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 certain 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 with that for disabled beneficiaries, that is, those under age 65, as California mandates that insurance companies make Medigap policies available to them. While the state mandates only certain policy types, some companies also make other policy types available. (And be aware that the mandate applies only six months AFTER you get Part B, and even then waiting periods for pre-existing conditions may apply.)
Note that for both groups the information is given first for females and then for males. All this information comes from the California Department of Insurance website, www.insurance.ca/gov, which has more detailed information on these policies.
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 policy type. Please understand that the prices shown here and what you are quoted will vary because of how and how often you pay your premium, your exact age, whether you smoke, where you live in California, if it is a SELECT policy (that is, you are limited to a network of providers), etc., etc., so use these as guides rather than exact “matches.” (These happen to be based on the populous Los Angeles County area.) The dollar amounts shown below are the annual cost of the policies.
Medigap Policies – Females – Age 65
Policy A:
The lowest price available is $864, the highest is $5,323, and the average is $1,694.
This is the “basic” policy. Some 29 different companies offer these.
Policy B:
The lowest price available is $1,427, the highest is $4,915, and the average is $2,167.
On the whole, these cost about 28% more than Policy A. 19 different companies offer these.
Policy C:
The lowest price available is $1,655, the highest is $6,143, and the average is $2,551.
On the whole, these cost about 51% more than Policy A. 19 different companies offer these.
Policy D:
The lowest price available is $1,509, the highest is $4,500, and the average is $2,451.
On the whole, these cost about 45% more than Policy A. 13 different companies offer these.
Policy F:
The lowest price available is $1,629, the highest is $5,467, and the average is $2,428.
On the whole, these cost about 43% 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 $395, the highest is $1,422, and the average is $875.
On the whole, these cost about 48% less than Policy A. 7 different companies offer these.
Policy G:
The lowest price available is $1,461, the highest is $4,591, and the average is $2,434.
On the whole, these cost about 44% more than Policy A. 16 different companies offer these.
Policy K:
The lowest price available is $611, the highest is $954, and the average is $809.
On the whole, these cost about 52% less than Policy A. 5 different companies offer these.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $1,006, the highest is $1,855, and the average is $1,308.
On the whole, these cost about 19% less than Policy A. 7 different companies offer these.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $1,239, the highest is $1,901, and the average is $1,611.
On the whole, these cost about 5% less than Policy A. 3 different companies offer these.
This policy is very new.
Policy N:
The lowest price available is $911, the highest is $1,981, and the average is $1,550.
On the whole, these cost about 9% less than Policy A. 9 different companies offer these.
This policy is very new.
Medigap Policies – Males – Age 65
Policy A:
The lowest price available is $864, the highest is $6,064, and the average is $1,854.
This is the “basic” policy. Some 29 different companies offer these.
Policy B:
The lowest price available is $1,427, the highest is $5,480, and the average is $2,232.
On the whole, these cost about 20% more than Policy A. 19 different companies offer these.
Policy C:
The lowest price available is $1,655, the highest is $6,849, and the average is $2,622.
On the whole, these cost about 41% more than Policy A. 19 different companies offer these.
Policy D:
The lowest price available is $1,524, the highest is $5,018, and the average is $2,564.
On the whole, these cost about 38% more than Policy A. 13 different companies offer these.
Policy F:
The lowest price available is $1,629, the highest is $6,096, and the average is $2,522.
On the whole, these cost about 36% 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 $395, the highest is $1,422, and the average is $892.
On the whole, these cost about 52% less than Policy A. 7 different companies offer these.
Policy G:
The lowest price available is $1,461, the highest is $5,119, and the average is $2,526.
On the whole, these cost about 36% more than Policy A. 16 different companies offer these.
Policy K:
The lowest price available is $611, the highest is $956, and the average is $809.
On the whole, these cost about 56% less than Policy A. 5 different companies offer these.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $1,006, the highest is $1,855, and the average is $1,381.
On the whole, these cost about 26% less than Policy A. 7 different companies offer these.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $1,239, the highest is $1,901, and the average is $1,611.
