What Factors Influence Medicare Supplement Plans Premium?

Medicare supplements are regulated by the Federal Government.  The key factor is in determining the right Medicare Supplement Plans for an individual as the premium to be paid monthly. The Medicare Supplement monthly premium is based on 2 things:


  • The Medigap plan type you choose (Plan G, F, N, etc)
  • The company you purchase from


Generally, all the states provide Medicare Supplement plans of 10 types. The benefits are the same for each type of plan, indicating that the benefits stay same, regardless of the company you buy from or the place you lice, except for Minnesota, Massachusetts and Wisconsin.

The monthly premiums are set by Medicare supplement insurance companies on their own and so the costs vary within companies. For instance, a Plan F bought from Blue Cross Blue Shield may be pricey than a Plan F from Mutual of Omaha, though both provide same benefits.


How do Companies Set Prices?


The setting of prices is based on three ways:


Community-rated: The price is the same for every member, whatever may be the age. This is the reason that it is termed as ‘Community’. Nevertheless, each year the premiums increase with respect to the inflation and several other factors. Nowadays, you cannot find Community-rated plans and even if it is available, it is expensive for people under 75 and for over 75 years it is found to be competitive.

Issue-Age-rated: The age used for the policy pricing is locked with the start date of the policy. The premiums increase often with the inflation and considering the factors every year. The issue-age-rated policies also have become rare offerings and when found they are very expensive.

Attained-age-rated: The common pricing model in most areas is Medicare Supplement plans. The initial pricing is based at the policy time on your age when signed and you receive the increases age-related as per your age. The premiums will increase with every year even with age-related based on other factors and inflation.


Other Factors influencing Premium Cost


  1. Gender

There are few insurance companies offering lower rates for women on Medicare supplements plans. As per statistics, women live longer. Thus, they obviously pay more over their lifetime for their coverage. Besides, they also enjoy better health and the claim is mostly less.


  1. Location

The place you live definitely makes a difference in paying for Medigap premiums. The average wealth is calculated by the insurance companies and the premium price is set on that basis so that the residents are able to pay.


There are other factors as well such as the age, tobacco use, inflation, household discounts and so on.

How does Medicare advantage plans work?

Medicare advantage plans also known as MA plans or part C plans, they are offered by private companies which are only approved by Medicare. The moment you join Medicare advantage plan you will enjoy the benefits of being covered by Medicare. Medicare advantage plans provides Medicare part A which is hospital insurance and Medicare part B which is medical insurance coverage, note that the original Medicare does not provide the named Medicare coverage.

Services covered by Medicare Advantage Plans

These plans cover all the Medicare services and they can also offer some extra coverage such as hearing, vision or dental coverage. When it comes to the payment part, you will pay according to the factors that comes along with the Medicare advantage plans.

Rules for the Medicare advantage plans

We all find rules everywhere we go; Medicare advantage plans has its own rules that keep them running. The moment you enroll for these plans the Medicare pays an amount of money which is fixed and done monthly to the companies which are offering Medicare advantage plans. The companies to must follow the rules given by Medicare plans.

Since there are various Medicare advantage plans you will find that they charge different costs and have different rules too.   Find out more here https://www.medicareadvantage2019.org

Drug coverage

Prescription drug coverage which is also known as part D is a Medicare advantage plan that enable a person to cover for the drugs prescribed by the doctor. You can probably join or enroll separate drug prescription Medicare with specific types of plans.

Some of the plans does not offer drug coverage such as Medicare medical savings account plans while others like private free for services choose not to offer drug coverage plan. Make sure you clearly understand every rule given by the Medicare advantage plan that you may choose to join.

Note that if you are already enrolled to a HMO Medicare plan or the PPO plan, and you decide to join another separate prescription drug Medicare you will probably be returned to the original Medicare and get dis-enrolled from the Medicare advantage plan.

Join Medicare advantage plans that will benefit you and your dependent in future. The greatest advantage about this is that your hospital bills will be covered and you don’t have to struggle raising funds in case a sickness crisis arise. Search for the Medicare advantage plan of your choice and join now, it is as simple as that.