The Illinois Birthday Rule For Medicare Supplement Insurance
Here’s why the birthday rule can save you significant money. According to Medicare insurance statistics reported by the American Association for Medicare Supplement Insurance, a 70-year-old female in Chicago could pay as little as $109 monthly or as much as $279 for Medigap Plan G coverage. That amounts to a $2,000 annual difference.
The chart below reflects the various policies a 70-year-old female living in Chicago will have available. Being able to switch without health being an issue is a benefit only a few states make available.
2023 Rates for Medigap, Age 70 Female, Chicago, Plan G
- Allstate Health ($109)
- Sbli Usa Life Insurance ($110)
- Chubb Limited ($112)
- Medico Life ($114)
- Manhattan Life ($126)
- Nassau Life ($126)
- Lumico ($129)
- AARP United Healthcare ($130)
- Mutual of Omaha ($130)
- Aetna Health ($134)
- Liberty Bankers ($135)
- Union Security ($145)
- Humana ($147)
- Blue Cross/Blue Shield IL ($147)
- Cigna ($179)
- Bankers Fidelity ($226)
- Guarantee Trust Life ($235)
- New Era Life ($270)
Monthly premiums reflected November 2022 and subject to change. Reported by the American Association for Medicare Supplement Insurance. Zip Code 60015. Some companies offer multiple plan options. Least expensive reflected.
Click the link to find Illinois Medicare insurance agents
How Does The Illinois Birthday Rule Work?
The rule provides a 45-day window that starts on your date of birth. During this time, you can switch from your current Medigap plans to another without the need for medical underwriting. The new insurer cannot decline you for coverage because of what they consider a negative health condition.
While the window is 45 days, Medicare insurance experts advise starting early. Waiting until the final days could be problematic as submitting applications can take time. And be sure to ask your Medicare insurance agent about securing approval prior to cancelling any insurance coverage you currently have in place.
Who Can Benefit From This Rule?
Policyholders facing rate increases: Each year insurers can reprice your coverage. Many do and typically that means an increase. If your Medigap policy costs have increased, there may be a less costly option. A Medigap Plan F from one insurer will generally be identical to coverage from another. But ask to make sure.
Switching from Plan F to Plan G: At one time, Plan F was the most popular Medigap choice among those turning age 65. Today it is no longer available as a new plan option and many insurers have been raising rates for those who still have coverage. The only difference is the annual deductible which may be more than covered by the savings in monthly premium.
Find The Best Medigap Insurance Plan
While Medicare is a NATIONAL program, Medigap insurance is LOCAL. What insurance companies offer coverage and how much they charge is based entirely on the Zip Code where you live.
In some Zips there are just a few plans available. For example, in New York City, you might find 5 different insurance companies offering coverage. In Chicago or Dallas, there are going to be 20 or more.
For that reason, we recommend finding an independent local Medicare agent near me. The Association makes available a free online directory. Simply type in your Zip Code and see the listing of agents nearest to you. You decide who (if anyone) you wish to call or email. The system is completely private because we know consumers do not want dozens of unsolicited calls.
If you do contact a Medigap agent, here are some questions to ask them.
- How long have you been selling Medigap insurance?
- Which insurers do you sell? How many are you appointed with?
- What is the (premium) rate increase history for the company you are recommending?
- Have you helped others take advantage of the Medigap Birthday rule?
Additional Medicare Information You May Find Of Value
Please click on any of the links (below) to read other recent news stories or reports containing information we believe you may find of value.
What Medicare Supplement Is The Most Popular Medigap?
Home Care Services Increasingly Covered By Medicare Advantage
Key 2023 Medicare Advantage Data For Consumers
5 Tips To Find Your 2023 Medicare Prescription Drug Plan
About the Author
Jesse Slome
Medicare Insurance Expert
Director, American Association for Medicare Supplement Insurance
Jesse Slome is a leading Medicare insurance expert and the founder and director of the American Association for Medicare Supplement Insurance (AAMSI). Since 1998 AAMSI has served to educate consumers and support insurance professionals who offer Medicare insurance plans.
