Dumb question Re why medigap prices varies for same benefits

[Pluvious]

You’d think this question would be easy to find the answer to, I’ve searched and read so much to no avail argggg !

On the Medicare site I get the list of gap options which shows prices, providers, benefits

The prices for the same benefits is like double between providers - so why would anyone chose the more expensive ones ?

I feel like I’m missing something

Thanks in advance !

[SheltieLover]

1. Because they can?

[Casady1]

2. It is based on the mix in your state.

FL and AZ has the most elderly thus their rates are higher. I am in Atlanta and GA and the mix is considerably younger and our rates reflect it.

[Pluvious]

6. That makes sense...

In that each location (by county I believe) there can be insurer offerings from different companies with their own general rates.

So I can see how this causes the variety I'm seeing in the offerings.

Thanks friend !

[Casady1]

10. Last year

We had supplementals from mutual of omaha. Our bills were $700,000. We paid $205.

[Pluvious]

11. Holy cow !! (nt)

[Farmer-Rick]

3. Medigap was designed to make money for insurance companies

And perhaps destroy Medicare along the way. It's a GOPer plan. It ensures health insurance corporations will hound you forever trying to con you into buying the most expensive crap they have.

The robocalls are endless.

[Casady1]

9. That is medicare advantage

Medigap is supplementals

[Farmer-Rick]

13. What's the difference?

I honestly thought they were the same. How are they different?

Never mind I see the explanation below.

[Ferryboat]

4. The price of insulin for example

Medicare part B is capped at $35. Government sponsored.

Medicare Advantage programs is private insurance taking advantage of the term "Medicare" to sow confusion. Insulin is not capped and they may charged as they wish.

Others who have posted here have also made valid points.
Also confusion is baked in for a reason.

[Pluvious]

7. I'm starting to get the picture... Thanks! (nt)

[Desert grandma]

5. Medigap meaning Medicare Supplement Insurance?

Hubby and I have original Medicare and a supplement that covers the 20 percent that Medicare doesn't That is different from Medicare Advantage which has similar benefits as Medicare but usually requires co-pays and a restricted network of contracted providers, although most of them also have prescription drugs included. Medicare supplement plans have different benefits so you need to look carefully at them. We have the G plan that covers everything that Medicare doesn't except for the part B deductible. It even covers the surcharge that the Mayo Clinic charges Medicare patients. These supplement plans are also rated differently. An "Age Attained" rated plan will increase every year as you age and can also increase due to medical inflation in your area. "Age Issued" plans will never increase based on age. The cost is based on your age at the time you take them out. Naturally, it is least expensive if you choose it as soon as you are eligible for Medicare. It WILL NOT increase on your birthday each year but can increase if the cost of medical care in your area increases due to inflation. In the 9 years I have had our supplemental plan, it has increased only by less than $10 total. The other plan is "Community Rated", and the cost is based on the total number and ages and cost of care of all members in a region that are in the plan. The only Community Rated plan that I know of is the one by AARP. The age issued plans are scarce too. Ours is with TransAmerica. Most supplement plans are "age attained" rated plans because then they can start out less but very quickly increase over the others because they will increase every year as you get older AND increase due to higher medical costs. Good Luck to you.

[Pluvious]

8. That's a great synopsis !

Thank you for taking the time to write out this report of your experience and observations.

It's very helpful !

Didn't know about things like the surcharges that can surprise you.
All the listed choice were "Age Attained," but it's good to know what to watch for.

My goal is structure our coverage to best protect us from the crippling situation of catastrophic costs that can bankrupt us.
So this means the Plan D/G with supplement plans.
At least it looks like our monthly health insurance will drop a bit from our original insurance (ugh).

Thanks again !

[Desert grandma]

12. You are very welcome!

It is quite complicated ( probably by design) and there are lots of choices. My advice to anyone looking is to search for an "Age Issued" plan because in the long run it will not increase as much as the others. That is especially important if you are just now getting on Medicare. You will not have to go through underwriting. If you wait, the insurance supplement plans can make you go thru underwriting before they will accept you. Transamerica and Bankers Life were the only 2 age issued plans in our area. Good luck! IMO original Medicare with a supplement is the best coverage, although I do know people who like their advantage plan.

[Farmer-Rick]

14. Thanks for the info. You know your stuff.

But to be honest.

They both sound the same. Just extra insurance to cover what Medicare doesn't cover at extra expense, with convoluted rules and regulations designed to confuse and not pay out.

But damn, you know your insurance plans.

I have TriCare for Life, which is also very confusing. I frequently just go to the VA which takes care of me for free.