» Pricing Policies and Medicare Supplement Comparison
Insurance industry has plethora of Medicare supplement companies providing the best supplement insurance plans. Since every company has its own unique products and marketing policies, it only adds on to the confusion of people, who are already burdened with endless number of Federal and state regulations.
The situation of a new insurance seeker is a lot similar to a person walking down a road, who suddenly comes to a point where the single road dissolves into several roads with no sign board to inform where each road is leading to.
To clear out the clouds from the mystery, let’s pick one thing at a time. Before we take on what each supplemental insurance company has in offer for us and make Medicare supplement comparison. First we need to understand the basic structure in a gist.
We need to familiarize ourselves the way insurance companies set prices and what options are available to us. We present the information in a tabular form to make it easier to do Medicare supplements comparison.
Setting Price and Medicare Supplement Comparison
Every company has its own budget limitations and they set prices and rates depending on these limitations and their projected target. It is the right of a prospective customer to know how a supplement company sets its pricing.
It will make you aware as to how much the Medicare supplemental plan will cost now and how the prices will increase in future, it is essential to do comparison. They set insurance rates in three different ways:
- Community Rated (or No-age-rated)
- Issue Age rated (or entry age rated)
- Attained age rated
Let’s take a look as to how each of these pricing policies work. For customer convenience we have presented it in a tabular form for better understanding. The amount given in the examples are not actual costs.
Medicare Supplement Comparison
As can be seen from the above comparison, rates vary widely from one plan to another. An insurance plan with similar benefits is offered is priced differently by each company.
For example: Have insurance quotes from different companies and start comparing these quotes online. Every Medicare supplement company is more than ready to provide you insurance quotes.
One can call the insurance companies or go their respective website to get the quotes applicable in the local area.
Medicare supplement comparison pricing depend on the following factors:
- Discounts (such as discounts for non-smokers, women, married people, discount on yearly payment or for payment through electronic fund transfer, or discounts for enrolling in multiple policies).
- For people without guaranteed issue rights or falling outside open enrollment period; the insurance company uses medical underwriting to decide the premium.
- Companies selling Medicare SELECT policy may allow you to use certain providers. In these policies the insured person is required to pay much less premium.
- The company offers high-deductible options on Medicare Supplement Plan F. People enrolled in Plan F are supposed to pay the first $2,070 of copayments, deductibles and coinsurance before the supplement plan pays anything. The person is also required to pay $250 every year towards emergency foreign travel services.
- People who enrolled in Supplement Plan J before January 1, 2006 are also required to pay yearly deductibles of $250 in case the plan J still covers for prescription drugs. And, with high deductible option in Medicare Supplemental Plan J the insured person is required to $2,070 as deductibles before the policy reimburse anything.