WASHINGTON STATE MEDIGAP POLICIES AVAILABLE IN 2012

WASHINGTON STATE 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 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.

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 be surprised by the difference in prices for the same policy type. The dollar amounts shown below are the monthly cost of the policies; some companies may offer small discounts. Note that a few companies offer their policy only in some parts of the state, and some require you to be a member of a group or association (such as AARP) to buy their policy. Companies may require you to have a health screening, and some will impose a waiting period (of no more than three months) for preexisting medical conditions under some circumstances, although not all companies do this. And, finally, note that two companies sell SELECT policies, which generally require you to go to their network of doctors and health care providers to get their full Medigap reimbursement.

And note that seniors in Washington can buy a Medigap policy at any time, there is no open enrollment period, and for them the policies are community-rated. In addition, the state has rules that allow you to switch from certain policy types to others once you have a Medigap policy. You can contact the Insurance Consumer Hotline at 1-800-562-6900 for additional information.

This information comes from excellent the Washington State Office of the Insurance Commissioner website, www.insurance.wa.gov, which has more detailed information on these policies. The data was up to date as of March 2012.

Medigap Policies – For Washington Beneficiaries Age 65 and Older

Policy A:  The lowest price available is $90, the highest is $228, and the average is $135. Some 21 different companies offer these. This is the “basic” policy.

Policy B:  The lowest price available is $140, the highest is $276, and the average is $176. On the whole, these cost about 30% more than Policy A. 9 different companies offer these.

Policy C:  The lowest price available is $165, the highest is $323, and the average is $197. On the whole, these cost about 46% more than Policy A. 14 different companies offer these.

Policy D:  The lowest price available is $157, the highest is $237, and the average is $189. On the whole, these cost about 40% more than Policy A. 5 different companies offer these.

Policy F:  The lowest price available is $166, the highest is $323, and the average is $198. On the whole, these cost about 46% more than Policy A. 22 different companies offer these.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:  The lowest price available is $47, the highest is $77, and the average is $61. On the whole, these cost about 55% less than Policy A. 6 different companies offer these.   The deductible in 2012 is $2,070.

Policy G:  The lowest price available is $156, the highest is $239, and the average is $180. On the whole, these cost about 33% more than Policy A. 10 different companies offer these.

Policy K:  The lowest price available is $58, the highest is $96, and the average is $83. On the whole, these cost about 38% less than Policy A. 8 different companies offer these.  This is the 50% catastrophic policy. The catastrophic level for this policy in 2012 is $4,660.

Policy L:  The lowest price available is $90, the highest is $132 and the average is $117. On the whole, these cost about 14% less than Policy A. 4 different companies offer these.  This is the 75% catastrophic policy. The catastrophic level for this policy in 2012 is $2,330.

Policy M:  The lowest price available is $156, the highest is $165. No average is given as only 2 different companies offer these. On the whole, these cost about 19% more than Policy A. This policy is very new.

Policy N:  The lowest price available is $106, the highest is $182 and the average is $140. On the whole, these cost about 3% more than Policy A. 10 different companies offer these.  This policy is very new.


Two companies sell SELECT Medigap policies; these are a little cheaper than regular policies, but you must use the companies’ physician and provider networks. One company sells SELECT A ($127), B ($131), C ($158), F ($158), G ($142), K ($58), and N ($103); the other only SELECT C ($144) and F ($145).

If you email me at gjacobs23@windtream.net I can send you a more detailed
Excel spreadsheet showing policies available.