Cost of Medicare Supplement

If you have a Medicare Supplement plan, you would pay your insurance company a monthly premium for your Medicare Supplement that is on top of your monthly Part B premium that you pay to Medicare.

Each insurance company sets their premium rates for Medicare Supplements differently. Depending on state regulations, each company can decide how it determines its pricing, but in general it is based on your age and where you live. Because each company is selling standardized coverage, it is easier for consumers to compare offerings between companies.

You will pay a recurring premium amount. Depending on your insurance company, the premium will need to be paid by you either monthly, quarterly or annually.

The cost of your Medigap policy may also depend on whether the insurance company does any of the following:

• Offers discounts such for women, non-smokers or married people enrolling together, for paying annually, or for paying premiums electronically.
• Sells Medicare SELECT policies that may require you to use certain providers. If you buy this type of Medigap policy, your premium may be less.
• Offers a “high-deductible option” for Medigap Plans F and J. (Important Note: Plan J will no longer be for sale after May 31, 2010.) For high-deductible plans, you’ll be responsible for more of the initial costs of coverage, with your insurance company providing benefits after you’ve covered the full amount of the deductible.