Seniors who are 65 or older wanting to enroll in Medigap Plan F can save up to 10 percent on monthly premiums provided they don’t smoke, according to researchers in this field.
Medicare Supplement Plan tends to vary significantly from one state to another, just like state-level compliance & underwriting rules.
In a few states, it can be illegal to charge someone who smokes for their Supplemental coverage while some states might not allow an insurance company to charge men & women a separate amount.
For instance, in states which allow a different price for each gender, it is typical for men to pay five percent more as compared to women when it comes to Medigap Plan F once they become eligible for a Medicare Coverage.
Among the ten Medigap plans offered nationwide, forty percent of the people who’re enrolled in Medigap plan have chosen Plan F, making it a favorite choice among seniors.
On contrary, only thirteen percent of the people enrolled in the Supplemental plan have chosen Plan C.
After comparing an average monthly premium amount of both smokers as well as non-smoker enrolled in Medigap Plan F, in one of the twenty-two states, it was concluded that:
Smokers are likely to pay, on average, 10 percent more for Medigap Plan F.
Non-smokers don’t receive any discount in most states across the country.
The state of Alaska offered the lowest monthly premium for those who don’t smoke. ($128 compared to $140 per month for smokers)
The monthly premium for non-smokers was highest in Maine ($209 compared to $230 for smokers).
- Issue age rated
In this, a person’s age plays a major role in calculating their premium when they initially decide to purchase the plan. But, premiums might increase as a result on inflation & other similar factors every year. At the moment, this type of coverage is restricted to a few states where it is mandatory.
- Community rated
Under this plan, each member, irrespective of his/her age will need to pay the same amount. But, premiums might increase every year as a result of external factors. You might have a tough time finding one of these plans nowadays.
Here, your premium will depend on your age when you initially sign the coverage. Also, the premium might increase slightly as you age. Additionally, premiums might rise a bit each year because of external factors like inflation.