Attained-Age vs. Issue-Age Rates with Medicare Supplement

Medigap Plans vs. Medicare Advantage

You may wonder if a Medicare Advantage plan would be less expensive than having Original Medicare (Part A and B) and a Medigap supplemental plan. This depends on several factors, such as plan coverage benefits, out-of-pocket costs, premiums for each plan and other considerations.

Factors to consider include:

• the specific Medicare Advantage plan.
• coverage benefits (including prescription drugs).
• where you live.
• your age.
• if you have pre-existing conditions.
• Medigap plan rating category.

There are 10 Medigap plans (A to N) all offering standardized benefits by plan regardless of where you live. However, premium and guaranteed issue rights can vary widely from state to state. Also, If you’re newly eligible for Medicare, you can no longer buy Plan C and Plan F as of January 1, 2020.

All Medicare Advantage plans must offer community rating and guaranteed issue to beneficiaries, and many Medicare Advantage plans have no-cost or very low monthly premiums compared to the average Medigap plan monthly premium of $180 in 2019.

A Medigap plan premium may be less expensive when you enroll at a younger age, but based on the rating category, you could end up with much higher premiums compared to Medicare Advantage premiums in the long-term. Often, it depends on your specific situation.

Attained-Age Medigap vs. Medicare Advantage

Attained-age Medicare supplement insurance premiums are higher if you’re older. Premiums also increase over your lifetime. This may make attained-age-rated plans more expensive than a Medicare Advantage plan, which doesn’t factor age into premium cost when comparing costs long term.

But a consideration with Medicare Advantage plans is that they feature network providers, and it may cost you more to see a provider outside your plan network. With a Medigap plan, you can go to any provider that accepts assignment, which means the provider agrees to accept Medicare’s established rates for services.

Overall, Medicare Advantage plans may be less expensive than an Original Medicare plan with separate Part D and supplemental coverage with Medigap. Medicare Advantage plans may be a good option to consider if you’re healthy, and if you want lower premiums and all-in-one coverage for your health and medical needs. Keep in mind, you cannot have a Medicare Advantage plan and a Medigap plan. You’ll still have out-of-pocket costs with a Medicare Advantage plan.

Issue-Age Medigap vs. Medicare Advantage

When comparing a Medicare Advantage plan to Original Medicare with a Medigap plan with issue-age rating for premiums, your age and health conditions may be a factor in the cost of the overall plan.

Remember, with issue-age-rated plans, the older you are when you enroll, the higher your plan premium. Medicare Advantage plans are based on coverage benefits and certain other factors such as where you live, not your age. Unlike Medigap, Medicare Advantage plans also cannot deny you coverage if you have pre-existing conditions.

When deciding between a Medicare Advantage plan and an issue-age-rated Medigap plan, consider all your costs and the benefits offered by each plan over the long term, and the plan rating. Also keep in mind, depending on where you live, you may not have the option to choose an issue-age-rated Medigap plan.

A GoHealth licensed insurance agent can help you determine what supplement insurance is the right fit for your specific situation.