Many people today talk about saving money. It is a major topic of discussion. The prices for some things seem to be set in stone as if there is no way to cut your costs. Many seniors believe that Medicare supplement plans fall into the category of “carved in stone.” This is however not always the situation. This is because there are several ways to save money on your Medigap plans.
Here are 3 ways to save cost on your Medigap insurance which lots of senior citizens do not know about:
Household Discount – Probably, this is the easiest way to save cost – you and your spouse having the same plan. Not all insurers provide this, but many companies offer competitive prices. It is an incentive to run all your business (both you and your spouse) in the same company.
If you enroll with the same insurer and you do NOT receive this discount, ask your present company about it. Alternatively, look for a new company that would be less expensive and/or offer that discount.
Payment Mode Discount – Some companies treat this in various ways. Many are not expensive if you pay by bank transfer monthly. However, some are even cheaper if you pay annually or half-yearly. Regardless, this is something to investigate.
Early Bird Discount – Some companies offer an early bird discount for those who enroll within a certain period after the age of 65. This discount is usually reduced over time. However, if you sign up at age 65 or close to that age, the discount can improve a company’s rates.
Note that the actual price for Medicare supplement plans is set. A broker or agent can’t offer a better price than another. However, these discounts offered by the company can affect prices a little and make a company’s prices more competitive than others.
If you do not receive any or all of these discounts and you feel you should be qualified, we recommend comparing coverage to see if there is another company that offers discounts and would be more financially beneficial to you.
Why should Plan C and Plan F policyholders consider switching to a different plan if both are renewable?
Some experts point to a possible rate hike as new members are not added to the plan and the entitlements of existing members are likely to increase with age. If the trend remains constant, the scenario will be similar to when the H, I and J plans were discarded in 2010. Without new, healthier members, there was no balance of claims and rates rose.
It should be noted that the rise did not occur in every locality and some insurance firms did not increase their interest rates in any way. Nevertheless, Plan C and F participants could pay more in the coming years. Of course, this also applies to any plan; it may be due to inflation, the age of the member, or internal company reasons. Prior to making a decision, talk to your insurance carrier and discuss your options.