WHAT TO LOOK FOR WHEN COMPARING MEDIGAP PREMIUM QUOTES

Michael T Braden July 30, 2026 MEDICARE PLANS

DO YOU KNOW WHAT TO LOOK FOR WHEN COMPARING MEDIGAP PREMIUM QUOTES

Medicare Beneficiaries Discussing Medigap Plan Comparisons With Their Medicare Broker

Have you ever dreaded calling a Medicare Broker or speaking with a Medicare Agent to ask about the cost of a Medicare Supplement (Medigap) plan? I am sure most people will always give the person they are speaking with the benefit of the doubt; however, how do you know they are telling you the truth?

When it comes down to what the cost of a Medigap Policy is, there are many things you should know that you will never know unless you work with an honest, ethical Medicare Broker like Braden Medicare Insurance Services.

The vast majority of medicare agents/brokers will usually tell you (or email you) the rates for the top 3-5 Medicare Supplement/Medigap plans. But is that enough information for anyone to make a sound financial decision that could have a long-lasting effect on your present and future healthcare?

What information do you have the right to ask from your Medicare Agent or Medicare Broker when it comes to any Insurance company they recommend? What key items do we use to properly evaluate all quotes and ensure you have all the necessary data to make a solid, informed decision?

SAMPLE OF WHAT A MEDICARE SUPPLEMENT QUOTE LOOKS LIKE

Braden Medicare Insurance's Sample Of A Medicare Supplement Price Quote

BEFORE ANY QUOTE IS RUN, THERE SHOULD BE A THOROUGH NEEDS ASSESSMENT MADE

A needs analysis is gathered through honest, open conversations with any potential client regarding Healthcare, especially Medicare.

A caring, ethical, and honest Medicare agent/broker will ask you about your current health. They will ask about your health history and whether there are any common health issues in your family tree. We will ask about your lifestyle and what is important to you when it comes to healthcare. As an example, think of how you would answer these questions:

• Do you have houses in multiple states, or do you plan to travel regularly in retirement?

• Do you want to be in charge of your own healthcare and healthcare decisions?

• Do you have any preferred or favorite hospitals you would like to use in the future, if necessary?

• Did you know that if you choose a Medicare Advantage plan, the only covered coverage you have once you are outside of your home county is from either an Urgent Care Clinic or a Hospital Emergency Room?

• Is it important to you to be able to see all of your current providers (doctors)?

• What types of things are important to you when choosing who you want to partner with to be your healthcare partner?

• After your initial enrollment into Medicare, do you think it will be easy for you to pass medical underwriting in the future?

• Do you understand the stark differences between how you interacted with your Health Insurer during your working career, and what it will be like with Medicare Advantage or with Original Medicare and having a Medigap/Medicare Supplement plan?

Note: It may seem like a lot of information, but this tells us a lot about how we need to proceed always to put your needs and requests first, not just when you first purchase a policy, but for all of your tomorrows.

HERE IS WHAT WE LOOK FOR WHEN REVIEWING QUOTES

First, you should verify that the Name, Age, Sex, and ZIP codes are correct. This is because location, sex, and age are all big factors in determining what Insurance Carriers charge for premiums. These rates vary from State to state, with the highest overall rates in the Northeastern US, Florida, and the Western US.

After that, let's face it, most agents and most consumers focus on the premium itself. But there is a lot more that goes into recommending a Medigap/Medicare Supplement Carrier. Especially since over 50% of Medicare Beneficiaries never change carriers after purchasing their Medigap/Medicare Supplement policy.

Things we believe every Medicare beneficiary should know and understand about any Medicare Parter/Insurance company they may partner with?

1. How long has the company been operating in your state?

2. What does their longevity tell us?

3. Do you qualify for a Household or Roommate Discount? If so, how much is the discount from each carrier?

4. There are three types of Rating Methods carriers can use, but primarily, each state determines what each insurance carrier can sell and /use in your state. These are Issue Age, Attained Age, and Community Rated. Most experts agree that, overall, Issue Age tends to have the lowest premiums over a lifetime, followed by Attained Age, while Community Rated has the highest.

5. If there is an additional Application/or Policy Fee, it is typically a One-Time-only amount and ranges from $10-$25.

6. Is the Plan you asked for the Plan on the Quote?

7. Is the Effective Date correct?

8. Did your Agent or Broker inform you that every AARP Medicare Supplement plan has a Declining Discount? It's true; their discount starts at 11%, drops to 9% in year two, and decreases by 1% per year for the next eight years.

9. What is the Rating Class? Preferred is the best rate; if you smoke or you do not fit the HWP chart ideally, you may be moved from a Preferred Rate to a Standard I or Standard II Rate in the future.

10. What is the Rate Increase History for any plan that is presented to you?

11. How many lives does the insurance company insure? Both in your state and nationally?

12. What are the company's AM BEST/Standard & Poor's ratings for financial strength?

13. What is the company's Claims History and its current Loss Ratios?

14. Lastly, you should always verify that the Agent/Broker you are working with is contracted with each quote you are presented with.

15. What does it mean when you see a name like Aetna, Humana, Cigna, or HealthSpring that has only a minimal number of years in the Market? This happens a lot; it is a red-flag indicator everyone should be aware of. Typically, when Loss Ratios and Claims Histories become too high, companies will leave the market and then reapply to the State Insurance Department with paperwork showing a new Parent Company Name.

DID YOU KNOW..............

One frequently asked question is what goes into rate increases that any company might take in the future? Most of you will be surprised by this answer, but the truth is your own individual procedures and claims history have no bearing whatsoever on any future premium rate increases. The truth is, when it comes to any premium increases to Medigap/Medicare Supplement policies, it is up to the individual Insurance company/carrier to request a percentage increase for each plan in the entire state. So if you have a Plan N, and Plan G gets a 10% increase, you may not have an increase at all?

Historically, the largest premium increases have been for Plan F, Plan C, Plan G, and Plan N. The plans with the lowest premium increases are High-Deductible Plan F and High-Deductible Plan G.

WRAPPING THINGS UP

We appreciate you reading this article about what you need to know about how Medicare Supplement/Medigap premiums are set. If this got your mind racing and you have a few questions you can't find the answers to, please reach out to us at www.bradenmedicare.com or email me directly at mike@bradenmedicare.com.

There really is a lot of information that you have a right to know, and chances are, after reading this, you may know a lot more than the average Medicare agent.

The last thing I need to impart to you is this: It is illegal for a Medicare Agent to mention, compare, or comment on any Medicare Policy/Plan that they are not qualified/contracted/licensed to sell.