cost of medicare supplement

Are you new to Medicare? Trying to figure out the cost of supplemental health insurance for seniors? Look no further! HealthMarkets has the information you need, whether it’s for supplemental health insurance or Medigap.

The answer really depends on what you are looking for: supplemental health insurance plans designed for seniors or Medicare supplement plans. Although they are often confused because of their similar terminology, they are very different. So before we give you the cost of supplemental health insurance for seniors, let’s review the differences between these two lines of products.

Senior Supplements

Senior supplements are supplemental health insurance plans designed specifically for senior’s needs. Supplemental health insurance includes products like dental, vision, and life insurance. These plans are sold by private health insurance companies and are not Medicare. They can be purchased at any time, though there are age restrictions to certain products (like life insurance).

Medicare Supplement Plans (Medigap)

Medicare supplement plans are related to Medicare. Like Medicare’s “Parts”, each plan letter offers different benefits and has a different premium amount. They are designed to fill the “coverage gaps” in Original Medicare benefits (hence the name Medigap). These products will cover healthcare expenses otherwise left out of Original Medicare coverage, like coinsurance and deductibles. However, Medigap plans do not include dental, vision, or any other supplemental health insurance benefits.

Now that everything’s all cleared up, we can get right to the costs.

Average Cost of Supplemental Health Insurance

The average cost of supplemental health insurance for seniors will depend on the health insurance company, type of plan, and benefit level you select. While these amounts will vary greatly, we can still give you an idea what you may spend. Let’s look at the costs of some common supplemental health insurance plans seniors can purchase:

Supplemental Health Insurance Product Lowest Monthly Premium1 Highest Monthly Premium1
Dental $19 $39
Vision $9
(for one beneficiary)
$16
(for two beneficiaries)
Fixed Indemnity $26.84 $426.75

Cost of Supplemental Medicare Insurance (Medigap)

The average cost of Medigap insurance may be more complicated to find. This is because health insurance companies have three ways that they price Medigap plans: community-rated, issue-age-rated, and attained-age-rated.1

  • Community-rated—premiums are not rated based on your age
  • Issue-age-rated—the age when you purchase the policy will dictate the monthly premium
  • Attained-age-rated—premiums will increase with age

While prices vary greatly between insurance companies, below are the average monthly premiums for each Medigap plan:

Medigap Plan Average Monthly Premium3
A $360
B $449
C $347
D $299
F $326
F (High Deductible) $68
G $290
K $129
L $236
M $361
N $210

Medigap Costs vs Benefits

But don’t just focus on the cost of a Medigap plan. The least expensive plan may not offer all of the “gap” coverage you expect. Before deciding on a plan simply because of the average cost of supplemental Medicare insurance (Medigap), make sure you are comparing the benefits offered by each plan as well.

 

An Agent Can Help You Compare Costs and Benefits

The cost of supplemental health insurance for seniors is easy to find. However, getting all of the coverage you need and can afford is a bit trickier. If you’ve started wondering “ are Medicare supplement plans worth it,” a licensed health insurance agent can help. Not only can an agent help you compare plans and prices within your budget, he or she can help you compare benefits that meet your individual needs. Call an agent today at (800) 488-7621, or find an agent near you.

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References

1 Actual benefits and rates vary by state. The supplemental benefits referenced are taken from PPO Dental Policy Form CH-26121-IP (01/12), Premiere Vision Policy Form CH-26120-IP (01/12), Fixed Indemnity Direct Policy Form CH-26126-IP (10/13), or their state variations which are underwritten by The Chesapeake Life Insurance Company. Administrative offices located in North Richland Hills, TX. Product availability varies by state. A complete list of benefits, exclusions and limitations is available upon request. Please contact a licensed agent and refer to the Policy. | 2 http://www.ct.gov/cid/lib/cid/Medicare_Supplement_Insurance_Rates.pdf | 3 https://medicare.com/medicare-supplement/how-much-will-your-medigap-policy-cost/

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