COLORADO MEDIGAP POLICIES AVAILABLE IN 2012

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.

What I have available here is information 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. I also include some brief information as to what these will cost for a beneficiary age 70 and 75. All this is harder to explain than it is to show.

Note that for both groups the information is given first for females and then for males. All this information comes from the excellent Colorado Department of Regulatory Agencies’ Division of Insurance website, www.dora.state.co.us/insurance/senior/2011, 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 note significant differences in prices for the same policy type, although these are less in Colorado than in many other states. Please understand that the prices shown here and what you are quoted will vary because of how and how often you pay your premium, how your policy is priced or rated (almost all in Colorado are attained-age-rated, but at least one sells an “issue-age” policy, which may save you money in the long run), whether you have to serve a waiting period for a pre-existing condition, and if so, how long, whether you smoke or use tobacco, where you live in Colorado, and so forth, so use these as guides rather than exact “matches.” (These happen to be based on the populous Denver area.) And for some of the policies shown, you may need to be a member of a particular group, such as AARP, to be eligible to buy the policy. The rounded dollar amounts shown below are the monthly cost of the policies. This information was up-to-date as of March 2012.

Medigap Policies – Females – Age 65

(NOTE: The prices for these run about 20% more for a beneficiary age 70, and 40% more for a beneficiary age 75.)

Policy A:
The lowest price available is $62, the highest is $209, and the average is $104.
This is the “basic” policy. Some 42 different policies are available.

Policy B:
The lowest price available is $87, the highest is $255, and the average is $133.
On the whole, these cost about 28% more than Policy A. 20 different policies are available.

Policy C:
The lowest price available is $106, the highest is $290, and the average is $151. On the whole, these cost about 45% more than Policy A. 22 different policies are available.

Policy D:
The lowest price available is $94, the highest is $175, and the average is $125. 
On the whole, these cost about 20% more than Policy A. 15 different policies are available.

Policy F:
The lowest price available is $109, the highest is $250, and the average is $149. 
On the whole, these cost about 43% more than Policy A. 41 different policies are available.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:
The lowest price available is $35, the highest is $89, and the average is $53.
On the whole, these cost about 49% less than Policy A. 17 different policies are available.  The deductible in 2012 is $2,070.

Policy G:
The lowest price available is $96, the highest is $191, and the average is $129.
On the whole, these cost about 24% more than Policy A. 26 different policies are available.

Policy K:
The lowest price available is $56, the highest is $84, and the average is $73. 
On the whole, these cost about 30% less than Policy A. 9 different policies are available.  This is the 50% catastrophic policy. The catastrophic level for this policy in 2012 is $4,660.

Policy L:
The lowest price available is $88, the highest is $119, and the average is $104. 
On the whole, these cost the same as Policy A. 9 different policies are available.  This is the 75% catastrophic policy. The catastrophic level for this policy in 2012 is $2,330.

Policy M:
The lowest price available is $100, the highest is $156, and the average is $120. 
On the whole, these cost about 15% more than Policy A. 9 different policies are available.  This policy is very new.

Policy N:
The lowest price available is $75, the highest is $144, and the average is $102.
On the whole, these cost about the same as Policy A. 26 different policies are available.  This policy is very new.

Medigap Policies – Males – Age 65

(NOTE: The prices for these run about 20% more for a beneficiary age 70, and 40% more for a beneficiary age 75.)

Policy A:
The lowest price available is $62, the highest is $224, and the average is $112. 
This is the “basic” policy. Some 42 different policies are available.

Policy B:
The lowest price available is $100, the highest is $255, and the average is $143. 
On the whole, these cost about 27% more than Policy A. 20 different policies are available.

Policy C:
The lowest price available is $122, the highest is $290, and the average is $164. 
On the whole, these cost about 46% more than Policy A. 22 different policies are available.

Policy D:
The lowest price available is $108, the highest is $175 and the average is $139. 
On the whole, these cost about 24% more than Policy A. 15 different policies are available.

Policy F:
The lowest price available is $119, the highest is $250, and the average is $161. 
On the whole, these cost about 43% more than Policy A. 41 different policies are available.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:
The lowest price available is $35, the highest is $89, and the average is $56.
On the whole, these cost about 50% less than Policy A. 17 different policies are available.  The deductible in 2012 is $2,070.

Policy G:
The lowest price available is $87, the highest is $191, and the average is $138. 
On the whole, these cost about 23% more than Policy A. 26 different policies are available.

Policy K:
The lowest price available is $56, the highest is $96, and the average is $76. 
On the whole, these cost about 33% less than Policy A. 9 different policies are available.  This is the 50% catastrophic policy. The catastrophic level for this policy in 2012 is $4,660.

Policy L:
The lowest price available is $88, the highest is $137, and the average is $108. 
On the whole, these cost about 4% less than Policy A. 9 different policies are available.  This is the 75% catastrophic policy. The catastrophic level for this policy in 2012 is $2,330.

Policy M:
The lowest price available is $115, the highest is $156, and the average is $130. 
On the whole, these cost about 16% less than Policy A. 9 different policies are available.  This policy is very new.

Policy N:
The lowest price available is $86, the highest is $153, and the average is $111. 
On the whole, these cost about the same as Policy A. 26 different policies are available.  This policy is very new.

If you email me at gjacobs23@windstream.net, I will send you a small Excel file which has more detailed information.