estimate of the cost. There are a number of factors that influence the cost of your Medigap insurance. Let’s have a look at them:

Type of Plan

There are 10 different plans to choose from and one high deductible option. When it comes to the plan with the highest premium, Medigap Plans F and G are the most costly. This is because they offer the most coverage and you have to spend very less from your own pocket.

If you want a plan with a lower monthly premium and you don’t mind paying for your medical expenses, then Plan K and N may be right for you. They have lower premiums because they come with fewer benefits.

It is not uncommon for older adults to get a Medicare Supplement Plans for 2019 to avoid high costs of extra medical bills.

Demographic information

The monthly rate or premium that you will pay for your Medicare Supplement Plan is also affected by your age, gender, tobacco usage and the time you enroll for the plan.  If you are a female of 65 years old with no history of tobacco use, you will get a lower rate than a male of the same age. You may also get a lower rate if you live with someone who has the Medicare Supplement Policy.

Zip code

Your zip code also influences how much you are going to pay for your Medigap. Hence why there are dramatic differences in the prices in some states versus the others.

Let’s suppose you live in California. The cost of your Medigap policy is going to be higher. Here is a breakdown:

  • The Plan F costs $169 to $190 per month
  • Plan G costs $142 to $172 per month
  • Plan N costs $113 to $150 a month

All the beneficiaries must realize that it is not just the Medicare premiums that you have to pay for when you are planning your retirement. You must know that Medicare does not provide for your long-term care. You will have to plan for it privately. You can purchase a long-term care policy for that purpose or use personal funds to provide for the expenses.

Just like that, there are lots of care and equipment that Medicare does not pay for. That’s because there are stipulations and requirements that you must meet for things to be covered.  Your hearing, vision or dental checkups are not covered either. Medigap pays for the treatment of injuries but it does not pay for teeth cleaning and eye exams.