Medigap - AARP/UHC, Anthem?

[zaqxsw]

I will be signing up for Medicare early next year. I have spent months reading and researching Medicare, Medigap, Medicare Advantage, and Part D plans both here, in two books, and by looking at all my options online. I live in Ohio and have spoken to our SHIP state insurance group several times. My previous company offers a 3rd party consultant/broker if I choose to ask for their advice.

I believe I'll be going with a Medigap plan G and the lowest cost Part D plan I can find, as I can get all of my current drugs for next to nothing almost anywhere.

Even after all of the excellent threads I've read here, I still have a couple of narrowed down questions:

1) Is there still an advantage to buying a United Health Care Medigap plan through AARP? Per the most recent posts, underwriting now exists if you want to change Medigap plans in a state like Ohio. While it is the only "community rated" plan in Ohio, I'm unclear what the "community" would be? All of the other Ohio Medigap G plans are "age rated".

2) I understand the 30% initial discount that AARP/UHC offers to new, age 65 signers, and that you lose ~3% of that discount each year for 10 years. I would guess that 3% increase will be on top of any ordinary premium increase they would require? Is that correct?

3) Anthem BCBS offers the same Medigap plan G at a lessor premium (it is age rated). I've had Anthem as our regular, subsidized retirement health insurance for many years and have been happy with them. Is Anthem's quoted, current rate "discounted" also?

4) Any possible way to get a comparison of past increases between the two given an older plan, say Plan F?

Just wondering about what I don't know yet.

 

[Another Reader]

The way it was explained to me is that the discount is effectively the "age rating." It is on top of whatever increase is approved. My understanding is that only AARP/UHC plays that game.

It might be possible to compare prices for a 75 year old or some other age by asking your agent. I live in California, where you can switch between plans of the same letter under the "birthday rule." Although pricing varies between states, it might be possible to compare prices in California for a 75 year old to get some idea of the increases.

I can't speak on Anthem. I have UHC for a pre-Medicare retiree policy and they have not given me any problems on the medical side. However, they have been very strict on prescriptions and wrong on 30 day pill counts. I'm looking at an inexpensive plan from one of Aetna, Express Scrips or Silver Scrips.

 

[MBSC]

Ohio Medigap rates as of 4/2018 are under "Medicare Supplement Premiums" in this link: https://www.insurance.ohio.gov/Consumer/OCS/Pages/OCSPubIndexTab6.aspx

Anthem BCBS just started offering Plan G so it's not on the chart. On their website it gave me a rate of $109 with a rate of $89 for SELECT G. SELECT G uses a hospital network for non-emergency inpatient admissions.

1) Is there still an advantage to buying a United Health Care Medigap plan through AARP?

The way it was explained to me is that the discount is effectively the "age rating." It is on top of whatever increase is approved. My understanding is that only AARP/UHC plays that game.

+1

The UHC plan can be a good option if you have a family history of longevity or expect to live longer than the average person. Everyone age 77+ pays the same premium with UHC. The age increases stop at that point and you only receive the annual inflation increase. Some are willing to pay a little more in the early years to not have age increases in the later years.

3) Anthem BCBS offers the same Medigap plan G at a lessor premium (it is age rated). I've had Anthem as our regular, subsidized retirement health insurance for many years and have been happy with them. Is Anthem's quoted, current rate "discounted" also?

Attained-age plans start with lower premiums but have both age and inflation increases each year. Some attained-aged plans cap their age increases at 80 or 85 reducing UHC's advantage.

4) Any possible way to get a comparison of past increases between the two given an older plan, say Plan F?

An experienced independent broker can give you rate increase history and let you know which attained-age plans cap their age increases. However, past rate increases may not be indicative of increases after 2020. Unhealthy persons aging into Medicare almost exclusively choose the most comprehensive Medigap available. That will be Plan G in 2020 so future increases are uncertain but will be less than F.

 

[zaqxsw]

Thanks for the replies!

 

[wmc1000]

In Indiana the AARP/UHC costs were significantly higher to start and we couldn't see paying that premium price now to "potentially" save later in life. Even with community rated plans there are inflation increases and it appeared it would be sometime in our late 70's early 80's before we might cross into the phase where the age attained plans would be more expensive.

DW and I both went with Aetna Plan G plans so in addition to the lower premium cost we also got a 5% discount when the 2nd person joined Aetna. That discount stays for the life of the plan unless the new CVS/Aetna merger makes changes at some point.