Is AARP United Healthcare really community rated? (Chicago: health insurance, calculated)

[InquiringOne]

We've been trying to compare costs via the SHIP*booklet 2018-2019 Medicare Supplement Premium Comparison Guide:

On page 13 of the Illinois SHIP booklet, AARP United Healthcare uses a*two tiered*community (no age) rating, but according to the medicare.gov site, UHC is Attained Age premium-calculated.*
Conflicting info and the term two tiered is very confusing.*

If it were truly community rated, then my wife and I would each pay the same rate upon applying.*
By using the AARP site, my wife's rate is $127 and mine $181 so it can't really be community rated-unless it morphs into community rating starting at age 75 when premiums are the same for those ages. I am 74 and she, 65. We both now have Open Enrollment for Medigap. I'm finally retiring at end of month.

We're also confused if that table means that's the annual price you pay IF you APPLY for the policy at those particular ages or those are this year's projected prices for the future?*
So I'm wondering IF I do get an AARP policy at age 74, which should be around $181 per their website, will my rate jump exponentially to $224/mo ($2,699 annual) next year then?

See info from our state's SHIP booklet, pg 13:
AARP/United Healthcare is the ONLY community-rated insurance company that services Illinois, but it is two-tiered.
See*page 13-last 2*paragraphs-of the previously noted SHIP booklet 2018-2019 Medicare Supplement Premium Comparison Guide here:

https://www2.illinois.gov/aging/ship...MedSupWeb.pdf*

We're very fuzzy about the 'two-tiered' community rating terminology. Does anyone have any insight?

The rate table for AARP is on pg 32 in above link so you can see what rates I'm referring to. From age 75-85, rates are same.

I hope someone can clarify this for me.

[damba]

You really need to call SHIP for this.

1-800-252-8966

[BOBNCHI]

Go over to the Health and Wellness Health Insurance forum. There is a lot of good info regarding age issue/attained age Medigap.

//www.city-data.com/forum/health-insurance/

[InquiringOne]

I did call and even email SHIP and was not given a clarifying answer.

I finally called AARP/UnitedHealthcare and was told the monthly base rate for community rating in my region is about $197. I can not remember the exact figure. The two tier comes into play because they give you a discount dependent on your AGE upon applying. The discount decreases by 3% until age 75.

It truly just seems to be a marketing tool. There are no other community rated policies in Illinois to compare. But based on the rates of other insurance companies in the SHIP booklet, UHC does have comparatively reasonable rates, especially as you get older.

[damba]

Glad to hear you were at least able to get a baseline figure. Sometimes the amount of calling required just to find out very basic information is unbelievable(!)

[InquiringOne]

The amount of calls & emails made have been mind boggling.
Here's an example of the email thread after my initial inquiry:

SHIP's Response:
The rates for AARP were given to us in August of 2018. The newest booklet is being compiled as we speak, so the rates in it will likely match the rates you were quoted. Companies change rates during the year.

As for Community rating, AARP submits their rates to the Illinois Department of Insurance (DOI) every year as part of a mandatory rate filing. They have always indicated that they are a Community Rated company. They have elected a two-tiered rating structure and the DOI has approved it as such. We just report what the DOI gives us.

I hope this helps.

My response:
Community rating or No Age rating definition is the premium for a specific policy is the same for EVERYONE over the age of 65.

Well, their rates are NOT the same as I am 65 and my husband is 72. If it was truly community rated, then our premiums would have been pretty much the same for the SAME plan. We know they charge more for males. We are both nonsmokers as well.

I understand SHIP reports what the Dept of Insurance reports as that's what said in booklet.

This two-tiered community rating is mystifying because WHEN does it become community rated? Certainly NOT at this stage.

RE the rates in your booklet's charts, I note that there are different rates listed per ages 65, 70, 80,and 85.
Are the rates applicable WHEN you first apply at that particular age?

Thank you.

SHIP's Response:
Community rating means that company charges the same rate for everyone. AARP chose to set this up as two-tiered, and the DOI has allowed them to differentiate between males and females, and also a different rate for smokers. The rates in our guide are for a non-smoking male in only one zip code in the region. As we state, only an agent or the company can provide you a precise rate quote.

Yes, the rates shown in the book are the age at which you apply for coverage.

Again, the information is only 100% accurate as of the date the rates are submitted. The rates you see were submitted in August of 2018. We cannot begin to create a consumer guide that shows every rate variable for every zip code, and every age breakdown. These rates “put you in the ballpark” so to speak. You see a sampling of rates from the companies, and then narrow your choices down based upon these generalities. Once you have whittled your choices down, you contact the company for a precise quote.

As you can see, NEVER was it clarified what 'two tiered' meant.

I decided to email them AFTER I called them as I did not get a satisfactory answer.