Difference price for the same Medigap Plan G

[cwradio]

Two questions:

Why are the rates different in Michigan for Medigap Plan G for different insurance companies policies?
Example: (from Medicare.gov)
Michigan Farm Bureau Health Plans is $181 for a 78 year old male for Plan G
Blue Cross Blue Shield of Michigan is $244 for 78 year old male for Plan G
Both plans are ATTAINED AGE PRICING

Will a low price insurance company always have a lower price as the years go on?
Thanks Paul

 

[Lee Vena]

Why do 2 different new car dealerships have different prices for the same car? Prices differ due to a variety of expense issues with the different carriers.

 

[ValeRosso]

While the plans remain the same for each company per letter (G,F,N etc), the only difference will be price. These companies have actuaries who come up with their pricing models with lots of different inputs, and they price accordingly. It’s just competition because they cannot differentiate themselves any differently besides price, with supplement plans.

No, just because Company A is cheaper now, is no indicator that it will be the cheapest 10 years from now. They all have increases as time goes on, and no one knows what the price increase will be next year. It’s best just to choose a reputable company that’s been in the market a long time.

 

[Lee Vena]

While the plans remain the same per letter (G,F,N etc), the only difference will be price. These companies have actuaries who come up with their pricing models with lots of different inputs, and they price accordingly. It’s just competition because they cannot differentiate themselves any differently besides price, with supplement plans.

No, just because Company A is cheaper now, is no indicator that it will be the cheapest 10 years from now. They all have increases as time goes on, and no one knows what the price increase will be next year. It’s best just to choose a reputable company that’s been in the market a long time.

Wouldn't the networks be different too?

 

[somarco]

Wouldn't the networks be different too?

Original Medicare, and hence, Medigap AKA Medicare supplements, do not have networks. Think back to a time before managed care and the 3-letter plans invaded the health care market.

You were allowed to use any provider without worry about having the claim rejected . . .

 

[Lee Vena]

Original Medicare, and hence, Medigap AKA Medicare supplements, do not have networks. Think back to a time before managed care and the 3-letter plans invaded the health care market.

You were allowed to use any provider without worry about having the claim rejected . . .

Thanks. Not ready just yet for Medicare so I am a little behind the curve. My father-in-law had coverage and I seem to remember the options having networks. Oh well. Have a good day my friend.

 

[Chazm]

Thanks. Not ready just yet for Medicare so I am a little behind the curve. My father-in-law had coverage and I seem to remember the options having networks. Oh well. Have a good day my friend.

It sounds like your father in law had a part c medicare advantage plan. Not a Medicare supplement plan.

 

[Lee Vena]

Maybe, he died about 10 years ago and cannot remember.

 

[Newby]

Wouldn't the networks be different too?

Medicare Supplements have no network restrictions. If the doctor or hospital takes one brand of them then they take every brand of them. They are all identical.
Brands that have heavy advertising costs like television ads or if they pay a large amount of money for branding, such as united healthcare does with AARP then they have higher expenses will usually charge more that way.
Some companies just run more efficiently than others, or pay their executives less than others, and that lowers the cost to the consumer.
There is no guarantee at all that the lower price plan today will remain the lower price plan. There have been many examples of plans that come out of the gate with super low pricing, but have larger rate increases through the years.