TENNESSEE MEDIGAP POLICIES AVAILABLE IN 2012

TENNESSEE 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 Tennessee Department of Commerce and Insurance website www.tn.gov/commerce/insurance/documents/medicaresupplementratesforpdf.pdf in late May 2012. 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 Nashville area (specifically, for those areas that begin with the ZIP code of 372). Generally, the rates for Nashville are the highest in the state; if you live in others areas, you may see rates that are about up to 12% 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 mid-point of these two different rates to summarize these insurance companies’ prices. Finally, some companies give a discount if both of a couple buy the same policy; my experience is that beneficiaries tend to do this, so these are the rates reflected here. So the prices you see will almost never be precisely what you will be quoted, but they will help you pick out some insurers to contact 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 Tennessee sell “Issue-Age-Rated” policies, and all the others are “Attained-Age-Rated” policies. Issue-Age policies will not increase in price because you get older, but only for medical inflation, but Attained-Age policies will increase for both 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. With his 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 almost a factor of 3! 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.

If you email me at gjacobs23@windstream.net I can send you an Excel spreadsheet with more detailed information about policies.


Medigap Policies – Non-Smokers – Nashville Area – Females – Age 65 – Tennessee

Policy A: The lowest price for a standard policy is $636, the highest is $1,719, and the average is $1,176. Some 40 different policies are available. One SELECT policy, for $1,031, is available. This “A” policy is the “basic” policy.

Policy B: The lowest price for a standard policy is $935, the highest is $2,527, and the average is $1,574. Some 17 different policies are available. On the whole, these cost 34% more than a basic policy. One SELECT policy, for $1,031, is available.

Policy C: The lowest price for a standard policy is $1,072, the highest is $3,269, and the average is $1,750. Some 20 different policies are available. On the whole, these cost 49% more than a basic policy. Two SELECT policies, one for $1,247, and one for $1,797, are available. These “C” policies are popular.

Policy D: The lowest price for a standard policy is $980, the highest is $3,158, and the average is $1,538. Some 14 different policies are available. On the whole, these cost 31% more than a basic policy. One SELECT policy, for $1,136, is available.

Policy F: The lowest price for a standard policy is $1,117, the highest is $2,951, and the average is $1,744. Some 38 different policies are available. On the whole, these cost 48% more than a basic policy. Six SELECT policies, the lowest for $1,134, the highest for $1,809, are available. These “F” policies cover all Medigap benefits and are popular.

Policy F – High Deductible: The lowest price for a standard policy is $399, the highest is $825, and the average is $619. Some 15 different policies are available. On the whole, these cost 47% less than a basic policy. No SELECT policies are available.

Policy G: The lowest price for a standard policy is $985, the highest is $2,987, and the average is $1,476. Some 27 different policies are available. On the whole, these cost about 25% more than a basic policy. Five SELECT policies, the lowest for $930, the highest for $1,204, are available.

Policy K: The lowest price for a standard policy is $630, the highest is $1,107, and the average is $862. Some 7 different policies are available. On the whole, these cost 27% less than a basic policy. One SELECT policy, for $507, is 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 standard policy is $1,036, the highest is $1,556, and the average is $1,332. Some 7 different policies are available. On the whole, these cost 13% more 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 standard policy is $883, the highest is $1,829, and the average is $1,205. Some 8 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 standard policy is $782, the highest is $1,884, and the average is $1,166. Some 22 different policies are available. On the whole, these cost about the same as a basic policy. One SELECT policy, for $887, is available. This “N” policy is very new.


Medigap Policies – Non-Smokers – Nashville Area – Males – Age 65 – Tennessee

Policy A: The lowest price for a standard policy is $684, the highest is $1,759, and the average is $1,274. Some 40 different policies are available. One SELECT policy, for $1,089, is available. This “A” policy is the “basic” policy.

Policy B: The lowest price for a standard policy is $1,075, the highest is $2,527, and the average is $1,678. Some 17 different policies are available. On the whole, these cost 32% more than a basic policy. One SELECT policy, for $1,108, is available.

Policy C: The lowest price for a standard policy is $1,233, the highest is $3,269, and the average is $1,870. Some 20 different policies are available. On the whole, these cost 47% more than a basic policy. Two SELECT policies, one for $1,340, and one for $1,797, are available. These “C” policies are popular.

Policy D: The lowest price for a standard policy is $1,127, the highest is $3,158, and the average is $1,669. Some 14 different policies are available. On the whole, these cost 31% more than a basic policy. One SELECT policy, for $1,306, is available.

Policy F: The lowest price for a standard policy is $1,285, the highest is $2,951, and the average is $1,883. Some 38 different policies are available. On the whole, these cost 48% more than a basic policy. Six SELECT policies, the lowest for $1,193, the highest for $1,809, are available. These “F” policies cover all Medigap benefits and are popular.

Policy F – High Deductible: The lowest price for a standard policy is $399, the highest is $888, and the average is $660. Some 15 different policies are available. On the whole, these cost 48% less than a basic policy. No SELECT policies are available.

Policy G: The lowest price for a standard policy is $1,133, the highest is $2,987, and the average is $1,597. Some 27 different policies are available. On the whole, these cost about 25% more than a basic policy. Five SELECT policies, the lowest for $978, the highest for $1,385, are available.

Policy K: The lowest price for a standard policy is $630, the highest is $1,274, and the average is $913. Some 7 different policies are available. On the whole, these cost 28% less than a basic policy. One SELECT policy, for $545, is 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 standard policy is $1,036, the highest is $1,790, and the average is $1,394. Some 7 different policies are available. On the whole, these cost 9% more 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 standard policy is $1,015, the highest is $1,829, and the average is $1,288. Some 8 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 standard policy is $857, the highest is $2,167, and the average is $1,295. Some 22 different policies are available. On the whole, these cost about the same as a basic policy. One SELECT policy, for $953, is available. This “N” policy is very new.