Medicare Supplement Part 3

Medicare Supplements

Resources Links & Downloads

Theoretical-Premium-Outlook-Plan-G-vs.-Plan-F-Worksheet

 

Medicare Supplements 2 Main Differences

One way to help clarify the difference in all the choices when it comes to Medicare supplement plans is to make it simple.

There are two main differences when choosing a plan:

  1. Cost
  2. Underwriting

Cost:

All letter plans provide the same level of coverage from insurance company to insurance company.  Plan G is the same with all carriers.  The difference is their monthly premium, which can vary greatly.

Example: Quote for 65-year-old Female Boone County, MO (65201) Plan F

$150.17 per month – $262.00 per month (a spread of $111.83 per month)

The other half of cost is future rate increases.  While we have no way of knowing what the rate increases will be next year or a few years out, we can look at historical data to work theoretical rates.

Underwriting:

Underwriting will vary from insurance carrier to insurance carrier.  What one company may instantly decline, another company will take standard rate.

When planning what carriers to offer, all three of the above must be considered:

  • Current Premiums
  • Potential Future Rate Increases
  • Underwriting Guidelines

Showing Your Client Options

It is important to give your clients options, depending on their health and financial needs.  What plans to illustrate to your clients may be dependent on what insurance carriers you represent and plans they offer in your area.