Medicare Supplement

How Do Fontana Medigap Insurers Price the Same Letter?

Fontana, Calif. — If two neighbors on the same street both buy a Medigap Plan G, they are buying the exact same coverage. Federal rules make sure of that. So why can the experience — and the price — feel so different from one insurer to the next? In California, and in San Bernardino County where Fontana sits, more than a dozen insurers sell Medigap policies, and the differences between them come down to how they set rates, how long they have been raising them, whether they offer household discounts, and whether they ask health questions when you apply.

The same letter is the same coverage

Medigap plans are standardized. A Plan G from one insurer pays the same share of your Medicare-covered costs as a Plan G from any other insurer. The same is true for Plans A, B, D, G-HD, K, L, M and N. (Plans C and F are only available to people who became eligible for Medicare before January 1, 2020.)

That means when you compare insurers for the same letter, you are not comparing benefits. You are comparing the company behind the policy: how it prices, how stable those prices have been, and how easy it is to qualify.

Who sells Medigap in California

The insurers offering Medigap in California are listed in the table below, along with the plan letters each one sells. You will see familiar names such as AARP - UnitedHealthcare Insurance Company, Anthem BlueCross - California, Blue Shield of California Life & Health Insurance Company, Mutual of Omaha (United World Life Insurance Company) and State Farm Mutual Automobile Insurance Company, along with others such as AFLAC, American Retirement Life Insurance Company (CIGNA), Bankers Life, Continental Life Insurance Company of Brentwood, Tennessee (Aetna), Everence Association Inc., Humana (Humana Insurance Company), Insurance Company of North America, Lumos Insurance, United American Insurance Company and USAA Life Insurance Company.

Not every insurer sells every letter. Some, for example, offer only A, F, G and N. Others carry the high-deductible versions (G-HD or F-HD) and the cost-sharing plans (K and L). Use the table to see which insurers offer the letter you are considering.

Three ways insurers price the same plan

California allows insurers to use different pricing methods. The method matters because it shapes what your premium will look like at 65 — and at 75.

• Attained-age rated. The premium is based on your current age and generally rises as you get older. It often starts lower and climbs over time.
• Issue-age rated. The premium is based on the age you were when you first bought the policy. It does not go up just because you have a birthday, though it can still rise due to inflation and claims.
• Community-rated (no-age-rated). Everyone in the same area pays the same premium, regardless of age.

All three methods can also increase over time because of medical inflation and the insurer's overall claims. Two insurers using different methods can look similar at age 65 and very different at age 80.

Rate history, household discounts and underwriting

When you compare insurers for the same letter, three other things are worth checking:

Rate history. How often has this insurer raised its Medigap premiums, and by how much? The California Department of Insurance publishes a Medicare Supplement rate guide that shows recent rate changes by company. A carrier with a lower starting rate but a long pattern of increases may not stay lower for long.

Household discounts. Some insurers offer a discount when more than one adult in the same household has a policy with them, or sometimes even when a second adult simply lives in the home. The size and rules of the discount vary by insurer, so ask directly.

Medical underwriting. During your six-month Medigap open enrollment period — which starts the month you are 65 or older and enrolled in Part B — insurers must sell you any Medigap policy they offer, at their best available rate, regardless of health. Outside that window, and outside a few limited "guaranteed issue" situations, insurers in California can ask health questions and can charge more or decline to cover you. California also has the "birthday rule," which lets existing Medigap policyholders switch to an equal or lesser plan with any insurer during a 60-day window around their birthday without new underwriting.

How to compare, step by step

1. Decide which plan letter fits your budget and how you use care. This is a benefits decision, not an insurer decision. 2. Pull the list of insurers that sell that letter in California using the Medicare.gov Medigap policy search (enter a Fontana ZIP code). 3. Check the California Department of Insurance rate guide for the pricing method and recent rate history of each insurer. 4. Call two or three insurers or a licensed agent for quotes. Ask about household discounts and whether you are inside a guaranteed-issue window. 5. If you already have a policy, mark your birthday on the calendar — the California birthday rule may give you an easier way to switch.