On the whole, these cost about 13% less than Policy A. 3 different companies offer these.
This policy is very new.
Policy N:
The lowest price available is $911, the highest is $1,981, and the average is $1,550.
On the whole, these cost about 16% less than Policy A. 9 different companies offer these.
This policy is very new.
Disabled Beneficiaries Under Age 65 Females
(These are NOT available to beneficiaries entitled because of ESRD.)
Policy A:
The lowest price available is $1,067, the highest is $10,686, and the average is $3,132
This is the “basic” policy. Some 25 different companies offer these.
Policy B:
The lowest price available is $1,556, the highest is $9,876, and the average is $4,226.
On the whole, these cost about 35% more than Policy A. 18 different companies offer these.
Policy C:
The lowest price available is $1,730, the highest is $12,339, and the average is $4,982.
On the whole, these cost about 59% more than Policy A. 17 different companies offer these.
Policy D:
The lowest price available is $2,430, the highest is $7,776, and the average is $4,527.
On the whole, these cost about 45% more than Policy A. 5 different companies offer these.
Policy F:
The lowest price available is $1,746, the highest is $10,974, and the average is $4,551.
On the whole, these cost about 45% more than Policy A. 26 different companies offer these.
These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $692, the highest is $3,436, and the average is $2,082.
On the whole, these cost about 34% less than Policy A. 3 different companies offer these.
Policy G:
The lowest price available is $3,348, the highest is $5,406, and the average is $3,989.
On the whole, these cost about 27% more than Policy A. 5 different companies offer these.
Policy K:
The lowest price available is $1,112, the highest is $4,308, and the average is $2,303.
On the whole, these cost about 26% less than Policy A. 5 different companies offer these.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $1,756, the highest is $3,484, and the average is $2,649.
On the whole, these cost about 15% less than Policy A. 5 different companies offer these.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $4,152, the highest is $4,152, and the average is $4,512.
On the whole, these cost about 33% more than Policy A. Only 1 company offers this.
This policy is very new.
Policy N:
The lowest price available is $2,163, the highest is $3,900, and the average is $3,056.
On the whole, these cost about 2% less than Policy A. 4 different companies offer these.
This policy is very new.
Disabled Beneficiaries Under Age 65 Males
(These are NOT available to beneficiaries entitled because of ESRD.)
Policy A:
The lowest price available is $1,067, the highest is $11,915, and the average is $3,242
This is the “basic” policy. Some 25 different companies offer these.
Policy B:
The lowest price available is $1,556, the highest is $11,012, and the average is $4,355.
On the whole, these cost about 34% more than Policy A. 18 different companies offer these.
Policy C:
The lowest price available is $1,730, the highest is $13,757, and the average is $5,149.
On the whole, these cost about 59% more than Policy A. 17 different companies offer these.
Policy D:
The lowest price available is $2,794, the highest is $7,776, and the average is $4,559.
On the whole, these cost about 42% more than Policy A. 5 different companies offer these.
Policy F:
The lowest price available is $1,746, the highest is $12,236, and the average is $4,695.
On the whole, these cost about 45% more than Policy A. 26 different companies offer these.
These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $692, the highest is $3,436, and the average is $2,163.
On the whole, these cost about 33% less than Policy A. 3 different companies offer these.
Policy G:
The lowest price available is $3,348, the highest is $5,406, and the average is $3,989.
On the whole, these cost about 23% more than Policy A. 5 different companies offer these.
Policy K:
The lowest price available is $1,112, the highest is $4,308, and the average is $2,303.
On the whole, these cost about 29% less than Policy A. 5 different companies offer these.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $1,756, the highest is $3,484, and the average is $2,649.
On the whole, these cost about 18% less than Policy A. 5 different companies offer these.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $4,152, the highest is $4,152, and the average is $4,512.
On the whole, these cost about 28% more than Policy A. Only 1 company offers this.
This policy is very new.
Policy N:
The lowest price available is $2,163, the highest is $3,900, and the average is $3,056.
On the whole, these cost about 6% less than Policy A. 4 different companies offer these.
This policy is very new.
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