ARIZONA MEDIGAP POLICIES AVAILABLE IN 2012

ARIZONA 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 for those age 65, which is when most beneficiaries get a Medigap policy, on the number of regular (or fee-for-service) policies available, the lowest priced one available, the highest priced one available, and the average price. This information is given first for females, and then for males, as the prices usually differ. 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. In addition, I repeat similar information for SELECT or network Medigap policies. Recall that these Medigap policies require you to go to physicians and providers which are in the Medigap insurance company’s network of providers for complete payment; on the other hand, they may be a little cheaper than regular policies. (With a regular or fee-for-service policy, you can go to any doctor, hospital or provider who will accept it, and almost all do.)

The prices I have shown are for the average for non-smokers in Maricopa County. This is because the Arizona Department of Insurance website shows average prices, so yours may be higher or lower. And I used Maricopa as it’s the most populous county. It also has the highest prices, so if you live elsewhere you may pay less. (For example, the prices for Yavapai County, one of the eight counties shown on that website, are the lowest of the eight, and they run about 12½% to 15% less than Maricopa.) All this information is up-to-date as of April 2012. Their website, www.azinsurance.gov, has more detailed information on these policies.

It is interesting to note that the prices for males tend to be somewhat more expensive than those for females, but several companies sell their policies for the same price. Males may want to look closely at these to get a better deal. And some companies sell their policies for the same prices statewide, and those who live in more expensive counties (such as Maricopa) may want to look at these.

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, taking into account how they are rated. (This is because there is one “Community Rated” Medigap insurer in Arizona and this insurer may be a better deal as will not raise prices just because you age, but may do so for inflation and medical technology; all others are “attained age rated” and your prices will rise as you age as well as inflation and technology.) Note that for beneficiaries age 65 there are substantial differences in Arizona in the prices of Medigap policies, so shop carefully. And again, please understand that the prices shown here and what you are quoted will vary somewhat because of how and how often you pay your premium, whether you smoke, where you live in Arizona, etc., etc., so use these as guides rather than exact “matches.” The dollar amounts shown below are the monthly cost of the policies. And note that in some cases a policy is available only to members of a particular group.

Arizona Medigap Policies Females, Non-Smoking, Age 65, Maricopa County, Average Monthly Cost

Policy A:  The lowest price available is $69, the highest is $190, and the average is $118.  This is the “basic” policy. 47 different policies are available. 1 SELECT policy ($158) is available.

Policy B:  The lowest price available is $96, the highest is $216, and the average is $142.  On the whole, these cost about 20% more than Policy A. 18 different policies are available.   1 SELECT policy ($162) is also available.

Policy C:  The lowest price available is $113, the highest is $246, and the average is $158.  On the whole, these cost about 34% more than Policy A. 21 different policies are available.  3 SELECT policies are also available; the lowest price is $96, the highest is $165.  These policies are popular.

Policy D:  The lowest price available is $99, the highest is $226, and the average is $133.  On the whole, these cost about 12% more than Policy A. 13 different policies are available.  No SELECT policies are available.

Policy F:  The lowest price available is $119, the highest is $290, and the average is $169.  On the whole, these cost about 44% more than Policy A. 46 different policies are available.  2 SELECT policies are also available; the lower price is $97, the higher is $147.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:  The lowest price available is $29, the highest is $101, and the average is $58.  On the whole, these cost about 50% less than Policy A. 16 different policies are available.  No SELECT policies are available.

Policy G:  The lowest price available is $98, the highest is $233, and the average is $144.  On the whole, these cost about 22% more than Policy A. 27 different policies are available.  1 SELECT policy ($132) is also available.

Policy K:  The lowest price available is $47, the highest is $113, and the average is $76.  On the whole, these cost about 36% less than Policy A. 9 different policies are available.  1 SELECT policy ($56) is also available. This is the 50% catastrophic policy.

Policy L:  The lowest price available is $74, the highest is $158, and the average is $110.  On the whole, these cost about 7% less than Policy A. 9 different policies are available.  No SELECT policies are available. This is the 75% catastrophic policy.

Policy M:  The lowest price available is $93, the highest is $141, and the average is $115.  On the whole, these cost about 3% less than Policy A. 8 different policies are available.  No SELECT policies are available. This policy is very new.

Policy N:  The lowest price available is $85, the highest is $217, and the average is $122.  On the whole, these cost 3% more than Policy A. 30 different policies are available.  SELECT policies are also available; the lower price is $83, the higher is $106.  This policy is very new.

Arizona Medigap Policies Males, Non-Smoking, Age 65, Maricopa County, Average Monthly Cost

Policy A:  The lowest price available is $69, the highest is $219, and the average is $129.  This is the “basic” policy. 47 different policies are available. 1 SELECT policy ($158) is available.

Policy B:  The lowest price available is $110, the highest is $242, and the average is $155.  On the whole, these cost about 20% more than Policy A. 18 different policies are available.  1 SELECT policy ($162) is also available.

Policy C:  The lowest price available is $113, the highest is $267, and the average is $170.  On the whole, these cost about 32% more than Policy A. 21 different policies are available.  3 SELECT policies are also available; the lowest price is $91, the highest is $179.  These policies are popular.

Policy D:  The lowest price available is $113, the highest is $260, and the average is $148.  On the whole, these cost about 15% more than Policy A. 13 different policies are available.  No SELECT policies are available.

Policy F:  The lowest price available is $126, the highest is $317, and the average is $185.  On the whole, these cost about 44% more than Policy A. 46 different policies are available.  2 SELECT policies are also available; the lower price is $97, the higher is $160.  These cover all Medigap benefits and are popular.

