The cost or premium of Medigap policy is decided by the Medicare supplement insurance companies individually. It depends on the premium you pay now and later in future.
It can be categorized according to the cost into three ways-
1) No age related-This policy is irrespective of the citizen’s age. The monthly premium for everybody is same for all those who have Medigap policy.
Example-65 year’s old citizen of Florida buying Medigap policy will have same premium as that of another person 85 years old buying the same Medigap policy.
2) Entry age related-The premium amount depends on the age when the premium is bought. The premium differs from age to age. If the Medigap policy is bought at younger age, the premium is low .This premium amount will not increase as you grow older.
Example-Citizen of Florida having age 65 will have lower premium than citizen of Florida having age 75.
3) Attained age related-The premium amount depends on the current age at which the Medigap policy is bought. It increases as you grow older. The premium amount eventually increases.
Example-If a citizen of Florida buys the policy at age 65 the premium will increase at the age 66 and still more rise at the age 67.
1) Medigap policies purchased before June 1, 2010 remain unchanged. You can keep those policies active by paying regular premiums, no need to quit the Plans.
2) Medigap policies in Florida are ten standardized policies identified by letters A,B,C,D,F,G,K,L,M and N
3) Medigap Policy plans taken on or after June 1, 2010 will benefit the coverage of Plan A coinsurance.
4) Plan K will cover 50% of the cost and 75% by Plan L
5) Plans M and N are new plans offered for sale
6) Plans D and G are different from the previous Plans D and G before June1,2010
7) For those who already bought Plans E,H,I and J can still carry on with these, but from June 1,2010 these plans are not available with insurance companies
8) Medicare supplement insurance companies must offer plan A for sale
9) Medicare supplement insurance companies offering any other Plan must also give either Plan C or Plan F
10) Plan F has a distinguishing high deductible Plan F option
11) All Medigap policies are not available for sale in all states. You will have to find out Medigap policy offered in your state.