Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Great question. I can't really give a number to say is the average cost of a Medicare Supplement Plan F because the price of a policy depends on several factors - your age, your gender, your zip code, and whether you use tobacco products. Each carrier also charges a different rate even though the coverage is exactly the same for Medicare Supplement Plan F (Medicare Supplement plans are standardized).
Typically you can figure the price range to be somewhere around $120-$150 per month for the lowest cost option in a given zip code if you're a male in your 60's - a female in her 60's may be in the range of $80-$120 per month. Someone in their 70s or 80s is probably going to be in the neighborhood of $200+ per month.
An example regarding the zip code aspect, a 65 year old male in the Washington DC area (let's assume zip code 20016) would be $127 per month with United Healthcare - a 65 year old male in Houston, Texas (let's assume zip code 77071) would be $149 per month with United Healthcare.
An example regarding my note about the carriers charging different rates for the same exact Medicare Supplement plan (using the 20016 zip code again) - United Healthcare charges $127 per month for a 65 year old male whereas Mutual of Omaha charges $194 per month for the exact same plan for the 65 year old male (no differences between the two carriers' Medicare Supplement plan benefits). Some areas United Healthcare may be cheaper than Mutual of Omaha in and vice versa in other areas as well as other insurance companies. There are multiple options to choose from and you ideally want to secure the coverage with the lowest possible cost. Why pay more with one company than another for the same exact policy and benefits?
To determine what the costs are you're looking at for yourself specifically, I would need to know your age, gender, zip code, and whether you use any tobacco products - I would then be able to generate the quotes for you accordingly.
I would also consider looking at the rates for a Medicare Supplement plan G. It's exactly the same plan as plan F, but doesn't cover the Medicare Part B deductible which is only $147 in 2015. So if the difference in premiums is $20-$30+ per month, plan G can offer you substantial savings. Think "how much extra are you spending to protect against a risk of $147?" If the difference in premiums is $30 per month between the lowest cost option for plan F and the lowest cost option for plan G, that would mean you would be spending $360 per year to protect against a risk of $147. In that example, plan G would be more cost advantageous to you.
I hope the information is helpful - please feel free to give me a call or send me an e-mail by clicking on the contact me button to discuss your coverage options in further detail and to go over any other questions you may have. Thanks very much.
Average costs are almost immaterial. Location, age, gender and tobacco use are the determining factors. Note that the cheapest rates are not always the best choice. Many insurers purchase sell the products through companies which had been inactive. They sell through these companies for a couple of years, then they close the companies to new business. Rates in the closed companies increase while lower rates in the new companies attract younger, perhaps healthier, insureds.
So also of importance is how long has the company been selling Medicare Supplements, and what are their renewal rates like. In my area, the monthly rate for a 65 yo male with a Plan F with a major company, everyone knows the name, is almost $260/mo It's new company sells the same plan for $140.mo. You can expect the rates with this company to rise dramatically in just a few years. Some insurers increase rates by 10-15%/year, others by 3 or 4%. If you remain healthy, you can switch insurers. If you don't, you are stuck.
Unfortunately there is no simple answer to your question. Medicare supplement policy costs vary based upon a person's age, sex, geographic location, and the particular insurance company whose policy you may be considering just to name the major variables involved. So, assuming you are getting ready to turn age 65 the cost of a Plan F policy could vary by more than $100 per month just depending upon the insurance carriers selling policies in your local area. Trying to compare costs for a Plan F policy between a states, for example the difference between a Plan F in Mississippi and a Plan F in New York could be even more radically different.
Seek out a qualified health insurance agent who can quote multiple Medicare Supplement carriers and have them show you quotes from the carriers available in your local area. You will be surprised at how much of a variance in premium there can be between insurance carriers offering the same coverage.
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Typically you can figure the price range to be somewhere around $120-$150 per month for the lowest cost option in a given zip code if you're a male in your 60's - a female in her 60's may be in the range of $80-$120 per month. Someone in their 70s or 80s is probably going to be in the neighborhood of $200+ per month.
An example regarding the zip code aspect, a 65 year old male in the Washington DC area (let's assume zip code 20016) would be $127 per month with United Healthcare - a 65 year old male in Houston, Texas (let's assume zip code 77071) would be $149 per month with United Healthcare.
An example regarding my note about the carriers charging different rates for the same exact Medicare Supplement plan (using the 20016 zip code again) - United Healthcare charges $127 per month for a 65 year old male whereas Mutual of Omaha charges $194 per month for the exact same plan for the 65 year old male (no differences between the two carriers' Medicare Supplement plan benefits). Some areas United Healthcare may be cheaper than Mutual of Omaha in and vice versa in other areas as well as other insurance companies. There are multiple options to choose from and you ideally want to secure the coverage with the lowest possible cost. Why pay more with one company than another for the same exact policy and benefits?
To determine what the costs are you're looking at for yourself specifically, I would need to know your age, gender, zip code, and whether you use any tobacco products - I would then be able to generate the quotes for you accordingly.
I would also consider looking at the rates for a Medicare Supplement plan G. It's exactly the same plan as plan F, but doesn't cover the Medicare Part B deductible which is only $147 in 2015. So if the difference in premiums is $20-$30+ per month, plan G can offer you substantial savings. Think "how much extra are you spending to protect against a risk of $147?" If the difference in premiums is $30 per month between the lowest cost option for plan F and the lowest cost option for plan G, that would mean you would be spending $360 per year to protect against a risk of $147. In that example, plan G would be more cost advantageous to you.
I hope the information is helpful - please feel free to give me a call or send me an e-mail by clicking on the contact me button to discuss your coverage options in further detail and to go over any other questions you may have. Thanks very much.
So also of importance is how long has the company been selling Medicare Supplements, and what are their renewal rates like. In my area, the monthly rate for a 65 yo male with a Plan F with a major company, everyone knows the name, is almost $260/mo It's new company sells the same plan for $140.mo. You can expect the rates with this company to rise dramatically in just a few years. Some insurers increase rates by 10-15%/year, others by 3 or 4%. If you remain healthy, you can switch insurers. If you don't, you are stuck.
Seek out a qualified health insurance agent who can quote multiple Medicare Supplement carriers and have them show you quotes from the carriers available in your local area. You will be surprised at how much of a variance in premium there can be between insurance carriers offering the same coverage.