Medicare Supplement

Shopping Medigap in Tucson: how the same Plan G can cost different amounts at different insurers

In Arizona, a Medigap Plan G from one insurer covers exactly what a Plan G from any other insurer covers. The letter is the coverage. So why do premiums for that identical plan vary from one company to the next in Tucson? The answer is in how each insurer prices the plan, how long they have been raising rates, and what discounts and health questions they use. Here is how to compare them without getting lost.

Medicare SupplementTucson, AZ

Start with the plan letter, not the company

Medigap plans are standardized by federal law. That means a Plan G is a Plan G whether you buy it from a national carrier or a smaller regional one. The claims process, the covered benefits, and the way the plan works with Original Medicare are identical.

If you became eligible for Medicare on or after January 1, 2020, you can choose from Plans A, B, D, G, G High-Deductible, K, L, M, and N. Plans C and F remain available only to people who were eligible before that date.

Because the coverage is the same, comparing insurers is really about comparing price, price stability, service and underwriting — not benefits.

Tucson is in Pima County — here is how to find the insurers

There is no single public list of every Medigap carrier in Arizona, and this article does not name them. But you have three reliable ways to see who sells which plan letter in your ZIP code:

• Medicare.gov Medigap policy search. Enter your Tucson ZIP code and it returns every insurer licensed to sell Medigap to you, along with each plan letter they offer.
• Arizona Department of Insurance and Financial Institutions. The state publishes a Medigap rate guide that lists insurers and their filed rates.
• Arizona SHIP (State Health Insurance Assistance Program). SHIP counselors give free, unbiased help and can walk you through the current insurer list for Pima County.

The three pricing methods — this is the big one

Two insurers can advertise the same Plan G and price it very differently over the next decade, depending on how they set rates. In Arizona, insurers generally use one of three methods:

• Attained-age rated. The premium is based on your current age and goes up as you get older. It often looks cheapest at 65 and rises steadily over time.
• Issue-age rated. The premium is based on the age you were when you bought the policy. It does not rise just because you have another birthday, though it can still rise for inflation and claims.
• Community rated. 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 methods is automatically better. Premiums under all three can still increase because of general medical inflation and the insurer's claims experience. That is why rate history matters.

Rate history: the number no ad shows you

Ask any insurer — or your SHIP counselor — for the company's Medigap rate increase history in Arizona over the past five to ten years. Two carriers can start at very similar prices and end up far apart after several rounds of increases. The Arizona rate guide and Medicare.gov both provide starting points, and a licensed agent can pull filed rate histories.

This is often more revealing than today's premium quote.

Household discounts and underwriting

Two more things can move the number on your quote, even for the same plan letter:

• Household discounts. Many insurers reduce premiums (commonly in the range of 5% to 12%) when two adults in the same household both hold a policy with them, or sometimes when one adult simply lives with another Medicare-eligible adult. The size and the eligibility rules differ by company.
• Medical underwriting. During your Medigap Open Enrollment Period — the six months starting the month you are 65 or older and enrolled in Part B — insurers must sell you any Medigap plan they offer, with no health questions. Outside that window, and outside of certain guaranteed-issue situations, insurers in Arizona may ask health questions and can charge more or decline coverage.

Underwriting rules and the specific health questions asked are not standardized. That is why the same person can be quoted different premiums, or approved at one insurer and not another.

How to actually compare

A practical order of operations:

1. Decide which plan letter fits how you use care (the letters, not the insurers, define benefits). 2. Pull the full list of insurers offering that letter in your Tucson ZIP code from Medicare.gov. 3. Check the Arizona rate guide for filed rates and, where available, recent rate change history. 4. Ask each insurer (or an independent agent) about pricing method, household discount rules, and any underwriting that applies to your situation. 5. Call the Arizona SHIP if you want a second set of eyes at no cost.

The table on this page lists the standardized plan letters available in Arizona so you can match what you see on Medicare.gov to what each insurer is offering.