NORTH CAROLINA MEDIGAP POLICIES AVAILABLE IN 2012

NORTH CAROLINA 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, 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 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. This information is given separately for females and males, as most insurance companies have different rates by gender. And the data presented is for non-smokers; my analysis shows that female smokers will pay very roughly 12% more than the prices shown here, and males, a hefty 50% or more.

A word of caution, though. The price you are quoted will probably vary somewhat from the amounts shown. Some of the factors which vary the price may include where you live in North Carolina, how often you pay your premium (the amounts shown are for monthly payments), how you pay your premium (auto-pay may get you a discount), whether you and your spouse use the same company, etc. Almost all these policies are rated on an “attained age” basis, where the price will go up as you age, but two are differently rated, one is “issue age rated” and another is “community rated,” and you should consider the benefits of these (your price generally doesn’t go up because you age) in determining the best deal for you. Also, a few companies also sell SELECT or network Medigap policies in some areas, where you generally have to use their network of physicians and providers for your claims to be reimbursed.

But 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 most cases by a factor of 2, and in some cases, even more!

This data was collected from the excellent North Carolina Department of Insurance website http://www.ncdoi.com/SHIIP/SHIIP_Medicare_Supplement.aspx and its
Medicare Supplement Premium Comparison Database, as of the end of March 2012. Additional details about these insurance companies and their policies are available there.

Standard Medigap Policies – Females – Age 65 – North Carolina

Policy A:
The lowest price available is $67, the highest is $188, and the average is $103.
This is the “basic” policy. Some 42 different policies are available.

Policy B:
The lowest price available is $78, the highest is $214, and the average is $128.
On the whole, these cost about 24% more than Policy A. 22 different policies are available.

Policy C:
The lowest price available is $94, the highest is $243, and the average is $145.
On the whole, these cost about 40% more than Policy A. 23 different policies are available.

Policy D:
The lowest price available is $82, the highest is $196, and the average is $124.
On the whole, these cost about 20% more than Policy A. 12 different policies are available.

Policy F:
The lowest price available is $97, the highest is $221, and the average is $143.
On the whole, these cost about 38% more than Policy A. 42 different policies are available.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:
The lowest price available is $29, the highest is $70, and the average is $47.
On the whole, these cost about 54% less than Policy A. 16 different policies are available.  The deductible in 2012 is $2,070.

Policy G:
The lowest price available is $82, the highest is $165, and the average is $117.
On the whole, these cost about 13% more than Policy A. 25 different policies are available.

Policy K:
The lowest price available is $61, the highest is $86, and the average is $69.
On the whole, these cost about 33% less than Policy A. 10 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 $75, the highest is $119, and the average is $100.
On the whole, these cost about the same as Policy A. 8 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 $74, the highest is $122, and the average is $100.
On the whole, these cost about the same as Policy A. 7 different policies are available.  This policy is very new.

Policy N:
The lowest price available is $68, the highest is $154, and the average is $100.
On the whole, these cost about the same as Policy A. 30 different policies are available.  This policy is very new.

Standard Medigap Policies – Males – Age 65 – North Carolina

Policy A:
The lowest price available is $75, the highest is $188, and the average is $112.
This is the “basic” policy. Some 42 different policies are available.

Policy B:
The lowest price available is $90, the highest is $231, and the average is $139.
On the whole, these cost about 24% more than Policy A. 22 different policies are available.

Policy C:
The lowest price available is $108, the highest is $249, and the average is $157.
On the whole, these cost about 40% more than Policy A. 23 different policies are available.

Policy D:
The lowest price available is $94, the highest is $225, and the average is $138.
On the whole, these cost about 23% more than Policy A. 12 different policies are available.

Policy F:
The lowest price available is $112, the highest is $254, and the average is $155.
On the whole, these cost about 38% more than Policy A. 42 different policies are available.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:
The lowest price available is $29, the highest is $84, and the average is $51.
On the whole, these cost about 54% less than Policy A. 16 different policies are available.  The deductible in 2012 is $2,070.

Policy G:
The lowest price available is $95, the highest is $190, and the average is $128.
On the whole, these cost about 14% more than Policy A. 25 different policies are available.

Policy K:
The lowest price available is $61, the highest is $103, and the average is $77.
On the whole, these cost about 31% less than Policy A. 10 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 $75, the highest is $142, and the average is $106.
On the whole, these cost about 6% less than Policy A. 8 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 $85, the highest is $136, and the average is $109.
On the whole, these cost about the same as Policy A. 7 different policies are available.  This policy is very new.

Policy N:
The lowest price available is $78, the highest is $173, and the average is $106.
On the whole, these cost about 5% less than Policy A. 30 different policies are available.  This policy is very new.

If you email me at gjacobs23@windstream.net I will send you an Excel spreadsheet with additional details.