Medicare Supplement

How to compare the same Medigap plan letter across insurers in Chicago

CHICAGO — If you live in Chicago and you're shopping a Medigap policy, one of the most useful things to know up front is this: a Plan G is a Plan G, no matter who sells it. The letter tells you the coverage. What changes from one insurer to the next is the price, how that price is set, and a few smaller details like discounts and how the company decides whether to accept you.

That means comparing Medigap in Illinois is less about hunting for the "best" plan and more about lining up the same letter across insurers and looking at how each one prices it — today and over time.

Start with the letter, not the company

Medigap plans are standardized by federal law. In Illinois, people who are newly eligible for Medicare today can choose from Plans A, B, D, G, high-deductible G, K, L, M and N. (Plans C and F are still available, but only to people who became eligible for Medicare before January 1, 2020.)

Because the letter is standardized, Plan N from one insurer pays the same claims as Plan N from another. So the first step is picking the letter that fits how you use care — how much cost-sharing you're comfortable with, whether you travel, and whether you want a lower premium in exchange for a deductible. Once you've settled on a letter, then you compare insurers.

The three ways insurers price Medigap

This is the piece most Chicago shoppers miss. Two insurers can sell the same Plan G and price it in completely different ways over time. Illinois allows all three of the standard methods:

Attained-age rating. The premium is based on your current age and goes up as you get older. It often looks lowest at 65 and climbs steadily from there.

Issue-age rating. The premium is based on the age you were when you first bought the policy. It doesn't rise just because you age, though it can still go up for inflation and other reasons.

Community rating (also called no-age-rated). Everyone in the same area pays the same premium regardless of age. Younger buyers pay more than they would under attained-age; older buyers usually pay less.

None of these is automatically better. What matters is how the price behaves five, ten and fifteen years down the road — which is why rate history matters.

Ask about rate history, not just today's premium

A low starting premium doesn't tell you much on its own. Ask each insurer — or check the Illinois Department of Insurance's Medigap rate guide — how often they've raised rates on that plan letter in Illinois over the last several years, and by how much. A carrier that quotes a friendly number today but has raised rates sharply every year is a different proposition than one whose rates have been steadier.

The state rate guide is a good neutral source for this kind of history, because it isn't tied to any one company.

Household discounts and other small differences

Even though the coverage is standardized, insurers can offer small extras that affect price. The most common in Illinois is a household discount — a percentage off the premium if your spouse or another eligible adult in your home also has a Medigap policy with the same company, or sometimes just lives with you. The size of the discount and who qualifies varies by insurer, so it's worth asking directly.

Some insurers also offer discounts for paying annually or setting up automatic bank payments. These aren't game-changers, but when you're comparing two otherwise similar options, they can tip the balance.

Underwriting: when the insurer gets to ask questions

If you apply during your six-month Medigap Open Enrollment Period — which starts the month you're 65 or older AND enrolled in Part B — insurers in Illinois must sell you any plan they offer, at their standard rate, regardless of your health. This is guaranteed issue.

Outside that window, and outside a handful of special guaranteed-issue situations, insurers can use medical underwriting. That means they can ask about your health, decline your application, or charge more based on your conditions. Each insurer has its own underwriting standards, so someone turned down by one company might be accepted by another. This is a big reason people are told not to let their initial open enrollment window pass without a careful look.

How to find every insurer selling Medigap in your ZIP

Illinois doesn't publish a single official carrier list here, so use the tools that are kept current:

• Medicare.gov Medigap policy search. Enter your Chicago ZIP code and it will show every insurer selling Medigap in your area, by plan letter.
• Illinois Department of Insurance Medigap rate guide. Published periodically, it lays out companies and their filed rates side by side.
• Illinois SHIP (Senior Health Insurance Program). Free, unbiased counseling by phone or in person. Counselors don't sell anything.

Once you've got your list, pick your plan letter, then compare the same letter across insurers using the pricing method, rate history, discounts and underwriting rules.