How Do Supplemental Premiums Work?

If you are interested in purchasing a Medicare supplement plan, you should know that there are several different options available to you. While original Medicare is purchased from the government directly on, Medicare Supplement plans are purchased from individual insurance companies. Most major health insurance companies have a separate branch of the organization that works with Medicare beneficiaries, offering supplemental and advantage plans. Fortunately, all supplemental plans are standardized, meaning that no matter where you purchase your supplemental plan you will enjoy the same benefits. 

There are a few things that will determine how much you will be paying for your supplemental plan, including but not limited to the following.

1. Which Insurance Company You Choose

Every insurance company has different rates that they offer for each of their supplemental plans. These rates could be dictated based on how many people currently have each plan- some companies like to limit the number of beneficiaries with each plan. Other companies may offer distinct perks along with each supplemental plan, similar to those offered with an advantage plan. You may want to compare companies based on more than just how much their plans cost. For example, is the health insurance company financially secure? Do they offer good customer service options? Take the time to really look into each company.

2. Your Medicare History

If you have already tried several plans since you turned 65, it may be difficult to get signed up for a supplemental plan. Everyone is allowed one opportunity to try a supplemental plan without the difficulty of medical underwriting. If you have already tried a supplemental plan, it may be difficult to get signed up again. However, with the help of a Medicare professional, things can get sorted out. 

3. The Supplemental Plan You Choose

Each plan offers specific perks. For example, supplemental plan G covers 100% of your Part A deductible, which for the year 2022 is $1,556 per benefit period. The more that the supplemental plan covers, the more expensive the monthly premium usually is. Studying out each supplemental plan can help you to find which benefits you want while balancing the cost of the monthly premium. 

In conclusion, doing a bit of shopping around can help you to save money on your Medicare supplement plan. Take the time to look into what each health insurance company offers as far as price and perks go. You may be surprised by how different each company is, despite standardized supplemental plans. Good luck finding the plan that works best for you!