Medicare Supplement cost and the factors that affect the cost of this insurance
People new to Medicare may see the shortcomings in healthcare coverage in basic Medicare Parts A & B and look to additional coverage from a Medicare Supplement or Medigap policy. The question that will inevitably be asked is, what does a Medicare Supplement cost? The cost of Medigap policies will likely not vary based on a person’s health because during the initial enrollment period when a person first begins enrolls into Medicare, acceptance into a Medicare Supplement insurance policy is guaranteed. Thus the cost of the policy in terms of a premium will depend more on what benefits are offered by the Medigap policy than by the health condition of the insured. Typically, the premiums charged by Medigap insurers range from $76/mos. to under $400/mos. These rates can be found at the government’s website: www.medicare.gov. The rates will not vary much if at all by zip code either. That is the benefit of these policies being heavily regulated.
The actual physical health of the insured will be the single biggest factor in determining the true Medicare supplement cost. The cost will come down to the probability the insured will be making use of the hospital benefit and skilled nursing. Therefore, the better a person manages their health will translate into how much the policy will cost. The Medicare website asks the perspective policy holder to rate their health as excellent, good, fair or poor. This is done to bring up total out of pocket costs for the policy that factor in the probability of using the policies.
Medicare supplement cost is more than just the monthly premium. A person’s health will be the biggest determining factor in managing the cost of the policy. There is no substitute for good health and maintaining a plan of daily health management is just as vital as building up the savings needed to cover future health care costs.