Slome: Consumers are unaware of cost differencesNew market research from The American Association of Medicare Supplement Insurance
— A female turning age 65 in Chicago could pay $91.78 monthly for Medicare Supplement insurance. If she lived in Manhattan (NY) she could pay as much as $476.04 monthly according to the 2020 Medicare Supplement Insurance Price Index released today 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,” shares 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 Medigap Plan G rates for 10 major metropolitan areas. “In every market the lowest rate was at least half of the highest,” Slome notes. “In some markets the highest rate was nearly four times higher.” The Association’s mid-year price analysis examined Plan G plan costs. “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 three percent to as much as 14 percent,” he explains. 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 shares.
Link to top-10 markets study results: www.medicaresupp.org/2020planG/
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 find local Medicare insurance agents in your Zip Code go to www.medicaresupp.org/find-local-agent/.