Medicare Supplement

Shopping Medigap in Scottsdale: how the same plan letter can differ by insurer

Scottsdale is in Maricopa County, and if you're weighing a Medicare Supplement policy here, the first thing to know is that a Plan G from one company covers the same things as a Plan G from any other company. The letters are standardized by federal law. What actually changes from insurer to insurer is how they set the price, how that price moves as you age, whether they offer household discounts, and whether they'll ask health questions before saying yes.

That's what this guide walks through — using the Arizona insurer list from Medicare.gov's Medigap policy search — so you can compare apples to apples.

Why the plan letter is the easy part

Medigap plans are labeled by letter — A, B, D, G, G-HD, K, L, M and N are available to people newly eligible for Medicare today. (Plans C and F are only for people who were eligible before January 1, 2020.) Every insurer that sells "Plan G" in Arizona sells the exact same Plan G benefits. A hospital coinsurance covered by Plan G at one company is covered by Plan G at another.

So when you're shopping, you're really shopping the insurer — not the letter.

The table below lists every insurer selling Medigap in Arizona and which plan letters they offer. Some, like AARP - UnitedHealthcare Insurance Company, Humana Insurance Company and United American Insurance Company, offer a wide range of letters. Others, like AFLAC, USAA Life Insurance Company or WoodmenLife, offer a narrower set. Neither is better or worse — it just tells you where to start asking questions.

The three pricing methods, and why they matter

This is the single biggest difference between insurers selling the same plan letter. There are three ways a Medigap policy can be priced:

• Attained-age rated. The premium is based on your current age and generally goes up as you get older. This is the most common method used in Arizona.
• Issue-age rated. The premium is based on the age you were when you bought the policy. It can still change with inflation, but it doesn't go up simply because you had another birthday.
• Community rated. Everyone who has the policy pays the same premium, regardless of age.

A policy that looks inexpensive at 65 under attained-age pricing may cost more at 75 or 80 than an issue-age policy would have. When you call an insurer or work with an agent, ask plainly: "How is this policy rated?"

Rate history is a fair question to ask

Medigap premiums can change over time. Insurers file rate increases with the Arizona Department of Insurance, and those filings are public. Before you commit, it's reasonable to ask an insurer or agent how much that company has raised rates on the same plan letter over the past several years in Arizona.

The Arizona Department of Insurance publishes a Medicare Supplement rate guide that can help you see how different carriers have behaved historically. A company with a steady, modest rate history may be a better long-term fit than one that is inexpensive today but has a pattern of larger increases.

Household discounts and other quiet differences

Some insurers offer a household or spousal discount — a percentage off if you live with another adult, or if your spouse also has a policy with them. The rules vary by company: some require both people to enroll, some just require you to live with another adult over a certain age. Ask each insurer whether a household discount applies to you.

Other things that can differ from insurer to insurer, even on the same plan letter:

• Whether they offer certain add-on wellness programs (these are not part of the standardized benefits).
• Payment options and billing frequency.
• Customer service reputation and claims handling.

Underwriting: when the insurer can ask health questions

This is the piece a lot of people don't hear about until they apply.

During your Medigap Open Enrollment Period — the six months that start when you're 65 or older and enrolled in Part B — any insurer selling Medigap in Arizona must sell you a policy at their standard rate, regardless of health. That's guaranteed issue.

Outside that window, most insurers can medically underwrite. That means they can ask about your health history, and they can decline to cover you or charge more. Some companies underwrite more strictly than others; some run promotions where they accept applicants under looser rules. If you're switching Medigap policies later in life, this is the single biggest thing to check before you cancel anything.

Arizona also has certain guaranteed-issue rights in specific situations (for example, if you lose other coverage). Your local State Health Insurance Assistance Program (SHIP) counselor can walk you through whether one applies to you.

How to actually compare, step by step

1. Decide on the plan letter that fits your needs (Plan G, Plan N and high-deductible Plan G are common starting points for newly eligible enrollees). 2. Pull the list of Arizona insurers that sell that letter from Medicare.gov's Medigap policy search. 3. For each insurer, ask: How is it rated (attained-age, issue-age, community)? What has your rate history looked like? Is there a household discount? Will I be underwritten? 4. Check the Arizona Department of Insurance rate guide for context. 5. Call your local SHIP for free, unbiased help before you sign.