Medigap Policies Available in Texas

I am doing an extensive analysis of the Medigap (Medicare supplement) policies currently available to Medicare beneficiaries. This is because the structure of new policies available to beneficiaries changed last June, and by now there is enough information to give some guidance on both the availability and prices of the newly structured policies. The full analysis will take me quite awhile, but I already producing some helpful information for some states, and it makes sense to begin sharing this now rather than waiting until my full analysis is complete.

There is no need to go into explaining the new structure; this is all spelled out in Managing Your Medicare, on page 157. And even better, you can access, thorough the CD that comes with the book, a “2011 Medigap Standard Policies Worksheet” to help guide you through the process of selecting a Medigap policy during this current year. (Click on the “check for any updated forms” button on the introduction screen to the CD.)

But what I have available here is information, first, for those age 65, which is when most beneficiaries get a Medigap policy, on the number of policies available, the lowest priced one available, the highest priced one available, and the average price. Even better, this information is given for each policy type. Also, there is a quick comparison of the average price of each policy type to type “A”, the “basic” policy, so you can easily determine roughly how much more or less the policy type you are looking at compares to the basic one, or indeed, to any other policy type. All this is harder to explain than it is to show.

The information for beneficiaries age 65 is then followed by that for disabled beneficiaries (that is, those under age 65) as Texas mandates that insurance companies make one Medigap policy type (type A) available to them. All this information comes from the Texas Department of Insurance website, which has more detailed information on the policies available.

Again, remember that for each policy type, the benefits are exactly the same no matter who sells it, and you should aggressively look for the best price. You will be shocked by the difference in prices for the same thing. Please understand that the prices shown here and what you are quoted will vary somewhat because of how and how often you pay your premium, whether you smoke, where you live in Texas, etc., etc., so use these as guides rather than exact “matches.” The dollar amounts shown below are the annual cost of the policies. First we show all the information on standard fee-for-service policies, and then, the information on SELECT policies.


Standard Fee-for-Service Medigap Policies

Policy A:
The lowest price available is $766, the highest is $3,486, and the average is $1,427.
This is the “basic” policy. Some 32 different companies offer these.

Policy B:
The lowest price available is $1,051, the highest is $2,723, and the average is $1,728.
On the whole, these cost about 21% more than Policy A. 14 different companies offer these.

Policy C:
The lowest price available is $1,200, the highest is $2,533, and the average is $1,807.
On the whole, these cost about 27% more than Policy A. 4 different companies offer these.

Policy D:
The lowest price available is $1,081, the highest is $2,814, and the average is $1,801.
On the whole, these cost about 26% more than Policy A. 7 different companies offer these.

Policy F:
The lowest price available is $1,191, the highest is $3,486, and the average is $1,948.
On the whole, these cost about 34% more than Policy A. 29 different companies offer these.
These cover all Medigap benefits and are popular.

Policy F – High Deductible:
The lowest price available is $353, the highest is $1,384, and the average is $690.
On the whole, these cost about 52% less than Policy A. 11 different companies offer these.

Policy G:
The lowest price available is $1,049, the highest is $3,113, and the average is $1,628.
On the whole, these cost about 14% more than Policy A. 19 different companies offer these.

Policy K:
The lowest price available is $574, the highest is $1,482, and the average is $928.
On the whole, these cost about 35% less than Policy A. 9 different companies offer these.
This is the 50% catastrophic policy.

Policy L:
The lowest price available is $922, the highest is $2,085, and the average is $1,345.
On the whole, these cost about 35% less than Policy A. 8 different companies offer these.
This is the 75% catastrophic policy.

Policy M:
The lowest price available is $946, the highest is $2,132, and the average is $1,481.
On the whole, these cost about 4% more than Policy A. 4 different companies offer these.
This policy is very new.

Policy N:
The lowest price available is $828, the highest is $2,422, and the average is $1,432.
On the whole, these cost about the same as Policy A. 13 different companies offer these.
This policy is very new.


SELECT Medigap Policies

These policies require you to go to physicians and providers which are in your Medigap insurer’s network. Note that as only a handful of these are offered, I have not done “type-to-type” comparisons, as this information would not be very helpful.

Policy A:
The lowest price available is $1,487, the highest is $1,693, and the average is $1,590.
This is the “basic” policy. Only 1 company offers this.

Policy B:
The lowest price available is $1,447, the highest is $2,237, and the average is $1,749
On the whole, these cost about 21% more than Policy A. 2 different companies offer these.

Policy C:
None available.

Policy D:
The lowest price available is $987, the highest is $2,259, and the average is $1,611.
2 different companies offer these.

Policy F:
The lowest price available is $1,099 the highest is $2,919, and the average is $1,705.
5 different companies offer these.
These cover all Medigap benefits and are popular.

Policy F – High Deductible:
None available.

Policy G:
The lowest price available is $1,051, the highest is $2,911, and the average is $1,625.
4 different companies offer these.

Policy K:
The lowest price available is $612, the highest is $924, and the average is $782.
2 different companies offer these.
This is the 50% catastrophic policy.

Policy L:
The lowest price available is $1,056, the highest is $1,296, and the average is $1,176.
Only 1 company offers this.
This is the 75% catastrophic policy.

Policy M:
None available.

Policy N:
The lowest price available is $960, the highest is $1,164, and the average is $1,062.
Only 1 company offers this.
This policy is very new.


Disabled Beneficiaries Under Age 65
(These are NOT available to beneficiaries entitled because of ESRD.)

Policy A is the only one offered.
The lowest price available is $1,355, the highest is $16,324 and the average is $4,257.
29 different companies offer these.

There are no SELECT policies offered to this group.