It is a good idea to buy a Medigap policy, which will takes care of some of the medical bills left unpaid by Medicare. Medigap costs vary from one person to the other because of several factors. The following factors play a major role in how much premium one would pay for a Medigap policy.
How much will my Medigap policy cost?
The first factor is the type of plan you choose. Each plan has its own standard premium amount. Prior to 2010, anyone who qualified for Medigap could choose from plans A to J. In 2010, plans M and N were added to the menu. Each plan offers different benefits, thus the different quotes. Moreover, different companies will offer different quotes for the same plan. Therefore, it pays to get quotes from several companies. By comparing different quotes, you are more likely to pick the right one for you.
The second factor is age. Generally, insurance premiums will be higher for older people. Some companies factor gender and marital status into their quotes. Research has shown that in general, women adopt healthier lifestyles compared to men. For this reason, women may pay less for their policies. In the same note, some insurers consider married people to be low risk compared to single people. For this reason, married people are more likely to get a better deal.
Other Factors that May Affect Your Cost and Premiums
Another factor that affects cost of Medigap premiums is tobacco usage. Tobacco users are likely to pay more for Medigap policy. However, if you have stopped smoking or chewing tobacco, this should not affect how much you pay. As long as you have not used tobacco for at least a year prior to applying for a Medigap policy or negotiating for a cheaper quote, you are likely to pay cheaper premiums.
The health status of an individual also factors into Medigap costs. Individuals who are in good health are likely to pay lower premiums. However, if one’s health deteriorates, he or she could pay higher premiums on renewal of the policy. If an individual is in poor health when purchasing a Medigap policy, the costs are likely to be high, or the individual might fail to qualify for the policy at all. Location is also a factor. Quotes generally vary from state to state.
Sometimes, quotes differ from city to city or from town to town, even if they lie within the same state. It would be best for buyers to shop around for the best prices before picking one insurance provider over another. The mode of payment could bring down the cost of Medigap policies, though only slightly. Certain methods of payment involve higher administrative costs. In this case, most insurer will pass down this cost to the policyholder. For instance, if a policyholder makes automated payments, he is likely to pay lower premiums. Find out from your health insurer about the method of payment that would lower your Medigap cost.
How Do I Get the Lowest Rate on Medigap Policy?
Medigap costs and premiums vary depending on several factors. Age, gender, tobacco usage, location, marital status, and general health status determine how much one would pay for premium. While some of the mentioned factors cannot be changed, others can be improved upon or changed in order to get better policy terms. Need more information on Medigap coverage?