Medicare Supplement

Before you compare Medigap quotes in Lexington, read this

Lexington, Ky. — If you have shopped Medigap in Lexington, you have probably noticed something confusing: two insurers can sell what looks like the exact same plan, yet the prices and sales pitches look nothing alike. The coverage really is the same. What changes is who is selling it, how they price it, and how they treat you when you apply.

Medicare SupplementLexington, KY

Here is how to compare the same Medigap letter across insurers in Fayette County without getting lost.

The same letter is the same coverage — everywhere

Medigap plans are standardized. That means Plan G from one insurer covers the exact same gaps in Original Medicare as Plan G from any other insurer selling in Kentucky. Plan N is Plan N. Plan K is Plan K. The letters that people newly eligible for Medicare can buy today in Kentucky are A, B, D, G, high-deductible G, K, L, M, and N. (Plans C and F are only available if you were eligible for Medicare before January 1, 2020.)

So when you compare insurers for, say, Plan G in Lexington, you are not comparing benefits. You are comparing price, price stability, customer service, and how easy the company is to work with.

The three ways Kentucky insurers price Medigap

Two Lexington neighbors can hold the same plan letter from the same insurer and pay very different premiums, because insurers set rates in one of three ways:

• Attained-age rated. Your premium is based on your current age and goes up as you get older. It often starts lower at 65 and climbs over time.
• Issue-age rated. Your premium is based on the age you were when you bought the policy. It doesn't rise just because you had a birthday, though it can still change due to inflation.
• Community-rated. Everyone in Kentucky who buys that plan from that insurer pays the same base premium, regardless of age.

None of these methods is automatically better. What matters is knowing which method an insurer uses so you can picture what your premium may look like at 70, 75, and 80 — not just today.

Rate history matters more than the first-year price

An insurer's rate history — how often, and by how much, they've raised premiums on existing policyholders — tells you more than a first-year quote. Two insurers can start at similar prices and drift far apart after a few years of increases.

The Kentucky Department of Insurance publishes Medigap rate information and consumer guides that can help you see the range of rates being charged in the state. Your Kentucky SHIP counselor can also walk through recent rate change patterns with you at no cost.

Household discounts and other price levers

Many insurers selling Medigap in Kentucky offer a household discount — a percentage off if you live with another adult, or with someone else who has a policy with the same company. The size of the discount and the rules for qualifying differ by insurer. Some require a spouse; some accept any adult roommate. Always ask.

Other levers worth asking about:

• Are there any electronic funds transfer or annual-payment discounts?
• Is there a new-enrollee discount that phases out later?
• Does the insurer offer a high-deductible version of Plan G, which trades a lower premium for more upfront cost-sharing?

Underwriting: when insurers can say no

This is the part many Lexington readers wish they'd known sooner. During your Medigap Open Enrollment Period — the one-time six-month window that starts when you're 65 and enrolled in Part B — insurers in Kentucky must sell you any plan they offer, at their standard rate, regardless of your health.

Outside that window, and outside certain federal "guaranteed issue" situations, Kentucky insurers can medically underwrite. That means they can ask health questions and may decline you, charge more, or exclude coverage for a pre-existing condition. Different insurers use different underwriting rules, so a person turned down by one company may still be accepted by another.

If you are past your open enrollment window and thinking about switching, ask before you apply what an insurer's underwriting looks like.

How to find every insurer selling Medigap in Lexington

Because the list of insurers changes, the best move is to pull the current list yourself:

• Medicare.gov Medigap policy search. Enter your Lexington ZIP code to see every insurer offering each plan letter in your area, with sample rates.
• Kentucky Department of Insurance. Their Medigap consumer rate guide lists insurers licensed to sell Medigap in Kentucky and general premium ranges.
• Kentucky SHIP. Free, unbiased counseling from trained volunteers who can walk you through side-by-side comparisons.

The table below lists the standardized Medigap letters available in Kentucky. Once you decide on a letter, you can compare it across every insurer selling it in Fayette County.