Medicare Supplement

Comparing Medigap plans in Los Angeles: how the same Plan G can cost different amounts

Medicare Supplement Insurance — better known as Medigap — works differently from Medicare Advantage in one important way: the coverage inside each lettered plan is set by federal rules. A Plan G at one company covers the same medical costs as a Plan G at another. What changes is the price and the company behind it. For Los Angeles residents shopping in Los Angeles County, that means the real comparison work is about how each insurer prices its plans, not what the plans include.

Medicare SupplementLos Angeles, CA

Why the plan letter is the easy part

Medigap plans sold today to people newly eligible for Medicare come in these standardized letters: A, B, D, G, 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.) Federal law locks in what each letter covers. So when you compare a Plan N from one insurer against a Plan N from another, you are comparing the same benefits — deductibles, coinsurance and copay rules are identical across companies.

That is why price, pricing method and company practices become the deciding factors, not the benefit chart.

How Medigap is priced in California

There are three common ways insurers set Medigap premiums. Understanding them helps explain why two quotes for the same letter can look very different.

Attained-age rated. The premium is based on your current age and typically rises as you get older. It often starts lower at 65 and increases over time.

Issue-age rated. The premium is based on your age when you first bought the policy. It does not go up simply because you have a birthday, though it can still change for other reasons like inflation or claims trends across the insurer's book of business.

Community rated. Everyone who buys the same plan from that insurer in the same area pays the same base premium, regardless of age.

No pricing method is automatically "better." A lower starting premium under attained-age rating may rise more over 10 or 20 years than an issue-age or community-rated policy that starts higher. Ask each insurer which method they use in California.

Rate history, discounts and underwriting

Beyond the pricing method, three other things move the actual number on your bill:

Rate history. Insurers can raise Medigap premiums, and how often and by how much varies. The California Department of Insurance publishes a Medigap rate guide that shows recent rate changes by company — useful context that a single quote will not give you.

Household discounts. Some insurers offer a discount if another adult in your household also has a policy with them, or sometimes just lives with you. The size of the discount and who qualifies varies by company.

Medical underwriting. During your Medigap Open Enrollment Period — the six months starting the month you turn 65 and enroll in Part B — insurers must sell you any Medigap plan they offer, without asking about your health. Outside that window, and outside certain guaranteed-issue situations, California insurers can ask health questions and decide whether to accept you. California also has a "birthday rule" that lets existing Medigap policyholders switch to an equal or lesser plan with the same or a different insurer during a 60-day window each year without medical underwriting. Rules can be specific, so confirm the details with HICAP or the insurer.

How to find the insurers selling in Los Angeles

There is no single short list to memorize. The companies offering Medigap in Los Angeles County can change, and premium levels for the same letter can vary widely between them. Here is how to build your own current list:

1. Medicare.gov Medigap policy search. Enter your Los Angeles ZIP code at medicare.gov and choose the Medigap tool. It shows the plan letters available and the insurers offering each in your area. 2. California Department of Insurance rate guide. The state's Medigap rate guide lists companies, sample premiums and recent rate change history. Search "California Department of Insurance Medigap" to find the current edition. 3. HICAP (California's SHIP). The Health Insurance Counseling and Advocacy Program offers free, unbiased counseling to Medicare beneficiaries in Los Angeles County. Counselors can walk you through your options without trying to sell you anything.

Putting it together

Once you have a list of insurers offering the letter you want — say Plan G or Plan N — ask each company the same short set of questions: Which pricing method do you use? What have your rate increases looked like over the last three to five years? Do you offer a household discount, and how do I qualify? If I apply outside my open enrollment window, what health questions will you ask?

The answers are how you tell apart two Plan Gs that look identical on paper.