My Medigap Rate Went Up, What Can I Do?
If you are a beneficiary of Medicare in Wilmington NC, just like Medicare beneficiaries all over the United States you probably have experienced annual increases in Medigap insurance premiums. Wondering why this is and what, if anything, you can do about it? Here are some pointers you may find helpful.
Why Do Health Insurance Premiums Increase?
Medigap insurance is, as the name implies, meant to cover the difference (or gap) between the actual cost of medical care and the primary portion covered by Medicare. Monthly premium rates are reviewed annually by all providers, usually on your policy anniversary or, in a few instances, on your birthday. On a very few, rare occasions premiums have gone down; but in the vast majority of occasions there is an increase. There are two factors affecting movements in premiums:
1. Changes in Medicare deductibles: because of the increasing cost of medical care, Medicare deductibles increase almost every year. Since Medigap insurance must cover the full amount of Medicare deductibles, it follows that increases in Medicare deductibles will result in increased Medigap premiums.
2. Inflation: like the cost of just about everything else, the cost of medical care continuously rises. This is inflation. Since Medigap insurance covers all or most of the difference between what Medicare pays and the full cost of treatment, if the full cost of treatment increases due to inflation, then the amount Medigap must pay increases and so do the premiums.
In summary, if the total cost of health care increases due to inflation, while the amount Medicare covers decreases, due to higher deductibles, the gap Medigap must covers widens. When this happens, your Medigap monthly premium rises.
Well, What Can I Do?
Get More with Medicare in Wilmington NC
As one of the leading providers of insurance plans in North Carolina, Schnitzer-Slate offers a full range of coverage options for you and your family, including health insurance plans for seniors, dental insurance, life insurance and more. If you want to learn more about supplemental health insurance plans for seniors or any of our other products, just visit our website at http://healthplannc.com/ or call us at 910-392-7020. We'll be more than happy to assist you in finding the perfect plan to suit your needs.
If you are a beneficiary of Medicare in Wilmington NC, just like Medicare beneficiaries all over the United States you probably have experienced annual increases in Medigap insurance premiums. Wondering why this is and what, if anything, you can do about it? Here are some pointers you may find helpful.
Why Do Health Insurance Premiums Increase?
Medigap insurance is, as the name implies, meant to cover the difference (or gap) between the actual cost of medical care and the primary portion covered by Medicare. Monthly premium rates are reviewed annually by all providers, usually on your policy anniversary or, in a few instances, on your birthday. On a very few, rare occasions premiums have gone down; but in the vast majority of occasions there is an increase. There are two factors affecting movements in premiums:
1. Changes in Medicare deductibles: because of the increasing cost of medical care, Medicare deductibles increase almost every year. Since Medigap insurance must cover the full amount of Medicare deductibles, it follows that increases in Medicare deductibles will result in increased Medigap premiums.
2. Inflation: like the cost of just about everything else, the cost of medical care continuously rises. This is inflation. Since Medigap insurance covers all or most of the difference between what Medicare pays and the full cost of treatment, if the full cost of treatment increases due to inflation, then the amount Medigap must pay increases and so do the premiums.
In summary, if the total cost of health care increases due to inflation, while the amount Medicare covers decreases, due to higher deductibles, the gap Medigap must covers widens. When this happens, your Medigap monthly premium rises.
Well, What Can I Do?
- Get competitive Quotes: Medigap plans are grouped under letters. For example, Plan F policies all cover the full cost not covered by Medicare, Plan G policies cover most of the cost not covered by Medicare, and so on. The point is that ALL policies within the same letter plan (Plan F, Plan N, etc) provide EXACTLY the same benefits. This enables you to compare premiums among providers offering the same Plan in your area. A word of caution, however: in making comparisons of premium rates, be sure to also compare the record of annual premium rate increases of each provider.
- Share Some Cost: as indicated above, different plans offer different levels of coverage; they also have correspondingly different premium rates. Plan F offers full coverage and therefore has the highest premium. Other plans offer less coverage at lower rates, which means you will have to foot the bill for portions of your health care. If you can’t afford the increased premium on your existing plan one option is to opt for another plan with less coverage. For example, in Wilmington, NC, Schnitzer State offers several different plans (see http://www.healthplannc.com/medicare-supplements.html).
- Household Discounts:most medigap providers now offer discounts for adults or families living in the same household. For example if you need medicare in Wilmington NC, Schnitzer State offers family discounts (see http://www.healthplannc.com/health-plans.html).
Get More with Medicare in Wilmington NC
As one of the leading providers of insurance plans in North Carolina, Schnitzer-Slate offers a full range of coverage options for you and your family, including health insurance plans for seniors, dental insurance, life insurance and more. If you want to learn more about supplemental health insurance plans for seniors or any of our other products, just visit our website at http://healthplannc.com/ or call us at 910-392-7020. We'll be more than happy to assist you in finding the perfect plan to suit your needs.