Policy F – High Deductible:  The lowest price available is $32, the highest is $101, and the average is $64.  On the whole, these cost about 51% less than Policy A. 16 different policies are available.  No SELECT policies are available.

Policy G:  The lowest price available is $106, the highest is $264, and the average is $158.  On the whole, these cost about 23% more than Policy A. 27 different policies are available.  1 SELECT policy ($143) is also available.

Policy K:  The lowest price available is $47, the highest is $129, and the average is $81.  On the whole, these cost about 37% less than Policy A. 9 different policies are available.  1 SELECT policy ($60) is also available. This is the 50% catastrophic policy.

Policy L:  The lowest price available is $74, the highest is $182, and the average is $118.  On the whole, these cost about 9% less than Policy A. 9 different policies are available.  No SELECT policies are available. This is the 75% catastrophic policy.

Policy M:  The lowest price available is $101, the highest is $142, and the average is $126.  On the whole, these cost about 3% less than Policy A. 8 different policies are available.  No SELECT policies are available. This policy is very new.

Policy N:  The lowest price available is $85, the highest is $222, and the average is $134.  On the whole, these cost 4% more than Policy A. 30 different policies are available.  2 SELECT policies are also available; the lower price is $83, the higher is $115.  This policy is very new.

If you email me at gjacobs23@windstream,net I  will send you a one-page Excel spreadsheet with more detailed information.

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.

OHIO MEDIGAP POLICIES AVAILABLE IN 2012

OHIO 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. Or you can call 1-800-686-1578 and ask that the Ohio Department of Insurance send you its excellent and up-to-date “Guide to Medicare Supplement Insurance, Medicare Options and Part D.” 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, 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. All this is easier to show than explain. Information on SELECT or network policies is also given; usually you have to go to a doctor, hospital or provider in the insurer’s network to get full reimbursement for these types of Medigap policies, but the premiums are usually less.

A word of caution, though. The rates shown are “sample” rates only, and what you will be quoted by the insurance company will differ from these rates for a variety of reasons, including your gender, where you live in Ohio, how and how often you pay your premiums, your past medical claims, whether you use tobacco, and so forth. But the charts will give you an excellent idea of what the different policy types (“letters”) cost compared to each other, so you can decide which of these most interest you, and also as to which companies have low premiums.

One piece of information no longer shown in the Department’s charts is how the policies are “rated.” Based on past experience, most policies in Ohio are “Attained-Age-Rated” policies, and the premiums you pay for these will tend to increase as you get older. On the other hand, a few policies are “Issue-Age-Rated” policies, and won’t increase because you get older, but will increase because of new technology and medical inflation (as will Attained-Age-Rated policies). Therefore, if you buy an Issue-Age policy, you will perhaps pay a higher premium at first, but you will protect yourself against some future price increases as you age. (Based on past experience, AARP/United HealthCare, Aetna, Bankers Fidelity, Everence, and Transamerica have sold these, and, if interested, you may wish to call them about these.) With this exception, remember that for each policy type, the Medigap 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 a factor of 2 or more!

This data was derived from the Ohio Department of Insurance website www.insurance.ohio.gov in June 2012. Premiums were reported in May 2012 and can change at any time. The dollar amounts shown below are the monthly cost of the policies.

Medigap Policies – Age 65 – Ohio

Policy A: The lowest price for a policy is $70, the highest is $178, and the average is $107. Some 39 different policies are available. Five SELECT policies, the lowest for $82, the highest for $143, are available. This “A” policy is the “basic” policy.

Policy B: The lowest price for a policy is $97, the highest is $203, and the average is $133. Some 20 different policies are available. On the whole, these cost 24% more than a basic policy. Three SELECT policies, the lowest for $80, the highest for $149, are available.

Policy C: The lowest price for a policy is $118, the highest is $230, and the average is $148. Some 27 different policies are available. On the whole, these cost 38% more than a basic policy. Eight SELECT policies, the lowest for $107, the highest for $160, are available. These “C” policies are popular.

Policy D: The lowest price for a policy is $96, the highest is $164, and the average is $123. Some 17 different policies are available. On the whole, these cost 15% more than a basic policy. Six SELECT policies, the lowest for $87, the highest for $114, are available.

Policy F: The lowest price for a policy is $121, the highest is $194, and the average is $150. Some 38 different policies are available. On the whole, these cost 40% more than a basic policy. Nine SELECT policies, the lowest for $107, the highest for $154, are available. These “F” policies cover all Medigap benefits and are popular.

Policy F – High Deductible: The lowest price for a policy is $26, the highest is $74, and the average is $51. Some 15 different policies are available. On the whole, these cost 52% less than a basic policy. One SELECT policy is available for $41. The deductible in 2012 is $2,070.

Policy G: The lowest price for a policy is $96, the highest is $170, and the average is $129. Some 25 different policies are available. On the whole, these cost about 20% more than a basic policy. Seven SELECT policies, the lowest for $85, the highest for $127, are available.

Policy K: The lowest price for a policy is $48, the highest is $86, and the average is $72. Some 8 different policies are available. On the whole, these cost 33% less than a basic policy. One SELECT policy is available, for $54. 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 $74, the highest is $121, and the average is $101. Some 8 different policies are available. On the whole, these cost 6% 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 $90, the highest is $147, and the average is $121. Some 8 different policies are available. On the whole, these cost about 13% more than a basic policy. No SELECT policies are available. This “M” policy is very new.

Policy N: The lowest price for a policy is $82, the highest is $150, and the average is $104. Some 28 different policies are available. On the whole, these cost about 3% less than a basic policy. Four SELECT policies, the lowest for $78, the highest for $105, are available. This “N” policy is very new.

If you email me at gjacobs23@windstream.net, I will send you a one-page Excel sheet which has more specific information.