Medicare Supplement

Comparing the same Medigap letter across insurers in Phoenix

If you live in Phoenix and you're shopping for a Medicare Supplement policy — what most people call Medigap — one fact makes the whole process easier: the letter plans are standardized. A Plan G is a Plan G is a Plan G. The benefits inside that letter are set by federal rules, so every insurer selling Plan G in Arizona is selling the same coverage.

Medicare SupplementPhoenix, AZ

Comparing the same Medigap letter across insurers in Phoenix

What actually differs from one insurer to the next is the price you pay, how that price changes as you get older, whether the company offers discounts, and how strict it is about your health when you apply. Those four things — pricing method, rate history, discounts and underwriting — are what a good comparison in Maricopa County comes down to.

Which letter plans you can buy in Arizona

People newly eligible for Medicare today can choose from Plans A, B, D, G, high-deductible G, 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 benefits inside each letter are fixed by federal law, your first job isn't picking an insurer — it's picking the letter that fits how you use care. Plan G and Plan N are the most common choices for new enrollees. Once you've settled on a letter, you can compare that same letter across the insurers selling it in Phoenix.

The three pricing methods, and why they matter

Insurers in Arizona can set Medigap premiums using one of three methods. The letter plan is the same either way, but the price behaves very differently over time.

Attained-age rating. The premium is based on your current age, so it typically goes up as you get older. Attained-age policies often look inexpensive at 65 and cost more at 75 or 80.

Issue-age rating. The premium is based on your age when you first bought the policy. It can still go up because of inflation or company-wide rate increases, but it doesn't rise simply because you had another birthday.

Community rating (also called no-age rating). Everyone in the same area pays the same premium, regardless of age. A 65-year-old and an 80-year-old with the same plan pay the same base rate.

None of these is automatically "better." What matters is how the price you'll pay in your 70s and 80s compares to what you'd pay today — and that depends on both the method and the insurer's history of rate increases.

Rate history: the number most shoppers forget to check

Two insurers can sell the identical Plan G, quote similar prices today, and end up in very different places five years from now if one raises rates more aggressively than the other. That's why rate history matters.

The Arizona Department of Insurance and Financial Institutions publishes a Medigap rate guide that shows premiums by insurer, and your local State Health Insurance Assistance Program (SHIP) counselor can walk you through how a specific company has raised rates in recent years. Ask about the last three to five years of increases, not just this year's price.

Household discounts and other price levers

Many insurers offer a household discount — sometimes called a spousal or cohabitant discount — when two adults in the same home each have a policy with that company. The size of the discount varies, and so do the rules. Some insurers give it whether or not both people are on Medigap; others require both spouses to hold a policy with them.

Other levers to ask about:

• Whether there's a discount for paying annually or by electronic funds transfer.
• Whether the insurer offers a high-deductible version of Plan G, which trades a higher out-of-pocket exposure for a lower premium.
• Whether a "Select" version is available, which can lower the premium in exchange for using a network of hospitals.

Underwriting: when insurers can ask about your health

This is the part that surprises people. During your one-time six-month Medigap Open Enrollment Period — which starts the month you're 65 or older and enrolled in Part B — insurers must sell you any plan they offer at the same price they'd charge a healthy person. They can't turn you down for your health.

Outside that window, and outside a handful of guaranteed-issue situations, Arizona insurers can use medical underwriting. That means they can ask health questions, review your prescriptions, and either decline coverage or charge you more. Two insurers with the same Plan G on paper can give the same applicant very different answers.

If you're switching Medigap plans later in life, always ask about underwriting before you cancel your existing policy.

How to find the insurers selling in Phoenix

Because we don't publish an insurer list here, use these free, official tools:

• Medicare.gov Medigap policy search. Enter your Phoenix ZIP code to see every insurer selling Medigap in your area, along with the letter plans each one offers.
• Arizona Department of Insurance and Financial Institutions. The department publishes a Medigap rate comparison guide covering insurers active in the state.
• Arizona SHIP. Free, unbiased counseling from trained volunteers who can walk through your specific situation.

The table on this page lists resources you can use to build your own side-by-side comparison of the same letter plan across the companies selling it in Maricopa County.