Medicare Supplement

Three ways insurers price the same Medigap letter

Medigap in Newport News works differently than a lot of shoppers expect. If two insurers both sell Plan G in Virginia, the coverage under that letter is identical — the doctor visits, the hospital coinsurance, the Part B excess charges. What changes is who is behind the policy, how they set the price, how often they raise it, whether they give a household discount, and how they treat your health history if you apply outside a protected window. Those four things, not the letter itself, are what separate one Newport News offer from another.

Why the plan letter is the same everywhere

Medigap plans are standardized by the federal government. That means Plan G from one company pays the same benefits as Plan G from another. Same deductibles, same coinsurance, same foreign travel coverage. Congress set it up this way so shoppers could compare on price and service instead of trying to decode benefit charts.

People newly eligible for Medicare today can choose from Plans A, B, D, G, G-HD, K, L, M and N. Plans C and F are only available if you were eligible for Medicare before January 1, 2020.

The table below lists every insurer selling Medigap in Virginia and the letters each one offers. Names like AARP - UnitedHealthcare Insurance Company, Anthem Blue Cross and Blue Shield - Virginia, Mutual of Omaha, Humana, State Farm Mutual Automobile Insurance Company and USAA Life Insurance Company will look familiar; others, like Bankers Fidelity Assurance Company, Everence Association Inc., or WoodmenLife, may not. All of them sell the same standardized letters.

The three ways an insurer can price the same letter

This is the piece most Newport News shoppers miss. Virginia allows three pricing methods, and each insurer picks one:

• Community-rated (no-age-rated): Everyone with the same plan 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 a birthday.
• Issue-age-rated: Your premium is based on the age you were when you bought the policy. Buying younger usually means a lower starting point that stays anchored to that age.
• Attained-age-rated: Your premium is based on your current age and goes up as you get older, on top of any general rate increases.

Two insurers can sell an identical Plan G and price it in two different ways. Over 10 or 20 years, that choice matters more than the starting number on the quote sheet.

Rate history: the number no quote will show you

A premium quote is a snapshot. What you really want to know is how often that insurer has raised rates on Virginia policyholders in the past — and by how much. Some carriers keep increases modest and predictable; others jump more sharply.

The Virginia State Corporation Commission's Bureau of Insurance publishes rate filings, and Virginia Insurance Counseling and Assistance Program (VICAP), the state's SHIP, can walk you through recent rate history for the carriers on your short list. Ask specifically about the last three to five years of increases for the plan letter you're considering.

Household discounts and how to ask about them

Several Medigap insurers in Virginia offer a household discount if you live with another adult (sometimes a spouse, sometimes any adult over a certain age), and the discount can range from a few percent to double digits. It is not automatic — you usually have to apply for it, and the rules vary by carrier.

When you call, ask three plain questions:

1. Do you offer a household discount in Virginia? 2. What's the percentage, and does it apply for the life of the policy? 3. What are the eligibility rules — married only, or any adult in the home?

Underwriting: the difference between "guaranteed issue" and "answer these questions"

Timing is everything with Medigap. During your six-month Medigap Open Enrollment Period — which starts the month you're 65 or older and enrolled in Part B — insurers in Virginia must sell you any plan they offer at their standard rate, no health questions. That's guaranteed issue.

Outside that window (and outside a handful of other protected situations), most insurers can medically underwrite you. That means they can ask about your health, and they can decline you or charge more. Underwriting rules — which conditions are automatic declines, which are okay, how far back they look — differ from carrier to carrier. If you're past your open enrollment window, this is often the single biggest factor in which insurer will actually take you.

How to compare in Newport News, step by step

Newport News is in Newport News City, and Medigap availability is set at the state level in Virginia, so every insurer listed above is available to eligible residents here.

Here's a practical order to work through:

1. Go to Medicare.gov's Medigap policy search and enter your ZIP code. This pulls the full list of insurers and lets you filter by plan letter. 2. Pick the plan letter that fits your budget and risk tolerance (talk to VICAP if you're unsure between, say, G and N). 3. For each insurer offering that letter, ask: pricing method, household discount, and Virginia rate history. 4. If you're outside your open enrollment window, ask about underwriting before you apply — a declined application can affect future applications. 5. Compare quotes for the same letter, and factor in what you learned about rate history and pricing method, not just today's number.