Medigap plans can be expensive, but the cost can vary depending on many factors such as the plan type and where you live in the United States. In this article we will review how much Medigap plan cost, how you can save money on Medigap and how Medigap can save YOU money.
How much do Medigap plans typically cost?
The cost of Medigap plans can vary widely depending on a number of factors, including the plan type, your zip code, and the insurance company you select. The cost may also be affected by your age and health, as well as whether you use tobacco.
Typically, Medigap Plan F and Medigap Plan G are among the most expensive Medigap plans, but they are also the most popular because of all the medical expenses they cover.
The average cost of Medigap plans can range from $100 to $400 or more per month, but prices can vary significantly depending on location, age, and other factors. To find out how much Medigap costs for you in your area, get an instant Medigap quote. You can see prices in less than 30 seconds and don’t have to speak to an agent.
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How is Medigap NOT Expensive?
While the monthly premium outlined above can certainly feel expensive, it may not be expensive when you factor in all the money Medigap plans can save you in paying for non-covered Medical expenses. Medigap plans can help to save you money on medical bills by covering costs that Original Medicare does not cover. These costs include things like co-payments, coinsurance, and deductibles. The amount of money you can save with a Medigap plan will depend on the specific plan you choose, but the saving can be in the $1000’s.
For example, Medigap Plan G covers all the gaps except the Part B annual deductible. After you satisfy this annual deductible of $240, the rest of the covered services will be paid by the plan.
Keep in mind that Original Medicare (Part A and Part B) does not have an overall out-of-pocket spending cap, so there is no limit on the amount of money you may have to pay for covered medical expenses. Medigap plans can help you save money on medical bills by covering costs that Original Medicare does not cover. The Urban Institute estimates that over 800,000 Americans on Original Medicare will have an out-of-pocket cost of over $15,000 in 2023 (source). A Medigap plan would pay for most or all of these out-of-pocket costs. So if you have a lot of medical expenses, it may be expensive NOT to have a Medigap plan.
Why do Medigap cost more expensive in some states than others?
Medigap plan costs can vary from state to state because of several factors, including:
1) State regulations
Each state has its own regulations regarding Medigap plans, which can affect the cost of coverage. For example, some states have limits on how much insurance companies can charge for Medigap plans, while others do not. Also, some states require an insurance provider to offer guaranteed issued plans year round to all applicants, regardless of their health. This can increase plan cost dramatically.
2) Competition
The level of competition among insurance companies in a state can also affect Medigap plan costs. In states with more competition, prices may be lower.
3) Healthcare costs
Healthcare costs can vary from state to state, and this can affect the cost of Medigap plans. In states where healthcare is more expensive, Medigap plans may be more expensive as well.
4) Demographic factors
The age and health of the population in a state can also affect Medigap plan costs. In states with an older population, Medigap plans may be more expensive because of the higher likelihood of claims.
It’s important to consider these factors when comparing Medigap plan costs from state to state, as well as to shop around to find the best plan for your needs and budget. Contact the team here at Senior65.com at 800-930-7956 and we can help you select the best plan for you. There is no hidden fee or cost to work with our licensed independent agents. Since Medigap is regulated, no one can sell the same Medigap plan for less than Senior65.com.
How can I save money when selecting expensive Medigap plans?
There are several ways to save money when selecting a Medigap plan, such as:
1) Compare costs and coverage
Compare costs and coverage options from different insurance providers to find the best plan for your needs and budget. Compare plans of the same letter, because they all have the same standardized benefits.
2) Sign up for Medigap during your initial enrollment period
During open enrollment, you can enroll in a Medigap plan without answering health questions, and insurance companies can’t charge you more based on your health.
3) Consider a high deductible Medigap plan
In some states (we are looking at you New York!) the cost of standard Medigap G is prohibitive. A Plan G high deductible is less expensive and offers the same coverage as standard G once you satisfy the deductible.
4) Take advantage of discounts
Some insurance companies offer discounts for things like being a non-smoker, having automatic payments set up, or living with a spouse. The household discount for two people on the same plan can be up to 15% off for each person. Call us and we can show you which plans have the biggest discounts.
Next Steps with Medigap
While Medigaps Monthly premium can see expensive, they are usually just a fraction of the cost of an individual health insurance plan that you might have had before you joined Medicare. Also, as illustrated above, Medigap can SAVE you thousands in out-of-pocket fees that Medicare expects patients to pay. We can help you research and enroll in Medigap plans. Start by reading our Medigap overview page then get a quote and apply if it is for you.