ARIZONA MEDIGAP POLICIES AVAILABLE IN 2012

ARIZONA MEDIGAP POLICIES AVAILABLE IN 2012

by George Jacobs, author of Managing Your Medicare, published by Self-Counsel Press

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 in June of 2010, and by now there is enough information to give some guidance on both the availability and prices of the newly structured policies.

There is no need to go into explaining the new structure; this is all spelled out in Managing Your Medicare, on page 157. But what I have available here is information for those age 65, which is when most beneficiaries get a Medigap policy, on the number of regular (or fee-for-service) policies available, the lowest priced one available, the highest priced one available, and the average price. This information is given first for females, and then for males, as the prices usually differ. 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, I repeat similar information for SELECT or network Medigap policies. Recall that these Medigap policies require you to go to physicians and providers which are in the Medigap insurance company’s network of providers for complete payment; on the other hand, they may be a little cheaper than regular policies. (With a regular or fee-for-service policy, you can go to any doctor, hospital or provider who will accept it, and almost all do.)

The prices I have shown are for the average for non-smokers in Maricopa County. This is because the Arizona Department of Insurance website shows average prices, so yours may be higher or lower. And I used Maricopa as it’s the most populous county. It also has the highest prices, so if you live elsewhere you may pay less. (For example, the prices for Yavapai County, one of the eight counties shown on that website, are the lowest of the eight, and they run about 12½% to 15% less than Maricopa.) All this information is up-to-date as of April 2012. Their website, www.azinsurance.gov, has more detailed information on these policies.

It is interesting to note that the prices for males tend to be somewhat more expensive than those for females, but several companies sell their policies for the same price. Males may want to look closely at these to get a better deal. And some companies sell their policies for the same prices statewide, and those who live in more expensive counties (such as Maricopa) may want to look at these.

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, taking into account how they are rated. (This is because there is one “Community Rated” Medigap insurer in Arizona and this insurer may be a better deal as will not raise prices just because you age, but may do so for inflation and medical technology; all others are “attained age rated” and your prices will rise as you age as well as inflation and technology.) Note that for beneficiaries age 65 there are substantial differences in Arizona in the prices of Medigap policies, so shop carefully. And again, 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 Arizona, etc., etc., so use these as guides rather than exact “matches.” The dollar amounts shown below are the monthly cost of the policies. And note that in some cases a policy is available only to members of a particular group.

Arizona Medigap Policies Females, Non-Smoking, Age 65, Maricopa County, Average Monthly Cost

Policy A:  The lowest price available is $69, the highest is $190, and the average is $118.  This is the “basic” policy. 47 different policies are available. 1 SELECT policy ($158) is available.

Policy B:  The lowest price available is $96, the highest is $216, and the average is $142.  On the whole, these cost about 20% more than Policy A. 18 different policies are available.   1 SELECT policy ($162) is also available.

Policy C:  The lowest price available is $113, the highest is $246, and the average is $158.  On the whole, these cost about 34% more than Policy A. 21 different policies are available.  3 SELECT policies are also available; the lowest price is $96, the highest is $165.  These policies are popular.

Policy D:  The lowest price available is $99, the highest is $226, and the average is $133.  On the whole, these cost about 12% more than Policy A. 13 different policies are available.  No SELECT policies are available.

Policy F:  The lowest price available is $119, the highest is $290, and the average is $169.  On the whole, these cost about 44% more than Policy A. 46 different policies are available.  2 SELECT policies are also available; the lower price is $97, the higher is $147.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:  The lowest price available is $29, the highest is $101, and the average is $58.  On the whole, these cost about 50% less than Policy A. 16 different policies are available.  No SELECT policies are available.

Policy G:  The lowest price available is $98, the highest is $233, and the average is $144.  On the whole, these cost about 22% more than Policy A. 27 different policies are available.  1 SELECT policy ($132) is also available.

Policy K:  The lowest price available is $47, the highest is $113, and the average is $76.  On the whole, these cost about 36% less than Policy A. 9 different policies are available.  1 SELECT policy ($56) is also available. This is the 50% catastrophic policy.

Policy L:  The lowest price available is $74, the highest is $158, and the average is $110.  On the whole, these cost about 7% less than Policy A. 9 different policies are available.  No SELECT policies are available. This is the 75% catastrophic policy.

Policy M:  The lowest price available is $93, the highest is $141, and the average is $115.  On the whole, these cost about 3% less than Policy A. 8 different policies are available.  No SELECT policies are available. This policy is very new.

Policy N:  The lowest price available is $85, the highest is $217, and the average is $122.  On the whole, these cost 3% more than Policy A. 30 different policies are available.  SELECT policies are also available; the lower price is $83, the higher is $106.  This policy is very new.

Arizona Medigap Policies Males, Non-Smoking, Age 65, Maricopa County, Average Monthly Cost

Policy A:  The lowest price available is $69, the highest is $219, and the average is $129.  This is the “basic” policy. 47 different policies are available. 1 SELECT policy ($158) is available.

Policy B:  The lowest price available is $110, the highest is $242, and the average is $155.  On the whole, these cost about 20% more than Policy A. 18 different policies are available.  1 SELECT policy ($162) is also available.

Policy C:  The lowest price available is $113, the highest is $267, and the average is $170.  On the whole, these cost about 32% more than Policy A. 21 different policies are available.  3 SELECT policies are also available; the lowest price is $91, the highest is $179.  These policies are popular.

Policy D:  The lowest price available is $113, the highest is $260, and the average is $148.  On the whole, these cost about 15% more than Policy A. 13 different policies are available.  No SELECT policies are available.

Policy F:  The lowest price available is $126, the highest is $317, and the average is $185.  On the whole, these cost about 44% more than Policy A. 46 different policies are available.  2 SELECT policies are also available; the lower price is $97, the higher is $160.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:  The lowest price available is $32, the highest is $101, and the average is $64.  On the whole, these cost about 51% less than Policy A. 16 different policies are available.  No SELECT policies are available.

Policy G:  The lowest price available is $106, the highest is $264, and the average is $158.  On the whole, these cost about 23% more than Policy A. 27 different policies are available.  1 SELECT policy ($143) is also available.

Policy K:  The lowest price available is $47, the highest is $129, and the average is $81.  On the whole, these cost about 37% less than Policy A. 9 different policies are available.  1 SELECT policy ($60) is also available. This is the 50% catastrophic policy.

Policy L:  The lowest price available is $74, the highest is $182, and the average is $118.  On the whole, these cost about 9% less than Policy A. 9 different policies are available.  No SELECT policies are available. This is the 75% catastrophic policy.

Policy M:  The lowest price available is $101, the highest is $142, and the average is $126.  On the whole, these cost about 3% less than Policy A. 8 different policies are available.  No SELECT policies are available. This policy is very new.

Policy N:  The lowest price available is $85, the highest is $222, and the average is $134.  On the whole, these cost 4% more than Policy A. 30 different policies are available.  2 SELECT policies are also available; the lower price is $83, the higher is $115.  This policy is very new.

If you email me at gjacobs23@windstream,net I  will send you a one-page Excel spreadsheet with more detailed information.