Medicare Supplement Buyers Can Save An Average of $840 Annually Through Comparison Shopping for the Lowest-Cost Option in Their Area, eHealth Analysis Finds
eHealth report examines costs for Medicare Supplement Plans G and N in more than 65 metropolitan areas around the United States
SANTA CLARA, Calif., March 31, 2021 /PRNewswire/ -- In an analysis released today by eHealth, Inc. (NASDAQ: EHTH) (eHealth.com) the company reports that Medicare beneficiaries stand to save an average of $840 per year for Medicare Supplement Plan F or $648 per year for Plan N if they enroll in the lowest-cost option available in their area. eHealth calculated potential savings by comparing the lowest-cost and highest-cost Medicare Supplement plans within each plan type available through eHealth for 65-year-olds in 67 metropolitan areas.
Medicare Supplement plans (also known as Medigap plans) are offered by private insurers and are designed to fill many of the coverage gaps in Original Medicare. They come in a number of plan types but the most popular at eHealth among customers aging in to Medicare are Plan G and Plan N, which account for approximately 87% of all plan selections (among eHealth customers aging into Medicare during the fourth quarter of 2020 and the first quarter of 2021). Plan G is widely seen as the optimal replacement for the formerly most popular Plan F, which is being phased out.
Medicare Supplement plans of the same type (e.g. Plan G) which are offered by different insurers may vary significantly from one another in terms of cost while providing the same basic benefits and levels of coverage. As such, there is often little reason for Medicare beneficiaries not to select the lowest-priced option available to them within the same plan type.
Among Medicare Supplement Plan G plans, eHealth found:
- $840 per year ($70 per month) is the average potential savings identified for beneficiaries who enroll in the lowest-cost Plan G option rather than the highest-cost Plan G option available in their area, a 35% savings.
- Across all metropolitan areas reviewed, Plan G monthly premiums ranged from $90 to $476.
- On average, Medicare beneficiaries had 6 Plan G options to choose from across all metropolitan areas reviewed.
Among Medicare Supplement Plan N plans, eHealth found:
- $648 per year ($54 per month) is the average potential savings identified for beneficiaries who enroll in the lowest-cost Plan N option rather than the highest-cost Plan N option available in their area, a 35% savings.
- Across all metropolitan areas reviewed, Plan N monthly premiums ranged from $78 to $284.
- On average, Medicare beneficiaries shopping at eHealth had 6 Plan N options to choose from.
Read the full report.
eHealth's findings are based on rates quoted for Medicare Supplement Plans G and N for 65-year-olds through eHealth.com in 67 metropolitan areas by zip code. Data reflect rates as quoted by eHealth between March 10 and March 17, 2021. eHealth may not offer all plans available in each zip code. The averages reported above may not reflect actual rates or plans available for each individual in each zip code. Refer to the report for additional methodology information.
Notes:
*Among eHealth customers aging into Medicare during the fourth quarter of 2020 and the first quarter of 2021.
About eHealth
eHealth, Inc. (NASDAQ: EHTH) operates a leading health insurance marketplace at eHealth.com and eHealthMedicare.com with technology that provides consumers with health insurance enrollment solutions. Since 1997, we have connected more than 8 million members with quality, affordable health insurance, Medicare options, and ancillary plans. Our proprietary marketplace offers Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other plans from over 180 health insurance carriers across fifty states and the District of Columbia.
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SOURCE eHealth, Inc.
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