Nebraska Department of Insurance
THE NEBRASKA HEALTH INSURANCE INFORMATION, COUNSELING, AND ASSISTANCE (NICA) PROGRAM
JUNE 2000 NICA NEWS
THIS AND THAT
How Age Affects Insurance Premiums
Premiums on your health insurance go up for several reasons. Health care costs keep rising, and an insurance company's cost of doing business may go up. Age is often used to determine the premiums you pay. This can be important for people buying Medicare supplement or long-term-care insurance.Insurance companies use age in three different ways when they set premiums. "Attained Age" rating means a company increases the premium as you get older. The premium can increase each year on the anniversary date of the policy. Some policies may have age increases every 2 years or 5 years instead of every year.
With attained age rating, premiums are often lower during the early years but increase faster as you get older. After 10 or 15 years, the premium can be quite a bit higher than you might pay for another policy. However, if you have health problems at that time, you may have few options for changing.
"Issue Age" rating means your premium will always be based on the age you were when you bought the policy. The premium will not go up in the future simply because you have a birthday.
"Community or No Age" rating means all ages pay the same premium. These premiums are likely to be higher when you are younger, but remain more affordable as you get older.
The 2000 Nebraska Medicare Supplement Premium Comparison Guide is Now Available
The Nebraska Health Insurance Information, Counseling and Assistance Program (NICA) has just released the 2000 Nebraska Medicare Supplement Premium Comparison Guide. The guide compares premiums and other features for Medicare supplement insurance sold in Nebraska. NICA provides the guide as a service of the State of Nebraska Department of Insurance. Consumers can request a free copy by calling NICA at 1-800-234-7119. The information is also on NICA's website at www.nol.org/home/NDOI."The premium comparison guide has been one of the most helpful resources for first-time Medicare supplement shoppers and people looking for a different policy," said Tiffany Geis, Seniors Program Coordinator for NICA. "NICA distributes more than 7,000 copies of the guide each year."
Medicare supplement insurance is standardized into only ten plans. The letters A through J identify the ten plans. Any lettered plan such as Plan C or Plan D pays the same benefits no matter who sells it. Other features such as price and ease of filing claims are important differences when shopping. In addition to premiums, the guide also shows:
- Which companies have automatic claims filing
- How each company uses age to set premiums
- The few companies which sell plans without asking health questions
"We are very pleased we can continue to offer Nebraska seniors specific price information. With this help they can make more informed buying decisions," said Geis.
NICA can answer your questions about Medicare supplement insurance. You can meet with a trained insurance counselor. NICA counselors do not sell insurance or promote specific insurance companies, policies or agents. There is no charge for NICA services.
Contact NICA to request a free copy of NICA consumer guides or to find the NICA counselor nearest you. Call 1-800-234-7119 or visit NICA's website at www.nol.org/home/NDOI.