LOUISIANA MEDIGAP POLICIES AVAILABLE IN 2012

LOUISIANA MEDIGAP POLICIES AVAILABLE IN 2012

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

I have done 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 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, first for females, and then for males, 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. There is also, for fee-for-service or standard policies, 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. A word of caution, though.

This data was derived from the Louisiana Department of Insurance website www.ldi.la.gov in late May 2012. But they note that their information was in effect on January 2011, and prices may have changed since then; they further note that only companies which responded with their request for rate information are included and other companies may be able to sell policies in the state. The information they present is quite complicated and I have simplified it somewhat. Specifically, because a number of insurance companies offer different rates depending on where you live, the information I present is only for the Jefferson Parish area (specifically, for those areas that begin with the ZIP code of 701). Generally, the rates for Jefferson Parish are the highest in the state; if you live in others areas, you may see rates that are about up to 16% less if you live in the cheapest areas. Some companies also have different rates for smokers and non-smokers; I show only the rates for non-smokers. Also, for those companies which differentiate between “preferred” and “standard” rates (Preferred customers are usually given a lower premium.), I have used the preferred rate. So the prices you see will almost never be precisely what you will be quoted, but they will help you pick out some of the lower-cost insurers so that you can contact them and ask for what exactly what they will quote you. I believe the information in this format is far easier to use than what is on the website.

Finally, you should note that three companies in Louisiana sell “Issue-Age-Rated” policies, and all the others policies are “Attained-Age-Rated” policies. Issue-Age policies will not increase in price because you get older, but only for new technology and medical inflation, but Attained-Age policies will increase for all three reasons. Therefore, if you buy an Issue-Age policy, you will perhaps pay a higher premium, but you will protect yourself against some future price increases as you age. With this exception, 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; in some cases by more that a factor of 2! The dollar amounts shown below are the annual cost of the policies. First, for each policy type, we give the information on standard or fee-for-service policies, and then, the information on SELECT or network policies. (And while their rates are not available on the website, State Mutual, Sterling Investors, and Sterling Life also have some SELECT policies; you can call them for availability and quotes, if interested.)

Medigap Policies – Non-Smokers – Females – Age 65

ZIP Area 701 – Jefferson Parish Area – Louisiana

Policy A: The lowest price for a policy is $1,024, the highest is $2,533, and the average is $1,349. Some 34 different policies are available. No SELECT policies are available. This “A” policy is the “basic” policy.

Policy B: The lowest price for a policy is $1,142, the highest is $2,884, and the average is $1,690. Some 17 different policies are available. On the whole, these cost 25% more than a basic policy. Two SELECT policies, one for $948, and one for $1,207, are available.

Policy C: The lowest price for a policy is $1,400, the highest is $2,578, and the average is $1,853. Some 18 different policies are available. On the whole, these cost 37% more than a basic policy. Three SELECT policies, the lowest for $1,120, the highest for $1,333, are available. These “C” policies are popular.

Policy D: The lowest price for a policy is $1,216, the highest is $2,290, and the average is $1,605. Some 10 different policies are available. On the whole, these cost 19% more than a basic policy. Three SELECT policies, the lowest for $989, the highest for $1,201, are available.

Policy F: The lowest price for a policy is $1,422, the highest is $2,697, and the average is $1,899. Some 33 different policies are available. On the whole, these cost 41% more than a basic policy. Seven SELECT policies, the lowest for $1,142, the highest for $1,608, are available. These “F” policies cover all Medigap benefits and are popular.

Policy F – High Deductible: The lowest price for a policy is $392, the highest is $847, and the average is $629. Some 11 different policies are available. On the whole, these cost 53% less than a basic policy. Three SELECT policies, the lowest for $653, the highest for $725, are available.

Policy G: The lowest price for a policy is $1,207, the highest is $2,214, and the average is $1,605. Some 21 different policies are available. On the whole, these cost about 19% more than a basic policy. Four SELECT policies, the lowest for $1,001, the highest for $1,273, are available.

