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Turning 65 Seniors Increasingly Favor Lower Cost Medigap Options
"Some 11,000 Americans turn 65 every day and become eligible for Medicare," explains Jesse Slome, AAMSI's director. "Medicare Supplement, or Medigap, remains a highly popular choice but there appears to be greater interest in lower cost options."
During the first six months of 2022, some 38 percent opted for Medigap Plan N. Just over half (51%) selected Plan G coverage. Nearly six percent enrolled in a High Deductible Plan G (HDG) plan.
The Association's report examining 2021 new enrollees reported that 36.5 percent Plan N, 55 percent selected Plan G, and 6.7 percent High Deductible Plan G.
"I expect the trend to lower cost options will continue for two reasons," Slome predicts. "First, consumers are being bombarded with Medicare-focused television ads touting free coverage and benefits making it harder to sell coverage that costs. Second, saving money is always a winner with many seniors who live on fixed or limited budgets."
A Chicago-area female turning 65 can expect to pay $117 monthly for Plan G from a popular Medigap insurer. The same insurer offers Plan N for $86-per-month, amounting to a $372 annual savings. A Medigap HDG plan can be obtained for as little as $32 to $45-per-month. In Chicago, men can expect to pay more for similar coverage. Around $132-per-month for Plan G, $97 for Plan N and between $37 and $48 for HDG.
Plan G covers 100% of all Medicare-covered expenses once your Medicare Part B deductible has been met for the year. First introduced in 2010 as a way to offer lower cost options, Plan N has a few additional out-of-pocket expenses that policyholders will have to pay. These can include a nominal copay for doctor or emergency room visits. Plan N can also have one facing Excess Charges.
The 2022 survey of over 3,000 new-to-Medicare enrollees selecting Medigap plan coverage was conducted for AAMSI by MedicareFAQ.com a leading national provider of Medicare insurance plans for consumers nationwide.
The American Association for Medicare Supplement Insurance advocates for the importance of insurance protection. To access the latest Medicare insurance statistics, go to www.medicaresupp.org/