Medicare Supplement premiums are unique for each beneficiary. Yours will definitely not be the same as your neighbor down the street. In today's video, we're going to explain the factors that determine your monthly premium.
Hi, I'm Lindsay Engle, and I'm the Medicare expert for Elite Insurance Partners and MedicareFAQ.com. If you're like many Medicare beneficiaries, your first go-to to find Medigap quotes is online. You found a website, filled out a form, answered a few questions...only to find out that you actually can't get quotes without speaking to an agent.
You end up frustrated, wondering, "WHY CAN'T I SEE MY QUOTES ONLINE!?!?" Several factors impact your Medigap rates, and these are questions that you can't answer online. This is why you have to speak to a Medicare agent.
Now, we're going to go over which factors will determine your Medigap premium. Before we jump into these different factors, it's important to understand that all Medigap plans are standardized by the government. What this means is that each letter plan has a set of benefits that will stay the exact same regardless of the carrier with which you choose to enroll. The only difference will be the premium you pay.
(1) Your location: What you might pay in one state for the same benefits could be completely different than what you might pay in a different state.
(2) Your gender: Your gender could be a determining factor depending on the state where you live. Because females are mostly overall healthier than males, in some states they will find that they pay around $10-30 less in monthly premiums.
(3) Your age: If you enroll when you're first eligible at 65, you're going to pay less in monthly premiums than you would if you enroll at 75. Additionally, depending on the state where you live, if you're eligible for Medicare due to collecting Social Security Disability Income (SSDI) for 24 months, you can pay up to 3-4 times more in monthly premiums than those who age in at 65.
(4) Tobacco use: For those who smoke, chew, or use vaping products, you can expect to pay up to 10% more in monthly premiums. This is because those who use tobacco tend to have more medical conditions.
(5) Household discounts: Some carriers offer discounts to those who live in the same household, as long as they enroll in a plan with the same carrier.
(6) How you pay: Some carriers will charge you more if you choose to pay quarterly, semi-annually, or annually. Also, because it's more cost-effective for the carrier to process your payment electronically versus by check or credit card, some carriers will discount your premiums if you choose to pay electronically.
(7) The letter plan in which you choose to enroll: As expected when you want more benefits, you will pay a higher monthly premium.
(8) Rating method the carrier uses to determine your supplement policy premiums: There are three rating methods a carrier can use to set the rates for their Medigap policies: community, issue age, and attained age. Attained age rated is the most common model used by carriers today.
(9) Rate increase history of the carrier: You want to make sure they have at least an A or better financial rating and have been in the market for at least five years.
(10) The time you enroll: The best time to enroll is during your Open Enrollment Period.
(11) Some carriers offer a 12-month rate lock: Even if your effective date isn't for a few months, you want to enroll now to prevent any rate increases between now and your effective date.
Hopefully, this video helped you understand why it's impossible for us to give you accurate quotes without speaking to you over the phone to collect more information! Our agents will be able to compare any plan with any carrier that is available in your area to get you the most accurate quote based on your personal information.
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