Policy K: The lowest price for a policy is $695, the highest is $1,100, and the average is $916. Some 7 different policies are available. On the whole, these cost 32% less than a basic policy. No SELECT policies are available. This “K” policy is the 50% catastrophic policy. The catastrophic level for this policy in 2012 is $4,660.

Policy L: The lowest price for a policy is $1,039, the highest is $1,521, and the average is $1,290. Some 6 different policies are available. On the whole, these cost 4% less than a basic policy. No SELECT policies are available. This “L” policy is the 75% catastrophic policy. The catastrophic level for this policy in 2012 is $2,330.

Policy M: The lowest price for a policy is $1,217, the highest is $1,782, and the average is $1,356. Some 6 different policies are available. On the whole, these cost about the same as a basic policy. No SELECT policies are available. This “M” policy is very new.

Policy N: The lowest price for a policy is $1,004, the highest is $1,860, and the average is $1,315. Some 24 different policies are available. On the whole, these cost 3% less than a basic policy. Three SELECT policies, the lowest for $803, the highest for $1,166, are available. This “N” policy is very new.

Medigap Policies – Non-Smokers – Males – Age 65

ZIP Area 701 – Jefferson Parish Area – Louisiana

Policy A: The lowest price for a policy is $1,043, the highest is $2,533, and the average is $1,434 Some 34 different policies are available. No SELECT policies are available. This “A” policy is the “basic” policy.

Policy B: The lowest price for a policy is $1,312, the highest is $2,884, and the average is $1,808. Some 17 different policies are available. On the whole, these cost 26% more than a basic policy. Two SELECT policies, one for $1,089, and one for $1,207, are available.

Policy C: The lowest price for a policy is $1,529, the highest is $2,966, and the average is $1,975. Some 18 different policies are available. On the whole, these cost 38% more than a basic policy. Three SELECT policies, the lowest for $1,288, the highest for $1,352, are available. These “C” policies are popular.

Policy D: The lowest price for a policy is $1,398, the highest is $2,631, and the average is $1,757. Some 10 different policies are available. On the whole, these cost 23% more than a basic policy. Three SELECT policies, the lowest for $1,137, the highest for $1,381, are available.

Policy F: The lowest price for a policy is $1,568, the highest is $3,057, and the average is $2,028. Some 33 different policies are available. On the whole, these cost 41% more than a basic policy. Seven SELECT policies, the lowest for $1,142, the highest for $1,612, are available. These “F” policies cover all Medigap benefits and are popular.

Policy F – High Deductible: The lowest price for a policy is $392, the highest is $847, and the average is $654. Some 11 different policies are available. On the whole, these cost 54% less than a basic policy. Three SELECT policies, the lowest for $653, the highest for $788, are available.

Policy G: The lowest price for a policy is $1,269, the highest is $2,545, and the average is $1,716. Some 21 different policies are available. On the whole, these cost about 20% more than a basic policy. Four SELECT policies, the lowest for $1,151, the highest for $1,464, are available.

Policy K: The lowest price for a policy is $695, the highest is $1,103, and the average is $928. Some 7 different policies are available. On the whole, these cost 35% less than a basic policy. No SELECT policies are available. This “K” policy is the 50% catastrophic policy. The catastrophic level for this policy in 2012 is $4,660.

Policy L: The lowest price for a policy is $1,039, the highest is $1,521, and the average is $1,290. Some 6 different policies are available. On the whole, these cost 10% less than a basic policy. No SELECT policies are available. This “L” policy is the 75% catastrophic policy. The catastrophic level for this policy in 2012 is $2,330.

Policy M: The lowest price for a policy is $1,290, the highest is $1,782, and the average is $1,460. Some 6 different policies are available. On the whole, these cost about the same as a basic policy. No SELECT policies are available. This “M” policy is very new.

Policy N: The lowest price for a policy is $1,026, the highest is $2,140, and the average is $1,429. Some 24 different policies are available. On the whole, these cost about the same as a basic policy. Three SELECT policies, the lowest for $923, the highest for $1,166, are available. This “N” policy is very new.

If your email me at gjacobs23@windstream.net I will send you a one-page Excel spreadsheet giving more specific information.