Medicare Supplement

Same Medigap Plan G in Aurora, many insurers: what actually changes from one to the next

If you live in Aurora and you are shopping a Medigap policy, here is the part that trips up almost everyone: a Plan G is a Plan G is a Plan G. The letter tells you the coverage. What changes from one insurer to the next is how they price it, whether they offer household discounts, and whether they will ask health questions before saying yes. Aurora is in Kane County, and Illinois shoppers can choose from a long list of insurers selling the same standardized letters — so the useful skill is knowing what to compare.

The letter is the coverage — full stop

Medigap plans are standardized. That means Plan G from one insurer pays the same Medicare-approved gaps as Plan G from any other insurer. Plan N is Plan N. Plan K is Plan K. The federal government wrote the benefit chart, and every insurer selling that letter has to follow it.

So when a mailer or an agent tells you their Plan G is "better," what they can actually differ on is price, service, and the rules around getting in. The coverage itself is fixed.

For people newly eligible for Medicare today, the letters available are A, B, D, G, G-HD, K, L, M and N. Plans C and F are only for people who were eligible for Medicare before January 1, 2020.

Who sells Medigap in Illinois

The table on this page lists every insurer approved to sell Medigap in Illinois and which letters each one offers. Familiar names on that list include Aetna Health Insurance Company, AFLAC, BlueCross BlueShield of Illinois, Humana (Emphesys Insurance Company), Mutual of Omaha (Omaha Insurance Company), State Farm Mutual Automobile Insurance Company and AARP - UnitedHealthcare Insurance Company, along with many smaller carriers.

A few things to notice as you scan the list:

• Not every insurer sells every letter. Some carriers only offer A, F, G and N. A few sell high-deductible G (G-HD), which works differently than standard G.
• Some carriers appear under a parent name and an underwriter name (for example, Bankers Life is underwritten by Washington National Insurance Company). That is normal.
• New Era Life and United American are among the few still offering older letters like D or M.

The three pricing methods — and why rate history matters

Two people can buy the same Plan G on the same day from two different insurers and see very different premiums a decade later. That is because insurers use different pricing methods:

• Attained-age rated. The premium is based on your current age and goes up as you get older. Often the lowest starting price, but climbs the most over time.
• Issue-age rated. The premium is based on your age when you bought the policy and does not increase just because you had a birthday.
• Community-rated. Everyone in the state pays roughly the same premium for that letter, regardless of age.

All three methods still get rate increases for inflation and claims. That is why rate history matters more than today's quoted number. Ask each insurer, or check the Illinois Department of Insurance rate guide, for how often that carrier has raised rates on the same letter over the last five to ten years.

Household discounts and other quiet differences

Some insurers offer a household or spousal discount — often around 5% to 12% — if another adult in the home is on the policy or on Medicare. Not every carrier offers it, the size varies, and the rules (do you both have to enroll? does a roommate count?) differ. Ask directly.

Other differences worth asking about:

• Whether the insurer uses a broker network or sells direct.
• How they handle a claim that Medicare has already processed (most do this automatically through "crossover," but confirm).
• Customer service hours and whether you can manage the policy online.

Underwriting: the rule that changes everything

This is the piece most people underestimate. When you first sign up for Medicare Part B at 65 (or later, if you delayed because you were still working), you get a six-month Medigap Open Enrollment Period. During that window, any insurer selling in Illinois has to sell you any letter they offer, at their standard rate, no health questions.

Outside that window — and outside a few specific guaranteed-issue situations — insurers in Illinois can use medical underwriting. That means they can ask about your health, and they can decline you or charge more based on the answers. Different carriers use different underwriting standards, so someone turned down by one insurer may be accepted by another.

If you are thinking about switching Medigap carriers to chase a better rate, this is the catch: you may have to pass underwriting to move.

How to actually compare, step by step

1. Go to Medicare.gov and use the Medigap policy search. Enter your Aurora ZIP code. You will see every insurer selling each letter in Kane County. 2. Pull the Illinois Department of Insurance Medicare supplement rate guide. It shows sample premiums and rate history side by side. 3. Pick your letter first (G and N are the most commonly chosen by new enrollees). Then compare insurers offering only that letter. 4. For each insurer, ask: pricing method, rate increase history, household discount, and underwriting rules if you are past your open enrollment window. 5. Call your local SHIP (Illinois's free State Health Insurance Assistance Program counselors) for an unbiased second look before you sign.