What Does A Medicare Supplement Cost In California?
California is home to one of the largest Medicare markets in the country, so it’s not a surprise that it’s also high up the roster when it comes to Medicare Supplements. If you are looking for information on how much Medicare Supplements cost in California, know that the rates vary depending on the insurance company that provides them. Also take note that not all insurers offer all ten Medigap policies and are allowed to be selective in their offerings.
Those who are about to turn 65 and even those who already own Medicare Supplement plans are encourage to shop around and compare prices first before they settle for a policy, to make sure that they are getting the best mix of benefits. Remember that while the federal government mandates that all benefits of a Medigap plan are standardized regardless of your location and the insurer, the add-ons and pricing can differ. You will need to compare rates and plans to see which one best fits your healthcare needs, lifestyle, and budget.
California Medigap Premiums
Medicare Supplements come with a monthly premium, which you will pay on top of the monthly fee you already pay for Original Medicare Part B. Some insurers offer a base fee when you are a new enrollee, but such fees can also increase once a year, as per practice.
Typically, the monthly premiums are automatically debited from your bank account, so be sure always check if the rates have stayed consistent and if increases have been made without your knowledge. Companies should be able to give advanced notice on planned premium increases. Also check your contract at the beginning to see if it stipulates anything about automatic annual fee increases and what the company’s policies are with pricing changes.
To give you an idea how much Medicare Supplements cost in California, we take cue from the premium fees for Medigap Plan F, which is one of the most popular options in most states. As of 2018, the national average monthly cost for Medigap is $143/month. In California, the reported monthly average is $151.42, while the annual cost is pegged at $1,817. California belongs to the list of the higher priced premiums for Medicare Supplements, with the most expensive so far noted in Nevada, costing $158.66 per month or $1,904 per year.
Be sure to check with your preferred insurer if its pricing is higher or lower than the recorded average, and then see if there are any extra benefits that it has added on top of the standard inclusions.
How Medicare Supplements Are Priced
Medicare Supplement insurance policies in California function in conjunction with your Original Medicare Part A and Part B plans. In short, it is not an independent and stand-alone policy. It is important to understand how the insurance company prices its Medicare Supplement premiums in California so you know what to expect down the line. Pricing may be inexpensive at first, but might increase later; which could be problematic if you are not prepared.
According to official Medicare Supplement guidelines, there are several ways that insurers determine pricing for Medicare Supplement plans in California (and any other U.S. state for that matter):
1. Community-rated or no-age-rated – Premiums charged as the same to all enrollees, regardless of gender or age. Pricing may go up due to inflation, but never because of advancing age.
2. Issue-age-rated or entry-age-rated – Premiums are based on the age you are when you purchased the Medigap plan. Pricing may increase later as a result of inflation, but not because of how old you are.
3. Attained-age-rated – Premiums are based on your current age, so your monthly fees go up as you get older.
Things To Remember About Medigap Plans in California
Residents of California are fortunate to enjoy the state’s unique Birthday Rule. This rule is designed to prevent senior citizens from overpaying. How does it work? Medigap owners are given the chance to shop for better premium rates and offerings annually at the time of their birthdays without being required to undergo medical underwriting. If the correct procedure for the Birthday Rule is followed, seniors can get automatically approved should they want to switch policies.
California has consistently been part of the roster of states with the highest number of Medicare beneficiaries. According to the Public Policy Institute of California, the state’s senior population (those aged 65 years and up) is expected to increase by four million by the year 2030. Many of these seniors are also likely to be childless and/or single, which means a greater need for services that offer support. The same organization projects that over one million seniors will need self-care assistance by the said year and the demand for nursing care facilities will be higher.
When to Apply for a Medigap Policy
The best time to apply for a Medicare Supplement plan is during your Open Enrollment period. This is the six-month window that starts on the first day of the month you turn 65 years old. During this period, you can apply for any California Medicare Supplement policy you want and be approved, without any medical underwriting and without being charged higher fees due to a past or current health issue.
The cost of Medicare Supplements in California can vary from insurer to insurer so it’s wisest to do a comparison first before making your choice. If you are still unsure about how to go about it or don’t know where to begin, our team of licensed Medigap advisers are more than willing to guide you through the process. So that all you have to do is decide, based on the best possible options we have laid out. To find out more, give us a call at 1-800-791-0150.
