Facts About Medicare Supplement Plans in California:
- Over 3.5 million California residents were enrolled in Medicare Part A and/or Part B in 2019, according to data from the Centers for Medicare and Medicaid Services (CMS).
- 475,741 California residents had a Medigap policy in 2015, according to data from America’s Health Insurance Plans (AHIP).
- Plan F is the most popular Medigap option in California, with 373,889 enrollees in 2017, according to AHIP.
Medicare Supplement insurance (also called Medigap) helps senior and disabled California residents pay for certain Medicare co-payments, deductibles, and other costs. Insurance companies can offer state residents one of the 10 standardized Medigap plan options: Plans A, B, C, D, F, G, K, L, M, and N.
Important: Plan F and Plan C are not available to Medicare beneficiaries who became eligible for Medicare on or after January 1, 2020.
California Medigap enrollment statistics
The chart below shows which Medicare Supplement Insurance plans were most popular in California in 2017, according to AHIP.
|Popularity ranking||Plan||Total enrollees in 2017|
Medicare Supplement Insurance pricing methods
Medigap pricing methods are important because they dictate how your premiums may increase in future years. There are 3 different pricing methods to consider before you enroll in Medicare Supplement Insurance:
- Attained-age rated: The premium increases as you age.
- Issue-age rated: The premium is based on your age when you buy and it may increase due to inflation and other factors, but not due to your age.
- Community rated: The same premium is charged to all who enroll.
The majority of Medigap plans in California are attained-age rated, according to the Kaiser Family Foundation (KFF).
Under 65 enrollment rules
Although Medicare Supplement insurance is primarily for senior citizens, it also covers disabled people and those with end-stage renal disease (ESRD). Each state’s insurance department dictates the rules governing Medicare beneficiaries under the age of 65.
According to the KFF, insurance companies selling Medigap plans in California must offer at least one plan to under-65 Medicare beneficiaries who are disabled. California provides protections through an open enrollment period and guaranteed issue rights for under-65 disabled residents.
California Medigap insurance companies do not have to offer the same premium for all under-65 plan enrollees. Insurance companies are allowed to charge under-65 policyholders different premiums from their senior policyholders.