Medicare supplement rates come with various plans with each one of the plans giving its unique benefits to Medigap recipients. The plans that exist range from Plan A to Plan J with Plan A offering the shortest list of benefits to recipients. Plan J on the other is the most expensive when compared to other plans.
Medicare supplement rates are also referred to as medigap policies. They are normally the same all over the nation with only some minute differences. The various plans are also affected by timings. Some plans are ideal if one enrolls for them during certain periods. For instance Medicare Plan B is ideal if one enrolls during the period that begins 3 months before the recipients 65th birthday and ends 3 months after. This period is referred to as the open enrollment period. This is the time when insurers accept the recipient without considering their health conditions.
There are various factors that one should keep in mind before enrolling for these insurance plans:
- By paying a higher premium you will not get additional benefits.
- Medicare supplement insurance plans are the same irrespective of the provider. The claim filing requirements are also similar. The private insurance companies normally sell their plans to recipients no matter the person who files their claim. The person who will file the claim will depend on the health provider of the recipient and not the insurance firm.
- Medicare supplement rates are adjusted every New Year, preferably on 1st January so as to cater for inflationary pressures. This in turn increases the rates of Medicare supplements.
- There are normally three methods used by Medicare insurance companies to calculate and set their premiums. Firms that use Attained Age basis have lower premiums than the others. The main factors that lead to the increase in premiums are time and inflation. The rates are usually increased after every three to five years
Other methods used in determining the amount of premiums are Issue Age premiums and Community-rated method. The Issue Age is based on the age of the recipient during the time of the purchase and these premiums are only affected by inflation. The community-rated method on the other hand charges the same premium for everyone living within the same area. Most countries in most cases employ one method in determining their rates.
Any potential or current recipient of Medicare insurance supplements should take their time to understand how their Medicare Insurance Company determines their Medicare Supplement rates so that they can be able to choose the plan that best suits them. They can also be able to prepare for rise in premium rates and capitalize on the plan benefits.