Illinois Medicare Supplement Plans
Illinois is one of the major markets for Medicare Supplements in the United States because of its rapidly growing senior citizen population. According to the Chicago Metropolitan Agency for Planning (CMAP), from the current number of one million individuals aged 65 years and up, the number is expected to grow by 80% come the year 2050 as people increase their life expectancies. This is in Chicago alone.
This is good and challenging news for Medicare and Medicare Supplement providers. With the demand for healthcare services touted to grow rapidly, more insurance providers will be open to offering products that will benefit people in their twilight years. When looking for Medicare Supplements in Illinois, it is important that you look at what several insurers offer first before making a decision. The mix of benefits and pricing will vary, but the standard benefits assigned to Medigap, as mandated by the federal government, are uniform anywhere.
There are 10 standardized Medigap plans, but insurance agencies are not required to offer all of these. Companies are allowed to be selective in their product offerings, though they will need to follow basic guidelines in selling such policies. If you are about to turn 65 years old or are looking to switch to another Medigap plan, be sure compare Illinois Medicare Supplement policies available in your area to see which one best satisfies your budget, lifestyle, and past and projected health status.
Cost of Illinois Medicare Supplements
Medigap plans are charged monthly and this will usually be automatically deducted from your bank account. Some insurance agencies in Illinois, however, do accept check payments or accept other special agreements. If your prospective insurer uses auto-debit, be sure to check their guidelines on debit practices so you know what to expect when a deduction is made and when to expect it.
Medicare Supplement plans also tend to increase yearly, so this should be part of the questions you will ask when you shop around for the right provider. Some seniors, because of the auto-debit function, do not notice that their monthly premiums have been increasing. This should be clearly stipulated in the agreement that you sign; and watch out also for any clause that mentions premium increases so you can ask for clarifications.
Take note that Medicare Supplements in Illinois work the same as other Medicare Supplement products in most states. You pay a monthly premium for your chosen policy on top of the premium that you are already shelling out for your Original Medicare Part B membership.
How much do Medicare Supplements cost in Illinois? As of 2018, the average cost of Medigap plans in the state is at $149 per month, or $1,788 per year. Illinois’ average is considered mid-tier when compared to the average price in other states, where Nevada takes the lead at an average of $162.25 per month and Hawaii turns out to have the lowest rate at $109.16 per month.
The price of $149/month is merely an average of the insurance providers’ rates for Medicare Supplement products, and this fee can go higher or lower depending on the company selling it and the type of Medigap plan you selected. The more comprehensive policies such as Plan F and Plan G are likely to have a higher per-month fee.
Applying for a Medicare Supplement in Illinois
Before you can apply for any Medicare Supplement in Illinois, you first have to be enrolled in both Original Medicare Part A and Part B. Medigap plans, though sold through private companies, are not independent products and are only valid when used alongside Part B. It is important to be aware of how Illinois insurers price their Medigap products so you can better predict your spending and coverage expectations as the years go by. You might be tempted to choose the least expensive Medigap plan now, but then find out later that the out-of-pocket expenses are bigger when a health emergency does happen.
The Best Time To Apply For Medigap
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 Medicare Supplement policy you want in Illinois and from any insurance provider in the area. Your application will be guaranteed approved, without any medical underwriting and without being charged higher fees due to a past or current health issue.
Things To Remember About Medigap Plans in Illinois
Note that beginning January 1, 2020, Medigap plans sold to new Illinois Medicare members will no longer include the Part B deductible benefit. That means that Medicare Supplement Plan C and Plan F will not be sold to new enrollees. If you already have these two plans or the high-deductible version of Plan F, you may continue to use them. The same applies if you are eligible for Medicare by the said date but did not enrol yet.
Illinois has consistently been part of the roster of states with the highest number of Medicare beneficiaries, mostly because of its population. Similar to CMAP’s projection, the Policy Academy State Profile says that the number of Illinois residents aged 60 years and up is growing more rapidly than the rest of the age brackets. By the year 2030, it is expected that this demographic will account for 22.3% of the state’s population, from 17.4% in 2012 and 18.9% in 2020.
The cost of Medicare Supplements in Illinois can vary from insurer to insurer so it’s wisest to do a comparison first before making your choice. Find out which insurance companies offer Medigap plans and which of the ten standardized policies they offer. Other factors to consider before choosing include whether they offer special discounts for couples, women, non-smokers, those willing to pay annually, buying other insurance policies other than Medigap, and more.
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 for Illinois seniors. Get in touch with us at 1-800-791-0150.
