Medicare Supplement

Shopping Medigap in McKinney: how the same Plan G can look different insurer to insurer

If you live in McKinney and you're weighing a Medicare Supplement policy, here's the single most useful thing to know before you start calling companies: a Plan G from one insurer covers the exact same Medicare-approved costs as a Plan G from any other insurer. Same for Plan N, Plan K, Plan L and every other lettered plan. The federal government standardized the benefits decades ago. What actually differs — and what makes shopping worth your time — is how each company sets its price, raises it over the years, discounts it for households and decides whether to accept you if you're past your one-shot open enrollment window.

Who sells Medigap to McKinney residents

McKinney is in Collin County, but Medigap is regulated at the state level, so any insurer licensed to sell Medicare Supplement policies in Texas can sell to you here. The table below lists every insurer currently selling Medigap in Texas, along with the plan letters each one offers. A few names most McKinney shoppers will recognize include AARP - UnitedHealthcare Insurance Company, Aetna Health Insurance Company, BlueCross BlueShield of Texas, Humana (Emphesys Insurance Company), Mutual of Omaha (Mutual of Omaha Insurance Company), State Farm Mutual Automobile Insurance Company, Texas Farm Bureau Health Plans and USAA Life Insurance Company. Smaller and regional carriers on the list — for example Bankers Life, Lumos Insurance, Medico Life and Health Insurance Company and Physicians Select Insurance Company — sometimes price aggressively in certain markets, which is why comparing several quotes is worth the effort.

Not every company sells every plan letter. If you've decided you want Plan G, for instance, you only need to compare the insurers that offer Plan G. If you're eligible for Plan C or Plan F (available only if you became eligible for Medicare before January 1, 2020), your list narrows further.

The three pricing methods, and why they matter

Two people the same age in McKinney can be quoted very different prices for the same plan letter because Texas insurers are allowed to use three different pricing methods:

• Community-rated (no-age-rated): Everyone in the state pays roughly the same base rate, regardless of age. Premiums still go up over time with inflation and claims, but not because you had a birthday.
• Issue-age-rated: Your premium is set based on how old you were when you first bought the policy. A younger start age locks in a lower starting rate. Premiums still increase over time, but not because you're aging.
• Attained-age-rated: Your premium is based on your current age and typically rises every year or two as you get older, on top of any general rate increases.

None of these is automatically "better." Attained-age policies often start out cheapest and can become the most expensive later. Community-rated and issue-age policies can look pricier at 65 and more competitive at 80. When you request quotes, ask each company which method it uses so you're comparing apples to apples.

Rate history: the number nobody puts on the brochure

Every Medigap insurer files rate increases with the Texas Department of Insurance. A company's history of increases is a better predictor of what you'll pay in five years than today's premium. Ask agents — or the insurer directly — for the last several years of rate actions on the specific plan letter you're considering in Texas. The Texas Department of Insurance publishes rate guides and consumer information that can help you check.

Household and other discounts

Many insurers offer a "household" or "spousal" discount, typically 5% to 15%, if two people in the same home hold policies with the same company. Some extend the discount if you simply live with another adult, even a roommate or sibling. Others require both people to actually enroll. A few companies offer additional discounts for paying annually, using electronic funds transfer or being a non-tobacco user. These discounts vary by insurer and are not standardized, so it's a fair question to ask up front.

Underwriting: when insurers can say no

In Texas, you have a guaranteed right to buy any Medigap policy sold in the state during your six-month Medigap Open Enrollment Period, which starts the month you're 65 or older and enrolled in Part B. During that window, insurers cannot turn you down or charge you more because of your health.

Outside that window — and outside a handful of specific guaranteed-issue situations, such as losing employer coverage — most Texas insurers can require medical underwriting. That means answering health questions, and possibly being declined or charged a higher rate. Underwriting rules differ from company to company: one insurer may decline you for a condition another will accept. If you're switching plans or shopping later in retirement, ask each carrier what its underwriting looks like before you apply.

How to compare the same plan letter across insurers

A workable process for a McKinney shopper:

1. Decide which plan letter fits your budget and how you use care. The letters are standardized, so this decision is separate from picking a company. 2. Use the Medigap policy search at medicare.gov to pull the list of insurers selling that letter in ZIP codes around McKinney. 3. Request quotes from at least three to five insurers on that same letter. 4. For each quote, ask: What pricing method do you use? What have your rate increases looked like in Texas over the last five years? Do you offer a household discount? What underwriting will apply to me? 5. Cross-check with the Texas Department of Insurance's rate guide and, if you want a neutral second opinion, call your local State Health Insurance Assistance Program (SHIP).