Planning a budget during your retirement is crucial, as the costs of basic living expenses can add up quickly for folks relying on a limited income. Among the trickiest expenses to budget for is health care, as your medical needs can often be unpredictable and the cost of health care continues to rise. If you’re enrolled in Medicare, you’ve made a solid start to protect yourself from a number of health-related expenses during your retirement.
Medicare, however, doesn’t cover all of your health care expenses, and many individuals opt to enroll in a Medicare Supplement Insurance plan to cover pesky out-of-pocket expenses. These plans are standardized throughout the industry, but premium costs can vary based on a number of factors. To help you plan your health care budgeting needs during retirement, we explain how to determine Medicare Supplement Insurance costs and how you can save thousands in long-term expenses during your retirement.
How are Medicare Supplement Insurance Plans Priced?
Medicare Supplement Insurance plans, or Medigap plans, are standardized across the entire industry, but premium prices can vary due to a number of factors. Plans are offered by private insurers, so they may consider different pricing models when determining their rates. Generally, policies are priced in one of three ways:
- Community-rated (or no age-rated) — Your premium isn’t determined by age. Instead, other factors, such as inflation, are used to determine the premium costs.
- Issue-age-rated (or entry age-rated — Your premium depends on your age when you enroll. Your premium won’t increase because of age, but may rise due to other factors, such as inflation.
- Attained-age-rated — Your premium is determined by your current age. As a result, your premium may start low, but could get much more expensive as you get older.
Your costs may be higher or lower based on other factors as well. For example, some insurers offer discounts based on marital status, your smoking preference, or how you pay for your plan. Other insurers may use medical underwriting to determine whether you will even receive coverage or not (if you are outside of your initial open enrollment period).
On average, what does Medicare Supplement Insurance cost per month?
We are often asked what the average premium of a Medigap plan is, but this is a hard question to answer. In addition to the factors we mentioned above, the costs of Medicare Supplement Insurance plans vary based on location. In general, you will pay more for plans in Massachusetts and Maryland than you would in New Mexico or Oregon. With all of these factors in play, an average number isn’t a very useful statistic when making a decision on your plan.
A much better option is to find quotes personalized to your health, your coverage needs, and your location. DirectMedSup can help make this process easy, since we can work with the major insurers in your area to provide you with free quotes based on your specific situation. With these quotes in hand, you’ll be able to pick the best rate for your budget and the plan coverage you need. Selecting the right plan at the right price can help you save thousands of dollars over the life of your policy.
Call us today at 866-254-9197 to see find out how much you can save on your Medicare Supplement Insurance plan today.