Medicare Supplement

Same Plan G, Different Premiums: What Changes in Tacoma

Tacoma, Wash. — If you have shopped for a Medicare Supplement (Medigap) policy in Tacoma, you have probably noticed something strange: the same plan letter — say, Plan G — is sold by more than a dozen insurers, and each one quotes a different premium. The coverage is identical. So what actually differs?

Medicare SupplementTacoma, WA

Tacoma is in Pierce County, and Medigap in Washington is regulated at the state level. That means every insurer selling a lettered plan here has to offer the exact same standardized benefits. What changes from company to company is how they price it, how often those prices go up, whether they offer household discounts, and how they handle applications outside of your first enrollment window.

The plan letter is the coverage — the insurer sets the price

Medigap plans are standardized by the federal government. A Plan G from one carrier pays the same share of your Medicare-covered costs as a Plan G from any other carrier. There is no "better" version of a letter. If you are newly eligible for Medicare today, the letters you can buy are A, B, D, G, G-HD, K, L, M and N. Plans C and F are only available to people who became eligible for Medicare before January 1, 2020.

So when you see the same letter across multiple insurers, you are comparing price and service — not benefits.

Who sells Medigap in Washington

The table below lists every insurer currently selling Medigap in Washington, along with the plan letters each one offers. The lineup includes national names like AARP - UnitedHealthcare Insurance Company, Mutual of Omaha (United World Life Insurance Company), Humana (HumanaDental Insurance Company) and USAA Life Insurance Company, as well as regional carriers like Premera Blue Cross and Regence BlueShield. Others in the mix include Bankers Life (Underwritten by Washington National Insurance Company), GPM Health and Life Insurance Company, Insurance Company of North America, Medco Containment Life Insurance Company, Medico Insurance Company, State Farm Mutual Automobile Insurance Company and United American Insurance Company.

Not every insurer sells every letter. If you have your heart set on a specific plan letter, the table below will show you which companies actually offer it in Washington.

The three pricing methods (and why Washington is different)

Medigap insurers use one of three ways to set premiums:

• Community-rated (no-age-rated): everyone in the state pays the same base premium, regardless of age.
• Issue-age-rated: your premium is based on the age you were when you bought the policy and does not go up simply because you get older.
• Attained-age-rated: your premium is based on your current age and rises as you age.

Washington is one of a small number of states where most Medigap policies are sold on a community-rated basis. That is important, because in states that allow attained-age pricing, a policy that looks cheap at 65 can climb steeply by 75. Ask each insurer — or check the state rate guide — to confirm the pricing method before you compare quotes.

Rate history matters more than today's quote

Two policies with similar premiums today can look very different five years from now if one insurer raises rates aggressively. The Washington Office of the Insurance Commissioner publishes a Medigap rate comparison guide that shows recent premium increases by carrier. Reviewing three to five years of rate history is one of the more useful things you can do before signing an application.

Household discounts and underwriting

Several insurers in Washington offer a household discount — often around 5% to 12% — if you live with another adult, or specifically with another policyholder from the same company. The rules vary: some require a spouse, some accept any adult roommate, and some only apply the discount at issue. It is worth asking directly.

Underwriting is the other quiet difference. During your Medigap Open Enrollment Period — the six months that begin the month your Part B starts, at age 65 or later — you have a guaranteed right to buy any Medigap policy sold in Washington, and insurers cannot charge you more or turn you down for health reasons. Outside that window, most insurers can require medical underwriting, and each company has its own list of conditions that could lead to a higher rate or a denial. If you are shopping after your initial window, ask each insurer what their underwriting looks like before you apply.

How to actually compare across insurers

A practical checklist:

1. Decide on your plan letter first (A, G, N, and so on). The letter is the coverage. 2. Pull the list of insurers offering that letter from the table below. 3. Run the same letter through the Medicare.gov Medigap policy search for your Tacoma ZIP code to see current premiums. 4. Cross-check with the Washington Office of the Insurance Commissioner's Medigap rate guide for pricing method and recent rate history. 5. Ask each insurer about household discounts and — if you are past your open enrollment window — underwriting. 6. Call Washington's SHIBA program (Statewide Health Insurance Benefits Advisors), the state's SHIP, for a free one-on-one review.