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. In addition, where one or more SELECT policies is available, I include information on these. Recall that these Medigap policies require you to go to physicians and providers which are in the Medigap insurance company’s network of providers; on the other hand, they may be a little cheaper than non-SELECT policies.
You should understand that I have draw information for the prices in Hillsboro County as this is somewhat representative of the state of Florida as a whole. Prices are substantially higher if you live in the Miami area; if you live in Walton County they are the same or a bit less. The information for beneficiaries age 65 is then followed by that for disabled beneficiaries (that is, those under age 65) as Florida law mandates that insurance companies make one Medigap policies available to them. All this information comes from the Florida Office of Insurance Regulation website, www.floir.com, 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. It is interesting to note, that for beneficiaries age 65, there are not huge differences in the prices of Medigap policies as there are in other states. (This is not true for beneficiaries under age 65.) 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 Florida, etc., etc., so use these as guides rather than exact “matches.” The dollar amounts shown below are the annual cost of the policies. And note that in some cases more policies are available than are noted here, but are available only to narrow groups, so I have not included them.
Medigap Policies Females, Age 65
(Note that the prices for these will be about 15% higher at age 70, and about 33% higher at age 75.)
Policy A:
The lowest price available is $1,270, the highest is $1,956, and the average is $1,657.
This is the “basic” policy. Some 25 different policies are available. No SELECT “A” policies are available.
Policy B:
The lowest price available is $1,712, the highest is $2,604, and the average is $2,036.
On the whole, these cost about 23% more than Policy A. 17 different policies are available.
One SELECT policy ($1,507) is also available.
Policy C:
The lowest price available is $1,971, the highest is $2,717, and the average is $2,323.
On the whole, these cost about 36% more than Policy A. 17 different policies are available.
Four SELECT policies are also available; the lowest price is $1,635, the highest is $2,451.
Policy D:
The lowest price available is $1,813, the highest is $2,435, and the average is $2,159.
On the whole, these cost about 26% more than Policy A. 12 different policies are available.
Three SELECT policies are also available; the lowest price is $1,624, the highest is $2,188.
Policy F:
The lowest price available is $1,982, the highest is $2,896, and the average is $2,362.
On the whole, these cost about 38% more than Policy A. 25 different policies are available.
Five SELECT policies are also available; the lowest price is $1,647, the highest is $2,458.
These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $624, the highest is $1,020, and the average is $839.
On the whole, these cost about 51% less than Policy A. 10 different policies are available.
No SELECT “F – High Deductible” policies are available.
Policy G:
The lowest price available is $1,825, the highest is $2,471, and the average is $2,154.
On the whole, these cost about 26% more than Policy A. 14 different policies are available.
Two SELECT policies are also available; the lower price is $1,683, the higher is $1,995.
Policy K:
The lowest price available is $816, the highest is $1,274, and the average is $1,064.
On the whole, these cost about 38% less than Policy A. 4 different policies are available.
No SELECT “K” policies are available.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $1,227, the highest is $1,879, and the average is $1,545.
On the whole, these cost about 10% less than Policy A. 6 different policies are available.
No SELECT “L” policies are available.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $1,777, the highest is $2,116, and the average is $1,973.
On the whole, these cost about 15% more than Policy A. 7 different policies are available.
One SELECT policy ($1,613) is also available.
This policy is very new.
Policy N:
The lowest price available is $1,485, the highest is $2,325, and the average is $1,857.
On the whole, these cost 8% more than Policy A. 15 different policies are available.
No SELECT “N” policies are available.
This policy is very new.
Medigap Policies Males, Age 65
Note: These tend to be just a little more expensive than those for females, but many companies sell their policies for the same price, and, almost without exception, the lowest price available for each policy type for a female is also available to a male. The prices for these will be about 15% higher at age 70, and about 33% higher at age 75.
Policy A:
The lowest price available is $1,270, the highest is $2,213, and the average is $1,784.
This is the “basic” policy. Some 25 different policies are available.
No SELECT “A” policies are available.
Policy B:
The lowest price available is $1,712, the highest is $2,996, and the average is $2,188.
On the whole, these cost about 23% more than Policy A. 17 different policies are available.
One SELECT policy ($1,507) is also available.
Policy C:
The lowest price available is $1,971, the highest is $3,025, and the average is $2,471.
On the whole, these cost about 39% more than Policy A. 17 different policies are available.
Four SELECT policies are also available; the lowest price is $1,635, the highest is $2,640.
Policy D:
The lowest price available is $1,813, the highest is $2,858, and the average is $2,334.
On the whole, these cost about 31% more than Policy A. 12 different policies are available.
Three SELECT policies are also available; the lowest price is $1,624, the highest is $2,357.
Policy F:
The lowest price available is $1,982, the highest is $3,333, and the average is $2,537.
On the whole, these cost about 42% more than Policy A. 25 different policies are available.
Five SELECT policies are also available; the lowest price is $1,647, the highest is $2,647.
These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $717, the highest is $1,173, and the average is $938.
On the whole, these cost about 47% less than Policy A. 10 different policies are available.
No SELECT “F – High Deductible” policies are available.
Policy G:
The lowest price available is $1,825, the highest is $2,869, and the average is $2,345.
On the whole, these cost about 31% more than Policy A. 14 different policies are available.
Two SELECT policies are also available; the lower price is $1,934, the higher is $2,268.
Policy K:
The lowest price available is $816, the highest is $1,274, and the average is $1,083.
On the whole, these cost about 39% less than Policy A. 4 different policies are available.
No SELECT “K” policies are available.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $1,227, the highest is $1,879, and the average is $1,588.
