How Much Are Texas Medigap Insurance Rates?

Seniors using digital tablet to see what Medigap insurance rates are in their area of Texas.

Texas Medigap Insurance Rate – Some seniors may be wondering how much Texas Medigap insurance rates are. Fortunately, there is some information available that can help give a general idea of the cost. Keep in mind that rates vary depending on the company and plan you choose, so it’s best to get quotes specific to your needs. Still, this overview should provide a good starting point for those looking for information on Medigap rates in Texas.

Pricing Methods for Medigap Plans

There are three pricing methods that private insurance companies use to determine their rates.

Attained-Age Rated

This is the most common pricing method used by insurance companies today. Your initial premium is set based on your current age. As you get older, your premium increases based on your “attained age.” The reason carriers use this method most frequently is because it is expected that as we age, our healthcare needs (and thereby the cost) will increase.

Age is not the only reason your premiums might go up, even under this method. Rates can also increase due to inflation and overall increases in healthcare costs across the country.

Issue-Age Rated

The name says it all here. Using this method, the insurance company sets your premium based on the age you are when you enroll in the plan. The younger you are when you enroll, the lower your premium will be. From then on, your premium will not increase due to age.

However, don’t be fooled into thinking that your premium will always stay the same. Like with the attained-age method, inflation and the cost of healthcare can cause your premiums to rise.

Community Rated

The community rating method is not seen frequently, but there are some companies that still use it. In this method, every person within a geographical area pays the same premium amount. Age is not a factor. Again, other factors like inflation and healthcare costs can cause your premiums to increase.

Personal Factors

Outside of these methods, personal information will also be used to calculate your premium. (Except in the case of community-rated plans, which are the same for all enrollees.)

The biggest personal factors that will impact your Medigap premiums are gender, age, and tobacco use. Generally speaking, males pay more than females, older folks pay more than younger ones, and tobacco users pay more than those who don’t smoke or chew tobacco.

Where you live also plays a role in your monthly premiums. States that have higher costs of living typically see higher premiums.

Happy senior woman using mobile phone as she discusses Medigap insurance rates with friends.
This is the most common pricing method used by insurance companies today. Your initial premium is set based on your current age.

Rates for the Best Medigap Plans in Texas

We won’t be able to tell you your exact premium here, but we do want to give you an idea of what you could expect the most popular Medigap plans in Texas to cost.

Medigap Plan F

Let’s start with Plan F, which has been the most popular plan over the last couple of decades. (Until recently, that is.) You must have turned 65 before January of 2020 to be eligible for Plan F or its high-deductible counterpart. If you meet that eligibility requirement, you can expect Plan F premiums in Texas to start at around $140 per month. The high-deductible Plan F is quite a bit lower, starting around $40 per month. However, you’ll need to meet the $2,490 deductible before coverage begins.

If the $140 premium sounds high, you should understand that you’ll have virtually no out-of-pocket expenses if you enroll in Plan F. As long as your treatment was approved by Medicare, Plan F will pick up any costs that remain after Original Medicare has paid.

Medigap Plan G

If you aren’t eligible for Plan F, the plan that offers the second-most coverage is Plan G. Individuals in Texas should expect Plan G premiums to start at around $105. Want the high-deductible Plan G? Your monthly premium will be about $35. The same $2,490 deductible applies.

Your out-of-pocket costs with Plan G are also minimal. Again, as long as Medicare approves the service, Plan G will pick up everything except the Part B deductible, which is $233 this year.

Medigap Plan N

The last of the three most popular Medicare supplement plans in Texas is Plan N. The cost for Plan N starts at around $80 a month. (There is no high-deductible Plan N.)

While the lower premium is nice, you will have a few more expenses if you enroll in Plan N. You’ll be responsible for the Medicare Part B deductible, as well as the Part B excess charges. While those charges are rare, you should make sure your provider accepts Medicare assignment to avoid them. (Excess charges are amounts above and beyond what Medicare has approved. A provider who doesn’t accept Medicare assignment can charge an additional 15% above the Medicare fee.)

You’ll so have copayments for office visits. You’ll pay up to $20 each time you visit your doctor and $50 if you go to an emergency room. For some, especially those who don’t go to the doctor often, these copays are well worth the lower premiums of Plan N.

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