We will see how gappy Medigap availability is when you're well past 65

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“Open enrollment” is now open.

First, looked at my part D options. One option is offered at $0/monthly premium, with a $500+ deductible for the year. My current Aeta coverage is SHOCKING/SCARY/ALARMING, increasing to $5.30/month, but the annual deductible is dropping from $505 to $280. Currently a med-free zone, but inclined to leave that alone.

Then looked at the medigap coverages. Cheapest are from a company I never heard of, and Allstate, for $50-$60/month, but I have had past experience with Allstate not paying for things. Of course the premium can be less, if they don’t intend to pay.

Blue Cross charges $101/month, with a $2700/year deductible. Filled out a health questionnaire, and signed a release for health care providers to share information with Blue Cross. I’ll find out their decision in a couple weeks.

Steve

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If you’re literally taking no meds, there’s no harm to choosing the $0/month Part D drug plan. You can change it next year if you have to. You don’t get any brownie points for being a loyal customer. They screw everybody.

Medigap insurers don’t make any claims or benefit decisions. They just pay what Medicare tells them to pay once the claim is approved by CMS. There really isn’t anyway for them to screw up. When I called the Washington State insurance commissioner to get information on customer complaints, the analyst told me, "We get very few complaints on Medigap since there’s not much they can do to cause someone to complain. Just buy the policy with the cheapest premium. " The cheapest Medigap provider in WA State is United American. The reason you never heard of them is because they do almost no advertising and pay very small commissions to agents and brokers. You need to call United American’s 800 number to buy a policy and they’ll refer your name to one of the few licensed volume insurance brokers that do business with them. Then an agent licensed in your state will call you back in about 24 hours. That’s why their prices are low. No way I’d pay double the premium to Blue Cross with the idea I’d be getting superior service.

intercst

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intercst

Very valuable quasi-secret information! thnx

david fb

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Yes, I literally take no meds, doc can’t find anything to treat me for. At my checkup last March, the doc shook his head and said “wow, you have good genes”. In the application it asked for any meds taken in the last year. I put in flu vax and covid vax. because those are the only things that came at me in pill or liquid form.

The Medicare web site has a page that lists all the plans, and handy checkboxes at the side that clearly say what each plan covers, instead of my having to wade through pages of the insurance company’s blather. There are things the really cheap plans don’t cover. The cheapest plan didn’t seem to cover anything.

I would rather see a plan that had a $10,000 or $20,000 deductible, but they don’t offer one. The plan I applied for has a $2700 deductible, but seems to cover every possibility, if things really went pear-shaped. Covers A and B copays, after the deductible, 365 days in the hospital, 100 days in a nursing home, hospice care without limit, all home health care, all medical equipment.

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If you have a $2,700/yr deductible, I’m assuming you applied for a high-deductible Plan G Medigap. All of the Plan G Medigap plans available in your state cover exactly the same list of benefits. The only difference is the premium charged.

{{ Monthly premiums for Medigap policies in Michigan range from about $41 to $1,628 in 2022. For the two high-deductible plans, you can expect to pay a monthly premium of between $32 and $353. Most plans offer a $0 deductible for Part A services, and a $0 to $233 deductible for Part B services. }}

Medicare Supplement Plans, Michigan (MI) Residents | GoHealth

I’d hate to be paying $353/month for something that was only worth $32/month. But that’s why your health insurance company typically occupies the grandest Class A office building downtown and has its name on the football stadium.

Washington State publishes a list of licensed Medigap insurers along with the state-approved monthly premium for each policy offered. That kind of customer-friendly information is apparently unusual in the 50 states and likely prohibited in the Red ones. It’s very useful information to have if you’re dealing with an agent who won’t tell you about a cheaper policy with a lower commission – especially for a company he doesn’t represent.

October - December 2023 Approved Medicare Supplement (Medigap) plans (wa.gov)

intercst

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Really good information you have provided. I applied for a Plan F, which covers the Part B deductible, which G does not. Looking at the list this morning, I find the United American policy you mentioned, which does indeed cost about half of what Blue Cross charges. The same is true at higher ages. At age 90. the Blue Cross coverage is $139 vs $70 for United American.

This is true. Seems insurance companies are nothing but a big pile of money to be used to buy politicians, and coddle the CEO. I can’t remember the name of the insurance company, iirc in Indiana, that had a huge fine art collection, bought at company expense, for the enjoyment of the CEO.

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I figured out why I wasn’t seeing any high deductible Plan-G offerings for my zip code. This is my 1st time signing up, not 65 yet, and on the Medicare.gov site a search using age 64 and my zip code had zero results. But when I put in 65 instead of real age, plans/choices popped up, as low as $32/month instead of the $92/month the Plan-N costs.