On the whole, these cost about 11% less than Policy A. 6 different policies are available.
No SELECT “L” policies are available.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $1,777, the highest is $2,404, and the average is $2,158.
On the whole, these cost about 21% more than Policy A. 7 different policies are available.
One SELECT policy is available; it costs $1,613.
This policy is very new.
Policy N:
The lowest price available is $1,485, the highest is $2,676, and the average is $2,041.
On the whole, these cost 14% more than Policy A. 15 different policies are available.
No SELECT “N” policies are available.
This policy is very new.
Disabled Female Beneficiaries Under Age 65(These are NOT available to beneficiaries entitled because of ESRD.)
Policy A:
The lowest price available is $2,928, the highest is $9,489, and the average is $4,211.
This is the “basic” policy. Some 23 different policies are available. No SELECT “A” policies are available.
Policy B:
The lowest price available is $3,492, the highest is $5,259, and the average is $4,259.
On the whole, these cost about 1% more than Policy A. 15 different policies are available.
One SELECT policy ($3,706) is also available.
Policy C:
The lowest price available is $4,069, the highest is $12,572, and the average is $5,990.
On the whole, these cost about 42% more than Policy A. 15 different policies are available.
Four SELECT policies are also available; the lowest price is $3,861, the highest is $5,945.
Policy D:
The lowest price available is $3,900, the highest is $11,681, and the average is $5,704.
On the whole, these cost about 35% more than Policy A. 10 different policies are available.
Three SELECT policies are also available; the lowest price is $3,992, the highest is $5,306.
Policy F:
The lowest price available is $3,598, the highest is $12,659, and the average is $5,651.
On the whole, these cost about 34% more than Policy A. 23 different policies are available.
Five SELECT policies are also available; the lowest price is $3,483, the highest is $5,961.
These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $1,692, the highest is $2,636, and the average is $2,111.
On the whole, these cost about 50% less than Policy A. 8 different policies are available.
No SELECT “F – High Deductible” policies are available.
Policy G:
The lowest price available is $3,449, the highest is $5,064, and the average is $4,314.
On the whole, these cost about 2% more than Policy A. 12 different policies are available.
Two SELECT policies are also available; the lower price is $3,069, the higher is $3,791.
Policy K:
The lowest price available is $1,926, the highest is $2,796, and the average is $2,435.
On the whole, these cost about 42% less than Policy A. 4 different policies are available.
No SELECT “K” policies are available.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $2,898, the highest is $4,125, and the average is $3,403.
On the whole, these cost about 19% less than Policy A. 6 different policies are available.
No SELECT “L” policies are available.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $3,516, the highest is $10,266, and the average is $5,765.
On the whole, these cost about 37% more than Policy A. 7 different policies are available.
One SELECT policy is available; it costs $3,966.
This policy is very new.
Policy N:
The lowest price available is $3,066, the highest is $10,223, and the average is $4,788.
On the whole, these cost 14% more than Policy A. 13 different policies are available.
No SELECT “N” policies are available.
This policy is very new.
Disabled Male Beneficiaries Under Age 65 (These are NOT available to beneficiaries entitled because of ESRD.)
Policy A:
The lowest price available is $3,137, the highest is $10,220, and the average is $4,478.
This is the “basic” policy. Some 23 different policies are available.
No SELECT “A” policies are available.
Policy B:
The lowest price available is $3,640, the highest is $6,051, and the average is $4,505.
On the whole, these cost about 1% more than Policy A. 15 different policies are available.
One SELECT policy ($3,706) is also available.
Policy C:
The lowest price available is $4,069, the highest is $13,540, and the average is $6,303.
On the whole, these cost about 41% more than Policy A. 15 different policies are available.
Four SELECT policies are also available; the lowest price is $3,861, the highest is $6,403.
Policy D:
The lowest price available is $3,900, the highest is $12,512, and the average is $6,056.
On the whole, these cost about 35% more than Policy A. 10 different policies are available.
Three SELECT policies are also available; the lowest price is $3,992, the highest is $5,714.
Policy F:
The lowest price available is $4,078, the highest is $13,634, and the average is $5,992.
On the whole, these cost about 34% more than Policy A. 23 different policies are available.
Five SELECT policies are also available; the lowest price is $3,891, the highest is $6,420.
These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $1,946, the highest is $3,038, and the average is $2,324.
On the whole, these cost about 48% less than Policy A. 8 different policies are available.
No SELECT “F – High Deductible” policies are available.
Policy G:
The lowest price available is $3,911, the highest is $5,200, and the average is $4,613.
On the whole, these cost about 3% more than Policy A. 12 different policies are available.
Two SELECT policies are also available; the lower price is $3,558, the higher is $4,309.
Policy K:
The lowest price available is $1,926, the highest is $2,796, and the average is $2,476.
On the whole, these cost about 45% less than Policy A. 4 different policies are available.
No SELECT “K” policies are available.
This is the 50% catastrophic policy.
Policy L:
The lowest price available is $2,898, the highest is $4,125, and the average is $3,492.
On the whole, these cost about 22% less than Policy A. 6 different policies are available.
No SELECT “L” policies are available.
This is the 75% catastrophic policy.
Policy M:
The lowest price available is $4,037, the highest is $11,056, and the average is $6,215.
On the whole, these cost about 39% more than Policy A. 7 different policies are available.
One SELECT policy is available; it costs $3,966.
This policy is very new.
Policy N:
The lowest price available is $3,456, the highest is $11,021, and the average is $5,153.
On the whole, these cost 15% more than Policy A. 13 different policies are available.
No SELECT “N” policies are available.
This policy is very new.
