Maybe you have decided that AARP Medicare supplemental insurance is the way to go. You may have even compared it to AARP Medicare Complete and other Medicare plans, now it’s time to see if it will fit the budget. Once you know what the monthly premium will be, you can compare it to other companies Medicare supplement insurance plans.
The first step is to determine which Medicare supplemental plan is right for you. Fortunately, once you’ve done the leg work understanding the different plans, you can apply that knowledge to all other companies because Medicare supplement plans are standardized. In other words, a Humana Medicare supplement Plan N will include the same benefits as Plan N with AARP Medicare supplement insurance.
Researching your Medicare supplement insurance options
Aside from collecting dozens of company brochures, the easiest way to compare standardized Medicare supplement plans, is to get general plan information in the Medicare publication; Choosing a Medigap Policy. This booklet will answer almost every question you may have about Medicare supplement policies. The only question it will not answer is what you will pay in monthly premium.
Whether you are looking at AARP Medicare supplement insurance or another company, you will find that the premium will vary based on which standardized plan you choose. Plan F is the most comprehensive and as such, will normally be the most expensive option. Modernized Medicare supplement plans were released June 1 2010 and one plan that is getting a lot of attention (and enrollments) is Medicare supplement Plan N.
Plan N has a much lower premium than Plan F, but requires a little more out-of-pocket by the policy holder to use the plan. The Part B deductible is not covered by Plan N and you may have a co-pay up to $20 for a doctors visit and up to $50 for an emergency room visit. Many healthy people are finding that the savings more than makes up for the potential out-of-pocket expense.
How companies set Medicare supplement premiums
Knowing how a company determines price can be important when projecting your policies cost into the future. Supplemental policies can be rated in three different ways:
- Community-rated- is also known as no-age rated because the same premium is charged to everyone no matter what their age.
- Issue-age-rated- bases the price on how old you are when you buy the policy. Rates may go up due to inflation, but not because you get older.
- Attained-age-rated- calculates you premium on your current age and policies will become more expensive as you get older.
These guidelines relate primarily to age, your premium for a Medicare supplement policy can go up due to inflation and other factors.
Getting a price for AARP Medicare supplement insurance
In today’s online world, the easiest way, by far to get a price for a specific AARP Medicare supplement is to comparison shop online. The beauty of shopping online for Medicare supplement plans is that plans are standardized, so you won’t find the apples to oranges comparisons that are common when looking at Medicare Advantage plans. Visit the eHealthInsurance website to get a quote or if you are reluctant to give your information online you can speak with an agent by calling (888) 310-0376. Agents represent several companies.
When you compare AARP Medicare supplement insurance to other Medicare supplements, you can have hard facts to make an easy decision as to which way to go. In many instances you can receive an early enrollment discount if you are within a few months of turning 65.