Medicare Supplement

Shopping Medigap in Grand Rapids: how the same plan letter can look different across insurers

If you live in Grand Rapids and you are shopping a Medicare Supplement policy, here is the part that surprises most people: a Plan G from one insurer covers exactly the same things as a Plan G from any other insurer. The federal government standardized these letters years ago. What changes from company to company is not the coverage — it is the price, how that price is set, how it moves over time, and how easy it is to switch in later.

Medicare SupplementGrand Rapids, MI

Grand Rapids is in Kent County, and the same list of Michigan-licensed Medigap insurers is available to you as to any other resident of the state. That gives you room to compare — if you know what to compare on.

Same letter, same coverage — but not the same policy

Medigap plans sold to people newly eligible today come in these standardized letters: A, B, D, G, high-deductible G, K, L, M and N. (Plans C and F remain available only to people who were eligible for Medicare before January 1, 2020.)

Because the letters are standardized, a Plan N is a Plan N is a Plan N. What insurers compete on is price and service — not the benefits inside the letter. That is the single most useful thing to remember when you look at a list of carriers.

The table below lists every insurer currently selling Medigap in Michigan and which plan letters they offer. It is long. Names range from AARP – UnitedHealthcare Insurance Company and Blue Cross Blue Shield of Michigan to smaller players like Everence Association Inc., Michigan Farm Bureau Health Plans and WoodmenLife. Two Grand Rapids–area names to note are Priority Health Insurance Company and Health Alliance Plan of Michigan, both Michigan-based carriers offering several standardized letters.

The three ways insurers price the same plan

When you request quotes for, say, Plan G from three different insurers, the numbers can look very different. That is usually because the insurers use different pricing methods:

• Community-rated (no-age-rated): Everyone in the state pays the same base premium regardless of age. Premiums can still go up over time due to inflation and claims, but not because you had another birthday.
• Issue-age-rated: Your premium is based on the age you were when you bought the policy. Someone who buys at 65 keeps that starting basis; someone buying at 72 starts higher. Premiums can still rise, but not because of your current age.
• Attained-age-rated: Your premium is based on your current age and typically increases as you get older, on top of any general rate hikes.

None of these methods is automatically "better." An attained-age policy may start out lower and cross above an issue-age policy years later. This is why looking only at today's price can mislead you.

Rate history: the piece most shoppers skip

Every Medigap insurer in Michigan has to file rate changes with the state. That means you can look up how often — and by how much — a given carrier has raised premiums on its Michigan block of business.

The Michigan Department of Insurance and Financial Services (DIFS) publishes a Medicare supplement rate guide and premium comparison. Reading it takes a few minutes, but a carrier with modest, predictable increases over several years is telling you something different from one with big or frequent jumps. Ask any agent you speak with to show you the last three to five years of rate changes for the exact plan letter in question.

Household discounts and underwriting rules

Two more things vary quietly from insurer to insurer:

• Household or spousal discounts. Some carriers give a small ongoing discount if another adult in the home also has a policy with them — or in some cases, if you simply live with another adult. The size of the discount and who qualifies is a company decision, not a federal rule.
• Medical underwriting. During your six-month Medigap Open Enrollment Period — which starts the month your Part B begins at age 65 or older — insurers must sell you any plan they offer at their best available rate, regardless of health. Outside that window, and outside a few "guaranteed issue" situations, insurers in Michigan can ask health questions and decline you or charge more. Underwriting standards differ between carriers, so a "no" from one company does not mean every company would say no.

How to actually compare, step by step

1. Start at Medicare.gov and use the Medigap policy search. Enter your Grand Rapids ZIP code to see every insurer licensed to sell to you. 2. Pull the Michigan DIFS Medicare supplement rate guide for current premiums and recent rate history. 3. Pick one plan letter you want to shop — most people compare on Plan G, high-deductible G, or Plan N — and get quotes from several insurers for that same letter. 4. Ask each one two questions: How is this policy rated (community, issue-age, or attained-age)? and What have your rate increases in Michigan looked like the last few years? 5. Ask about household discounts and, if you are outside your Open Enrollment window, ask what underwriting will look like.

If you want unbiased help, the Michigan Medicare/Medicaid Assistance Program (MMAP) is the state's SHIP. Counselors are trained volunteers, do not sell insurance, and can walk you through your options for free.