Pennsylvania Medicare Supplement
The senior citizen market in Pennsylvania is seen as one of the fastest growing demographics in the country. Projections from the State Data Center and the U.S. Census note that the number of individuals aged 65 years and up is growing a pace that is 20 times faster than the overall population. By the year 2025, it is expected that at least one in every five residents of the state will be a senior.
Rising Pennsylvania Senior Population
This rapid increase is both a boon and a bane for Pennsylvania, which is now thinking of ways to address the sharp demand for assisted care services and insurance programs that cater to people in retirement. Another related issue that raises concern is that as people get older, care becomes more expensive. On the side of the government, this can also pose issues as seniors are by law less taxable.
To better illustrate, the overall population of Pennsylvania is expected to grow by 4% from 2015 figures to 2025. However, the number of people aged 65 years and up will expand by more than 30%. Those aged 65 to 74 years will have increased by 32.8%, those 75 to 84 will have gone up by 39.1%, and those aged 85 and up will have increased by 9.5%.
While the next years are challenging times for Pennsylvania, it is good news for insurance providers that are offering Medicare Supplements. This also means that more insurance agencies will be open to offering products that will benefit people in their twilight years. More choices could mean better offers for residents. The add-on benefits and monthly pricing will vary, but the standard benefits assigned to Medigap will be the same anywhere.
Medicare Supplements have 10 standardized plans, but Pennsylvania insurance agencies are not required to offer all of these. They are allowed to be selective in their offerings, though they will need to follow basic rules that apply to all states. If you are about to turn 65 years old or are looking to switch to another Medigap plan, be sure compare Pennsylvania Medicare Supplement plans to see which one meets your budget, current lifestyle, and past and projected health status.
Who Is Eligible for Pennsylvania Medigap Plans?
Before you can apply for any Medicare Supplement in Pennsylvania, you first have to be enrolled in both Original Medicare Part A and Part B, and be 65 years old. This applies to anybody who is a resident of Pennsylvania meeting the said requirements.
Medicare Supplements, though sold through private insurance agencies, are only valid when used alongside Part B. They are not standalone products. It is important to be aware of how Pennsylvania insurers determine Medigap pricing so you can better predict how much you are going to spend in the future. 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. In addition, increases to monthly premium fee are common (and even expected). Find out what the insurance agency’s policy is when it comes to such increases.
Cost of Pennsylvania Medicare Supplements
Medicare Supplements in Pennsylvania work the same as other Medicare Supplement products in most states. You pay a monthly premium for your selected policy in addition to the monthly fees that you are already shelling out for your Original Medicare Part B plan.
The price of Medigap plans also tend to increase yearly, so be sure to ask this when you go shopping for your insurance provider. Some companies offer an auto-debit feature that takes the payment out of your bank account at specific dates, while others might agree to check payments or other special arrangement.
What is the cost of Medicare Supplements in Pennsylvania? As of 2018, the average cost of Medigap plans in the state is $140.58/month, or $1,687/year. The state of Nevada logs the highest average per month at $162.25, while Hawaii appears to have the lowest average at $109.16.
Take note that the price of $140.58 is an average of the insurance providers’ rates for Medicare Supplement products in Pennsylvania. This fee can go lower or higher depending on the company selling it and the type of Medigap plan you selected.
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. The cost of Medicare Supplements is different per company, so it is wisest to compare first.
When To Apply for a Medicare Supplement Plan
The Open Enrollment period is the best time to apply for a Pennsylvania Medicare Supplement. During this six-month window, which starts on the first day of the month you turn 65 years old, you can apply for any Medicare Supplement policy you want, from any insurance provider in the area. Your application will be guaranteed approved. It will not be subjected to medical underwriting and will not come with higher fees due to a past or current health conditions.
Things To Remember About Pennsylvania Medicare Supplements
Starting January 1, 2020, Medigap plans sold to new Medicare members in Pennsylvania will no longer include the Part B deductible benefit. Thus, Medigap Plan C and Plan F will no longer be sold to new enrollees. If you already have these two plans, you may continue to still use them. The same applies if you are eligible for Medicare by the said date but did not enrol yet.
Another thing to note is that Plan D and Plan G policies purchased on or before June 1, 2020 will offer different benefits from the ones bought before the said date. Plans E, H, I and J are also no longer being sold to new enrollees, although you may continue to keep them if you already have them.
The little details and updates regarding Pennsylvania Medigap plans can be confusing. As of January 2019, there are over 50 insurance providers offering Medicare Supplement policies in the state alone. If you need help on how to go about Medigap plans or don’t know where to begin, our team of licensed Medigap advisers are more than willing to guide you through the process. Get in touch with us at 1-800-791-0150.
