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, 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. Note that the information is given first for females and then for males. All this is harder to explain than it is to show.
All this information, which is completely up-to-date as of March 2012, comes from the excellent Virginia State Corporation Commission’s Bureau of Insurance website, www.scc.virginia.gov/boi/pubs/medsup_cht.pdf, which has more detailed information on these policies.
In Virginia, some policies are “attained-age rated, some are “issue-age rated” and some are “community rated.” The attained-age policies go up in price as you age, but may be the least costly to begin with. Issue-age policies do not go up because you age, but their premiums may increase, as will attained-age policies, for medical technology and inflation. Community-rated policies are sold at the same price throughout a given area, and may be the most expensive, but are often available even to those that don’t have a guaranteed issue right. Always check with an insurance company to find out how a policy you are interested in is rated, and be aware of the implications. With this in mind, remember that each type policy sold had the exact same benefits.
And because the benefits are exactly the same for a given policy type (letter) 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; where these are especially wide, it may be because they are “guaranteed issue” (you can buy them no matter what your medical condition, so you will generally have to pay a high premium and you may have a waiting period before it will pay for treatment of your pre-existing conditions). And also please understand that the prices shown here and what you are quoted will vary because of how and how often you pay your premium, where you live in Virginia, whether you use tobacco, etc., so use these as guides rather than exact “matches.” (For those policies not priced the same state-wide, the prices are those that apply to the Richmond area.) The dollar amounts shown below are the annual cost of the policies.
Medigap Policies – Virginia – Females – Age 65
(NOTE: The prices for these run about 15% more for a beneficiary age 70, and 25% more for a beneficiary age 75.)
Policy A:
The lowest price available is $655, the highest is $5,570, and the average is $1,206.
This is the “basic” policy. Some 32 different policies are available.
Policy B:
The lowest price available is $1,006, the highest is $8,244, and the average is $1,752.
On the whole, these cost about 45% more than Policy A. 18 different policies are available.
Policy C:
The lowest price available is $1,208, the highest is $5,766, and the average is $1,809.
On the whole, these cost about 50% more than Policy A. 16 different policies are available. These are popular.
Policy D:
The lowest price available is $1,066, the highest is $1,809, and the average is $1,384.
On the whole, these cost about 15% more than Policy A. 7 different policies are available.
Policy F:
The lowest price available is $1,175, the highest is $4,453, and the average is $1,634.
On the whole, these cost about 36% more than Policy A. 33 different policies are available. These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $353 the highest is $1,268, and the average is $552.
On the whole, these cost about 54% less than Policy A. 13 different policies are available. The deductible in 2012 is $2,070.
Policy G:
The lowest price available is $1,013, the highest is $1,934, and the average is $1,295.
On the whole, these cost about 7% more than Policy A. 20 different policies are available.
Policy K:
The lowest price available is $446, the highest is $952, and the average is $700.
On the whole, these cost about 42% less than Policy A. 7 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 $688, the highest is $1,213, and the average is $984.
On the whole, these cost about 18% less than Policy A. 6 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 $990, the highest is $1,337, and the average is $1,132.
On the whole, these cost about 6% less than Policy A. 6 different policies are available. This policy is very new.
Policy N:
The lowest price available is $797, the highest is $2,189, and the average is $1,118.
On the whole, these cost about 7% less than Policy A. 22 different policies are available. This policy is very new.
Medigap Policies – Virginia – Males – Age 65
(NOTE: The prices for these run about 15% more for a beneficiary age 70, and 25% more for a beneficiary age 75.)
Policy A:
The lowest price available is $655, the highest is $5,570, and the average is $1,285.
This is the “basic” policy. Some 32 different policies are available.
Policy B:
The lowest price available is $1,006, the highest is $8,244, and the average is $1,850.
On the whole, these cost about 44% more than Policy A. 18 different policies are available.
Policy C:
The lowest price available is $1,240, the highest is $5,766, and the average is $1,914.
On the whole, these cost about 49% more than Policy A. 16 different policies are available. These are popular.
Policy D:
The lowest price available is $1,226, the highest is $2,081, and the average is $1,522.
On the whole, these cost about 18% more than Policy A. 7 different policies are available.
Policy F:
The lowest price available is $1,248, the highest is $4,453, and the average is $1,749.
On the whole, these cost about 36% more than Policy A. 33 different policies are available. These cover all Medigap benefits and are popular.
Policy F – High Deductible:
The lowest price available is $384 the highest is $1,268, and the average is $580.
On the whole, these cost about 55% less than Policy A. 13 different policies are available. The deductible in 2012 is $2,070.
Policy G:
The lowest price available is $1,125, the highest is $2,093, and the average is $1,406.
On the whole, these cost about 9% more than Policy A. 20 different policies are available.
Policy K:
The lowest price available is $446, the highest is $954, and the average is $737.
On the whole, these cost about 43% less than Policy A. 7 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 $688, the highest is $1,218, and the average is $1,038.
On the whole, these cost about 19% less than Policy A. 6 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 $1,140, the highest is $1,337, and the average is $1,243.
On the whole, these cost about 3% less than Policy A. 6 different policies are available. This policy is very new.
Policy N:
The lowest price available is $797, the highest is $2,189, and the average is $1,218.
On the whole, these cost about 5% less than Policy A. 22 different policies are available. This policy is very new.
If you send me an email to gjacobs23@windstream.net I will send you a small Excel file which had more detailed information.
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