What Are Some Options In Paying My Medigap Premiums?
Options for paying Medigap premiums confuse a person who enrolls in a program for the first time. Unlike Medicare Part B or D the deductions do not always automatically come out of a person’s paycheck. Companies also make matters worse, but the options for paying a person’s premiums are not that much different from paying the premiums from any other insurance plan.
The payment plans break down into level premiums, Attained, Age, and Issued Age. The person still writes out a check or pays by cash or credit card depending on his or her preference, but the amount the person gets charged is different.
How Medigap Premiums Option Works
Level premiums charge everyone within a given plan the same rate. The amount a recipient pays goes up at the same time for everyone. This type of plan results in fewer surprises to individual recipients.
A person with an issued age payment plan pays his premiums on the basis of when his plan was issued. Naturally, the earlier it was issued the lower his premiums will be. This Medigap payment plan option does not go up just because the number of years he has under his belt does.
Attained Age Medigap Premiums Option
Attained age plans have a person’s premium go up once he reaches a set age plateau. The premiums start out lower for people on the plan but rise once the policyholder reaches set plateaus. These plateaus are normally five years apart.
A policyholder who wants to save money initially can choose this option, but he might be better off with a level premium or an issued age policy in the long wrong. Asking the insurance agent what the rates are for other people with this type of coverage can help a person plan for the future rate hikes.
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