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Med Supp rates vary widely by market, index shows

Brian Anderson

A woman turning 65 in Chicago could pay $91.78 monthly for Medicare Supplement insurance. But if she lived in Manhattan, she could pay as much as $476.04 monthly.

That’s according to the 2020 Medicare Supplement Insurance Price Index, released June 11 by the American Association for Medicare Supplement Insurance (AAMSI).

“Consumers are not aware of the significant difference between the lowest and the highest cost for virtually identical Medigap coverage,” says Jesse Slome, AAMSI’s director. “Insurance professionals who market Medicare insurance products can utilize this information to convey the importance of working with someone who will help them get the best coverage for the best cost.”

The organization compiled rates for identical Medigap Plan G rates for 10 major metropolitan areas for its mid-year price analysis. “In every market the lowest rate was at least half of the highest. In some markets the highest rate was nearly four times higher,” Slome notes.

No Medicare insurance company was always the lowest cost for Plan G, and neither was one company consistently the highest. In fact, the study of 20 ZIP Codes found 13 different Medicare insurance companies had either the lowest or the highest prices.

“Some 11,000 Americans turn 65 every day,” Slome adds. “They have to evaluate the pros and cons of Medicare Advantage, compare that with Medigap supplemental coverage and in many cases pick a drug plan. It’s not just overwhelming, it could be a costly and irreversible decision.”

The Association posted the findings on the 2020 Medicare Supplement Plan G Price Index findings on their website. “We also share a few valuable savings tips,” Slome adds. For example, insurers often offer a household discount. “The percentage savings can vary from 3% to as much as 14%,” he says.

The Association makes available an online directory where consumers can find Medicare insurance agents in their local area. “Access is free and completely private unlike other sites that are looking to gather your personal information,” Slome says.

The American Association for Medicare Supplement Insurance is an advocacy and informational organization that strives to create heightened awareness for the many Medicare insurance options. AAMSI supports insurance professionals who market Medicare Supplement insurance. To check out its listing of local Medicare insurance agents by ZIP Code, go to www.medicaresupp.org/find-local-agent/.



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