If you are thinking about signing up for a Medicare supplemental plan, you should be aware of how they determine what your monthly premium will be. A Medicare supplemental plan's premium is required on top of what you are already paying for original Medicare. That may sound expensive, but many people actually save money by purchasing a supplemental plan. There are several different factors that insurance agents use to price supplemental plans. These include but are not limited to:
When You Sign Up
Every individual has a 6-month window, starting the month they turn 65, in which they can sign up for a supplemental plan and cannot be denied. This is a wonderful option for people who struggle with preexisting conditions and would normally be denied coverage. Signing up when you are 65 (or whenever you retire) will likely be the cheapest premium you will be offered. It is possible to sign up later on in your life, but you may fall subject to underwriting, waiting periods, and higher premiums.
If you are thinking about kicking the habit of smoking, do it before you turn 65. Just this one small habit can send your premium rates through the roof. Some even estimate that you may end up paying up to 10% more for the same coverage.
There are several different supplemental plans that all offer varying amounts of coverage, named plan A, plan B, etc. Most people are aware of the options. However, did you know that some insurance companies offer select plans (eg: Plan F Select) that are usually much cheaper. These select plans require that you go to specific doctors, but otherwise, the coverage is just the same for less money.
While individual insurance companies usually offer different amounts of coverage for their plans, supplemental plans are different. A supplemental plan A will have the same coverage, no matter which insurance agency you get it through. Select plans may have some stipulations on which physicians you can use, but all else will be the same. This fact gives you a bit of power as the beneficiary. You can get a quote for a specific plan from several agencies, and then take whichever one is the cheapest.
In conclusion, you should shop around a bit before purchasing a supplemental plan. For more information about Medicare insurance, contact a local insurance provider, like Blueprint Insurance Advisors.