The Medicare site states that there is a 6-month open window, upon reach 65 and being signed up for Part-B ( which I am ) to get a Medigap plan, so I need to get the plan-N I signed up for cancelled and wait until after my birthday to get a Medigap plan.

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United American…

Unfortunately, not available in MA.

'38Packard

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Choose wisely. From what I read on the Medicare site, it sounds like you are married to the Medigap plan you choose, unlike being able to flip between Part D plans during open enrollment every year.

As I did not sign up for a Medigap at 65, availability to me now, at 70, is not guaranteed. At present, I have zero health issues. As Trenchrat said though, it only takes one visit to the doc for your life to turn into a mudstorm.

I may well flip Part D, again. Aetna is the second company I have used. Only thing that I could have used that Part D coverage for, in five years, was a Shingrex vax, but the GoodRx coupon was cheaper than the Part D plan.

Steve

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If you turned age 65 after Jan 1, 2020, you’re not eligible for Plan F. You have to buy Plan G.

intercst

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One thing to remember about that is the pool is getting smaller each your because no new members can sign up. So, the rates are likely rise faster than with other plans over time.

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Yes. If your 12-month Plan F premium is more than $240/year higher than Plan G for 2024, it’s worth switching if your state allows it without medical underwriting. (Note: $240/year is the Medicare Part B deductible for 2024.)

Remember, while Medicare has a fixed list of benefits that must be covered for Plan G, the states can use one of 3 different systems to calculate premiums.

{{ There are 3 Medigap premium rating methods

Premiums are set in place by each insurance carrier. Their pricing method can make a difference in how much they charge for policies now and in the future. There are three separate ways that Medigap plans can be rated.

Community-rated

With this pricing, everyone insured under the policy will see the same monthly premium, regardless of age. However, premiums can increase due to inflation and other factors. This means that if you are 65, but your spouse is 75, you will both still pay the same monthly Medigap policy premium.

Issue-age-rated policies

For this type of policy, the premium is based on the policyholder’s age at purchase. Younger policy buyers will see lower prices. The premiums will not change as you get older but can increase for other reasons, such as inflation or other factors.

For example, you buy a Medigap plan at age 65 for $140 monthly. However, your neighbor is 78 when he purchases his policy, so his monthly premium is $185.

Attained-age-related-policies

Unlike the other two pricing policies, this plan is based on your current age. This means that your policy premium will go up as you get older. In addition, they can increase based on other factors, such as inflation.

For example, you are 65 when you buy your Medigap policy. You will pay $120 per month to maintain your coverage. Your premium will go up each year as you get older. At age 66, you may pay $126 per month. At age 67, it might increase to $132.

When you turn 72, you might be paying $165 per month. However, if your sister is 72 when she purchases her Medigap plan, her monthly premium might be $165. It will then go up from $165 yearly as she ages. }}

intercst

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All other things being equal, the difference between premiums F vs G is $3/mo, or $36/year, to not sweat the $240 deductible. I have paid the B deductible both of the last two years.

All the plans offered to me in Michigan are “attained age”. For the halibut, I plugged in different ages to see what the impact was on the premium. For Blue Cross @ 70: $101. For Blue Cross @ 90: $139. For United American, iirc, $52 @70 and $70 @ 90.

Steve

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All of the policies offered to me, from all carriers, used “attained age” pricing, rather than “community-rated”. Does the lack of younger entrants into F plans have any impact on “attained age” pricing, rather than community-rated?

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intercst, you saved me over $600/year with your recent posts on Medigap policies, I was able to get switched over to a Plan-G High deductible, really appreciate you sharing your knowledge on the subject. I think I’m going to buy a planer for woodworking, and that $600 will cover a good chunk of the cost, lol.

I got cross upped because not yet 65, and when I searched for medigap plans using my current age, no high deductible plans showed up. But when I used age 65 in the search, plans did pop up. And I was able to get signed up for it pre-age-65, so I’m all set.

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Better to have that $600/yr in your pocket than lost to excessive Executive Compensation with the insurer.

intercst

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No. Each age band is rated separately. If you’re age 70, and someone who’s 69 gets an expensive medical problem, it doesn’t affect your premium. Similarly, if a new 65-yr-old Medicare beneficiary buys a policy, it doesn’t do anything to help a 70-yr-old.

intercst

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Thanks for the clarification.

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United American (and Globe, which owns United American but also sells its own policies) tend to be the cheapest HD G options, but their rates are nothing special for those who want regular G.