You may have experienced some kind of frustration after receiving an annual letter about your Medigap rate going up. This can be all the more daunting when you are retired and are living on a fixed income. It’s safe to say that Medigap premiums, like everything else, are also susceptible to inflation.
Luckily, there are a few ways that can help you lower your premiums and save money. Here are a few tips followed by many to keep the Medigap premiums down:
Household Discounts
One of the ways to save on premiums is to take advantage of household discounts. Many companies and carriers offer household discounts. In many cases, they offer discounts if both spouses have a policy, or if you’ve taken a family package. A discount of 5% also goes a long way.
Free Physical
Medigap comes with a once-a-year annual physical, free of charge. While this might not be a direct saving, it can help you lower your spending in the long run by keeping your health in check. A free physical examination includes vaccines, bone mass measurements, and screenings for an array of health conditions.
Compare Premium Rates by State
Different states have different rates for Medigap premiums. A quick check to compare rates and search the ones that offer lower premiums can save a lot of money. Ideally, you should be registered in the same state of your residence as mentioned on your Social Security. However, if you reside in more than one state throughout the year, you could look at options that offer lower rates.
Go for A High Deductible
Another way to opt for lower premiums is to consider a high-deductible health plan. These are popular, especially in the under-65 world. Medigap offers the ‘High Deductible Plan F’ that can be taken advantage of, in order to save some money.
Compare Companies
Medicare brands like Blue Cross Blue Shield, Cigna, United Healthcare, etc. are some of the most popular Medigap carriers. However, many off-brand companies also offer competitive rates and added features that are distinctive. In order to select a plan most suitable for you, make sure to compare plans from various companies.
Work with A Broker
If you’re working with a broker to facilitate your Medigap, it would be great to have them on an annual retainer. This will ensure that your broker calls you proactively to renew your policy and make sure you don’t miss out on the best offers.
