If you are checking out Medicare supplement plans (or Medigap policies), it’s important to be mindful of how much your premiums could increase in the future. In many cases, a Medigap plan that looks affordable to you today might become too expensive for you down the road. Learning how Medigap plans are priced can help you avoid these unexpected costs. This supplemental insurance broker in Merrillville, Indiana is going to help you figure all of this out below.

How Are Medigap Plans Priced?

Medigap plans have different pricing methods, and this affects how much you will pay now and in the future. These are the three main ways these plans are priced.

The first one is called community rating. Here, everyone within a certain geographic area, regardless of individual age, pays the same monthly premium. This is a good thing because your premiums will not increase simply because you are getting older. These plans can be slightly more expensive if you are younger, but they stay relatively stable over time- except for inflation and other health cost factors. Also, keep in mind that only a few states offer community-rated Medigap plans, not including Indiana.

Another common method is issue-age-rated plans. These are based on your age when you first buy the policy. If you apply for coverage at 65, you will pay less than if you were to start later. Your monthly premiums could still increase because of inflation or other health cost factors, but your age will not be the cause of this increase. Again, only four states offer issue-age Medigap plans- Arizona, Idaho, Georgia and Florida.

Lastly, we have attained-age-rated plans, which are also the most frequently used by Medigap providers. They have the lowest premiums when you first sign up at 65, but the monthly premiums increase as you get older. This means you could see a noticeable increase in your premiums over time, which might be tough on your budget in the long run.

If you still have questions, your supplemental insurance broker in Merrillville, Indiana can help.

How Do You Make the Right Choice?

When looking at your Medigap options, you should look at more than just the initial costs. You also need to think about how these costs will change as you get older. If you want to avoid big jumps in your monthly premiums in the future, you might have to pay a little more at the start. The key is to find a plan that works best for your health needs and budget.

Now that you have a better idea of how Medigap plans are priced, you should compare the different plans that you can buy. Look at the premiums, but also consider how these monthly payments could change in the future. At the same time, consider your current health needs and how they might change as you age. This will help you figure out which plan is the best fit for you now and in the future.

Talking to a supplemental insurance broker in Merrillville, Indiana can also be helpful. They can give personalized advice and help you find a plan that fits your situation perfectly. A good broker will identify your needs and guide you through the process, making sure you are well-informed and that you feel confident in your choice.

Looking for a Supplemental Insurance Broker in Merrillville, Indiana?

If you are looking for the most suitable coverage for the next year, reach out to our team at Senior Care Insurance Services. As the leading supplemental insurance broker in Merrillville, Indiana, our agents take the time to know your situation before recommending any options. With our excellent customer service and competitive rates, we will help you find the best plan for your needs. Contact us today to get started.