How do I compare Medigap rates from different companies?
Every company sells the same letter plan with the same benefits, so this is a price comparison. Here is what to ask beyond the monthly quote.
- Medigap plans are standardized by law, so a Plan G from one company covers exactly what a Plan G from any other company covers.
- Because the benefits match, what you compare is the price, plus how that price is set and how much it has gone up in past years.
- Inside your six month open enrollment period every company has to accept you, and that is when comparing is worth the most.
Medigap plans are standardized by federal law. A Plan G from one company covers exactly what a Plan G from any other company covers. The benefits are not in play, so what you compare is the price and the way each company sets and raises it.
Compare the same letter across carriers
Pick your plan letter first, then shop. A Plan G quote next to a Plan N quote tells you nothing, because those are two different products. See choosing a plan letter.
The four things beyond the monthly quote
A premium is the monthly bill for the coverage. Two quotes that match today can be far apart in ten years. These four things are why.
- The pricing method. Attained age pricing means the premium rises as you get older. Issue age pricing locks it to your age on the day you bought it. Community rated means everyone pays the same, whatever their age. An attained age quote that is low at 65 can be the highest one at 80.
- The rate increase history. Ask what the company has done to its rates over the last five to ten years. Some open low and then raise sharply. That tells you more about your long term cost than the opening premium does.
- The household discount. Many companies lower the premium when two people in the same home each hold a policy. You usually have to ask, because it is not offered.
- Financial strength and service. You may hold this policy for thirty years. A company you cannot reach on the phone costs you in time and worry.
The pricing method is the item people skip, and it decides what you pay later. Ask which method a quote uses, and compare quotes that use the same one.
Other discounts to ask about
- A non tobacco rate, if you do not use tobacco.
- Paying once a year instead of month by month.
- Electronic funds transfer, meaning the premium comes straight out of your bank account.
- A first year enrollment discount, which sometimes goes away in year two.
Ask what the premium becomes in year two. A discount that disappears is not a lower price, it is an increase you have not seen yet.
How to compare, step by step
- Decide your plan letter.
- Get quotes for that letter from several companies licensed in Texas, using your exact age, gender, ZIP code and tobacco status.
- Ask each one for its pricing method and its rate increases over recent years.
- Ask about the household discount and the payment discounts.
- Compare the first year cost, then estimate year ten under each pricing method.
- Apply to the one you pick, and get the approval in writing before you cancel anything you already hold.
Why timing matters: your open enrollment window
Outside a protected window, a Texas company can put you through underwriting, which means it looks at your health history and can turn you down. So the time to shop is while you are healthy, not when the premium finally starts to hurt.
If you are inside your six month open enrollment period, every company has to accept you. That is when this comparison is worth the most. See your open enrollment window.
Why an independent agency helps here
The product is the same everywhere, so the value is in seeing many companies' rates at once and knowing their health rules and rate histories. An agent tied to one company sees one set of rates. We can run that comparison for you at no cost.
See what supplements cost and why identical plans differ in price. Once you have picked one, here is how to enroll in a Medicare Supplement. To have us run the quotes for you, call our McAllen office at (956) 687 3334, or enter your ZIP code in the plan pricing box on this page.
Common follow-up questions
Is a cheaper Plan G worse coverage?
No. The benefits are set by law and are the same at every company. A price difference comes from how the company prices and raises its rates, not from what the plan pays.
What is the most important thing to ask?
Which pricing method the quote uses, and how much that company has raised its rates in recent years. Those two shape what you pay over the years more than the opening premium does.
Does an agent cost me more?
No. Medigap rates are filed with the state, so the price is the same whether you buy direct or through an agent.
Want this looked at properly?
We are an independent agency in McAllen serving Hidalgo, Cameron and Starr counties. There is no obligation to talk it through.
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What is Medigap (Medicare Supplement insurance)?
Medigap
Gerino Alejos
Licensed insurance agent · License 3128710 · NPN 18243381
Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.