Medicare Supplement

Before You Call a Medigap Agent in Glendale, Read This

Glendale, Arizona — If you have shopped for a Medicare Supplement (Medigap) policy in the West Valley, you have probably noticed something confusing: two insurers can sell what looks like the exact same plan, but the paperwork, the pricing method and the questions they ask can be very different. The coverage itself is not different — a Plan G is a Plan G — but almost everything around it is. Here is how to line those insurers up and compare them fairly.

The letter is the coverage — the insurer is the wrapper

Medigap plans sold to people newly eligible today come in these standardized letters: A, B, D, G, G-HD, K, L, M and N. Plans C and F remain available only to people who were eligible for Medicare before January 1, 2020. Because the letters are standardized by federal law, a Plan G from one Arizona insurer pays the same share of Medicare-approved costs as a Plan G from any other Arizona insurer. So when you are comparing insurers for the same letter, you are not really comparing benefits. You are comparing four things: how they price the policy, how their prices have moved over time, what discounts they offer, and how they underwrite.

Glendale is in Maricopa County, and the insurers listed in Arizona's Medigap market are the same statewide. The table below lists every insurer that files Medigap plans in Arizona and which letters each one sells. Skim it first, then use the sections below to compare the ones you are considering.

Pricing method: three ways insurers set the rate

Every Medigap insurer in Arizona uses one of three pricing methods, and this single detail can shape what you pay years from now.

• Attained-age rated. The premium is based on your current age and generally rises as you get older. It often starts lower at 65 and climbs from there.
• Issue-age rated. The premium is based on the age you were when you bought the policy. It does not go up just because you had a birthday, though it can still rise for other reasons.
• Community rated (also called "no-age-rated"). Everyone who buys the same policy from that insurer pays the same base rate, regardless of age.

None of these methods is automatically better. What matters is matching the method to how long you expect to hold the policy and how you want your budget to behave over time. The insurer, or their filings with the Arizona Department of Insurance, will tell you which method applies.

Rate history: what has the insurer done in past years

Even with the same pricing method, two insurers can behave very differently over time. All three methods still allow rate increases based on medical inflation and claims experience. That is why looking at an insurer's Arizona rate-increase history matters at least as much as the first-year quote. The Arizona Department of Insurance publishes rate filings and consumer guides that show how insurers have adjusted premiums in prior years. Ask any agent or insurer to show you five years of increases for the specific plan letter and pricing method you are considering.

Household discounts and other features

Many, but not all, Medigap insurers in Arizona offer a household discount — a reduction if you live with another adult (spouse, partner or, at some insurers, another adult in the home). The amount, and the rules for who counts, vary by insurer. Some insurers also offer a small discount for paying annually or by electronic funds transfer. These are worth asking about, because they apply to the same standardized coverage.

Names like AARP - UnitedHealthcare Insurance Company, Aetna Health and Life Insurance Company, BlueCross BlueShield of Arizona, Humana Insurance Company, Mutual of Omaha Insurance Company and State Farm Mutual Automobile Insurance Company appear in the Arizona filings for several plan letters, but so do smaller carriers you may not recognize. Compare the ones that offer the letter you want and see which discounts you actually qualify for.

Underwriting: when the insurer can ask about your health

This is the piece most people miss. During your one-time six-month Medigap Open Enrollment Period, which starts when you are 65 or older and enrolled in Part B, any Arizona insurer must sell you any Medigap plan they offer at their standard rate, regardless of health. You also have "guaranteed issue" rights in certain situations, like losing employer coverage.

Outside those windows, most Arizona insurers use medical underwriting. That means they can ask health questions, and they can decline your application or charge a different rate based on the answers. Two insurers looking at the same person can reach two different decisions, because each has its own underwriting guidelines. If you are switching from one Medigap policy to another, always confirm you are approved by the new insurer before you cancel the old one.

How to actually run the comparison

A clean way to compare insurers for the same letter in Glendale:

1. Decide on the plan letter first (for example, G or N). The letter defines the coverage. 2. Pull the list of Arizona insurers that sell that letter from the Medicare.gov Medigap policy search at medicare.gov/medigap-supplemental-insurance-plans, using a Glendale ZIP code. 3. For each insurer on your short list, note the pricing method, any household or payment discounts, and — if you are outside your open enrollment or guaranteed-issue window — whether you would need to answer health questions. 4. Check the Arizona Department of Insurance rate guide or filings to see how that insurer has adjusted rates on that plan letter in recent years. 5. Call the Arizona SHIP (State Health Insurance Assistance Program) for free, unbiased help walking through your options.