Some 4.3 million Americans will turn 65 in 2022 more than any other prior year. Turning 65 is a significant milestone. For most it is when eligibility for Medicare begins.
Deciding what Medicare plan coverage is best can be a daunting task for many. Options include maintaining Original Medicare (Medicare Parts A and B). A Medicare Advantage (Medicare C) plan is the preferred choice for 26 million individuals.
For over 14 million Medicare Supplement, often referred to as Medigap, is the preferred choice. Medigap fills in the gaps in Original Medicare coverage. Policies are identified with letters, such as Plan G and Plan N, the two most popular choices among individuals turning 65.
All Medicare Supplement Plan G policies are “standardized” in terms of coverage and amounts that the individual may be responsible for. But, not all Plan G policies cost the same. Insurance companies are free to charge what they want for them. And indeed they do. For that reason, the latest data from the 2022 Medicare Supplement Price Index provides valuable insights for those who’ll be shopping for Medicare plan options this year.
According to the analysis of Plan G rates, a 65-year-old woman in Dallas could pay as little as $99.24 monthly for coverage. The highest rate being charged for Plan G in the Dallas metro-area is $202.16 monthly, a $1,235 annual difference.
The industry study found that no single insurance company consistently had the lowest premium costs. Neither was any one company regularly the costliest. In some markets only 5 or 6 insurers offered Medigap plans. Typically, an individual could choose from between 10 and 20 plans from major insurance companies as well as some lesser-known names.
The following are the lowest monthly costs reported by the 2022 Price Index for a 65-year-old female:
New York – $278.25
Los Angeles – $135.00
Chicago – $116.30
Dallas – $99.24
Philadelphia – $124.51
Atlanta – $116.36
In each of the major markets, the highest available Plan G coverage was significantly higher according to the American Association for Medicare Supplement Insurance (AAMSI). The organization makes available an online directory listing independent Medicare insurance agents by Zip Code. Access is free and private.
Jesse Slome, director of the organization recommends seniors allow enough time to compare available options and make informed decisions. Securing information from multiple sources can ensure you have the best health care coverage suited for your individual needs. It can also save you significantly for many years to come.
