In Comparing the Best Medicare Supplement Plans, 2020 Introduces Changes
Medigap plans are offered in 10 standardized benefits packages in all states (with the exception of Massachusetts, Minnesota, and Wisconsin). When comparing the best medicare supplement plans, 2020 introduced some new changes; namely the omission of new enrollees (those who are newly eligible on or after January 1, 2020) in Plans C & F.
However, with many policies available, from Medicare Supplement Plan A through N, there are still plenty of coverage options for practically any need. Each of these policies differ according to the benefits they will cover; and the more the benefits that a policy covers, the more expensive its premium will be.
Additionally, premium pricing methods on any single policy will affect your overall cost. A policy that seems to have an inexpensive premium, may at first glance appear to be
the best supplemental insurance with Medicare that you can buy
. However, the coverage may actually end up being much more expensive as you age. With that being said, it is important to note the three (3) different ways that insurance carriers can set their premium prices:
No-Age Rated (also termed Community rated). The premium is the same for everyone with no relation to age. Medicare supplement insurance experts claim that this pricing method is the least expensive over time, although it may not reflect that when you first purchase it.
Issue-age-Rated. Premiums are based on your attained age when you first purchase the coverage. The premium will not go up as you get older, but will increase due to cost inflation.
Attained-age Rated. Premiums start lower, but increase as you age. This is the most expensive policy over time.