If you are trying to find an affordable Medigap policy to supplement Original Medicare, chances are you’ve heard that the cost of Medigap policies varies by state. With many seniors on fixed incomes, it is important to find an affordable Medigap policy.
However, there’s just one problem. The cost of living in your area may have an impact on the cost of Medigap policies where you live. Some states are more expensive than others. Here, we talk about the top 10 most expensive states for Medigap policies.
Why are some states more expensive than others?
Several factors influence the cost of Medigap plans in each state. Some states utilize a “community rating system” to determine the cost of their Medigap plans. A community rating system determines that premium costs are not different for men and women. This means that individuals of any age can purchase the exact same plan for the same price. Because of this, premiums are typically higher in states that use a community rating system.
Many states with a high cost of living are among the most expensive states for Medigap policies. New York, California, New Jersey, Connecticut, Maine, Vermont, and Rhode Island are among the top 10 most expensive states for Medigap plans. Let’s take a look at the most expensive states for Medigap by rating.
- New York
- Vermont
- Connecticut
- Maine
- Florida
- Washington
- California
- New Hampshire
- New Jersey
- Delaware
New York
If you live in New York or are moving to the state, premiums for New York Medigap policies are significantly higher than those of many other states. The cost of Medigap Plans A, G, and N in New York typically range between $139 and $533 per month. You will pay these prices if you choose to enroll during your enrollment period. The cost of premiums will be different depending on the company that provides coverage and the rating method for your premium.
With a community-rated policy, your premium does not depend on your age. However, the cost of your premium may go up because of inflation and a multitude of other factors. Age does not play a role in your premium cost. The cost is the same for everyone across the board.
An issue-age related system is different. With his system, premiums depend on your age when you first purchase the policy. With attained-age, the cost of premiums may go up as you age. Issue age may go up based on inflation, the cost of living.
Vermont
Vermont has some of the most expensive Medigap policies in the nation. The avg. cost of a Medigap Plan G in Vermont is $165.70 per month. According to experts, Humana offers the least expensive Medigap policy in the state. The cost of this policy runs anywhere from $138.80 to $201.80 per month.
Connecticut
Medigap policies are expensive in Connecticut, and for good reason. Connecticut has a generally high cost of living. Because of this, premiums in this state are quite high. Medigap premiums in Connecticut often cost as much as $227 per month.
Maine
In Maine, the average premium for a Medigap policy runs between $162 and $371 each month. Premiums in Maine are expensive. However, there are alternative coverage options. You can choose Medicare Advantage, if you’d like. However, Medigap plans are still the best option for most people.
Florida
Many people would like to relocate to Florida, because of its weather and beautiful landscape. This is especially true of many seniors who grow tired of colder climates. Although Florida is a great state for comfort, it happens to be one of the most expensive states for Medigap plans.
In Florida, seniors can expect to pay a lot of money for Medigap policies. Medigap premiums in Florida run between $168 and $298 per month, experts say. However, like many other states, your monthly premium will ultimately depend upon your provider and the rate of inflation. Florida, in general, is an issue-age rated state.
Washington
Medigap rates in Washington state range between $99 and $329 per month. According to experts, seniors in Washington need a Medigap plan, because there is no cap on what you can pay for Plans Part A and Part B. Additionally, having a Medigap policy allows you to see any doctor or medical provider in the United States that accepts Medicare. You can also travel overseas without having to worry about the cost of emergency medical care. You can plan ahead for medical emergencies you may experience in the future.
California
California is yet another state where the cost of Medigap plans is high. Medigap premiums in California run between $92 and $206 per month. In California, how much you pay will depend upon your insurance company and “how your premium is rated,” according to Medicareplans.com.
In addition to community-rated and issue-age related rating systems, California also uses an attained-age-rated system. An attained-age-rated system has a different impact on premiums. Price will vary depending on your age, and premiums may increase as you age. Anthem offers Medigap plans in California, amongst many other. If you have Original Medicare Parts A and B, you can sign up for a Medigap policy. Open enrollment in California lasts for six months. Open enrollment begins when you turn 65 and are enrolled in part B. You may switch during the year without health underwriting with the California birthday rule.
New Hampshire
If you enroll in a New Hampshire Medigap plan during the open enrollment period in New Hampshire, you will have to pay between $100 and $317 each month depending on which plan you select. You will pay on avg this amount for Medigap Plans A-N if you enroll during open enrollment. New Hampshire also has a unique set of rating systems. New Hampshire has a community rated system, an issue-age-rated system, and an attained-age-rated system.
With the community rated system, your premium is not determined by your age. Like other states, issue-age premiums only increase when prices go up (inflation), and other factors play a role. Of course, it also helps to know what the best Medigap policies in New Hampshire are. According to experts, Medigap Plan G is quite possibly the best Medigap policy in the state, because it covers almost all of your medical expenses. This plan is ideal for people with a lot of medical expenses under Medicare Part A and Part B.
New Jersey
According to Money Geek, Medigap premiums in New Jersey are among some of the highest in the nation. A Horizon Medigap policy in New Jersey typically costs about on avg $154.62 per month. That is significantly lower than the state’s average Medigap premium of $200.30. Some Medigap plans in New Jersey cover medical issues that arise during foreign travel. These plans cover overseas hospital and doctor visits.
Travel medical insurance does not come with Original Medicare, which is why Medigap policies are beneficial for seniors. However, it’s important to consider your financial situation. If a state has expensive Medigap policies, it may be worthwhile to select a plan with higher cost sharing especially if you’re healthy. Either way you look at it, Medigap policies are a good idea for anyone looking to save money on health care.
Delaware
If you live in Delaware and enroll in a Delaware Medigap plan during open enrollment, you will have to pay between $142 and $382 each month. If you live in Delaware, it helps to know how to select the right Medigap plan. Experts recommend considering several factors. You will need to pay a monthly premium, which is in addition to your Part B premium. You must pay your monthly premium, whether or not you used your benefits in any given month.
It is also important to explore your plan options. Every plan offers you basic coverage for Part A coinsurance and copays. However, benefits may vary depending on several things. Look at what benefits each plan offers and determine if the available plans meet your needs. You will likely find a plan that meets your needs. However, this may take time.
It is also important to check reviews of different plans to get an idea of what other people think. One of our licensed agents at meidgapcoverage.com can help you sort through the noise to find an ideal plan for your health and budget. Also, be on the lookout for extras discounts. Some insurance companies offer discounts or benefits after you sign up to be a member. You may also be able to get discounts on hearing providers and hearing aids. Some carriers offer household discounts on your premiums if your significant other buys from the same insurance company.
Of course, it helps to know what to look for if you are seeking the best policy. Twenty-seven percent of Medigap beneficiaries are enrolled in Medigap Plan G, while 46 percent of Medigap beneficiaries are enrolled in Medigap Plan F. Ten percent of Medigap beneficiaries are enrolled in Plan N, while the remaining four percent have Medigap Plan C. It is also important to consider your personal health situation when selecting a Medigap plan.
11 Sources
MedigapCoverage has strict sourcing guidelines to ensure our content is accurate and current. We rely on peer-reviewed studies, academic research institutions, and medical associations. We strive to use primary sources and refrain from using tertiary references.
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https://www.moneygeek.com/insurance/health/best-medicare-supplement-delaware/