August 2, 2016

Did You Just Receive a Medigap Rate Increase?

Ways we can help…

In most states, Medicare Supplement (Medigap) insurance plans increase their rates annually on policy anniversary date based on policyholder age.   While we carefully selected a plan type and company with stable price changes when you first enrolled, it’s never a bad idea to periodically run a rate comparison every few years.

Unfortunately, the insurance companies don’t alert agents when clients receive rate increases and we often don’t have access to new rate information.  If you send us a note or call, we’ll utilize our quoting tool to compare your current rate to the other Medigap carriers in your state.  Then we’ll be happy to complete an application to see if you qualify with the new company.

Remember that all companies provide the same benefits for a specific Medigap plan type (i.e. – F, G, N). Cost and service are the deciding factors.

While we can’t predict future rate increases when you first enroll, we’ll do our best to help you manage your ongoing premiums to minimize costs over your lifetime.

Other ways to minimize your Medigap costs:

  • Look into household discounts.  If another member of your household qualifies for a Medigap plan, let us run quotes to determine the best option.  Some companies offer household discounts.  Not all carriers require that the other adult be a spouse.
  • Consider some cost sharing.  In many states, Plan G rates have become more competitive.  When the annual rate difference between Plan F and Plan G exceeds $166, clients save money since the only difference between Plan F and G is that Plan G requires policyholders to pay the Part B Annual Deductible ($166 in 2016).
  • Make sure to utilize Part B to pay for your durable medical equipment (DME).  Many durable medical equipment supplies are covered under Medicare Part B so don’t pay out-of-pocket when you don’t have to.  DME is equipment that you can use more than once and items must be
  • Designed to help a medical condition or injury (i.e. walkers, crutches, wheelchairs, hospital beds, diabetes self-testing equipment, etc.)
  • Suitable to use in the home
  • Likely to last for 3 years or more.

Medicare Part B also covers certain prescription medications and supplies used with your DME, even if they are disposable. Examples include medications used with nebulizers and lancets and test strips used with diabetes self-testing equipment.

To find out more, call 1-800-MEDICARE, visit www.medicare.gov or click on the following link – https://www.medicare.gov/Pubs/pdf/11045.pdf