PALM BEACH GARDENS, Fla., July 7, 1997 -- Florida seniors are consistently being charged the highest premiums nationwide for Medicare supplement insurance (Medigap), according to a recent study by Weiss Ratings, Inc. The study, based on 6,118 price quotes by 153 insurers in 50 states and the District of Columbia, also concludes that Utah’s senior citizens pay the lowest rates in the U.S. -- almost half as much as those charged in Florida.

Florida seniors pay the highest premiums in eight of the ten Medigap plan types available – from the no-frills Plan A to the top-of-the-line Plan J. Louisiana seniors pay the highest premiums in two of the plan types, according to the study.

Conversely, Utah seniors pay the lowest premiums in six of the ten identical categories. Other states with low premiums include Montana, Iowa, Hawaii and Alaska.

"While regional differences in premiums are a natural reflection of differing medical costs, our analysis shows that rates also vary greatly from company to company in the same location," said Martin Weiss, founder of Weiss Ratings, Inc. "The prices vary despite the fact that the policies offered have standardized benefits mandated by Congress. It pays to shop around."

The companies charging the highest individual rates nationwide include American Pioneer Life Insurance Co. in Florida and American Republic Insurance Co. in Florida. Prudential Insurance Company of America, the largest single writer of Medigap policies, has continually jacked up its rates in most states. Once one of the least expensive carriers, it is now among the three companies charging the most for several plans.

Companies offering the lowest individual rates nationwide include Anthem Life Insurance Co. of Indiana in Texas, Pioneer Life Insurance Co. of Illinois in Delaware, Statesman National Life Insurance Co. in Oklahoma, Blue Shield of South Dakota in South Dakota and Celtic Life Insurance Co. in Virginia.

Consumers who shop for a Medigap policy can save more than $1,800 per year, according to the study. Prudential Insurance Company of America, for example, charges $1,810 more than Principal Mutual Life Insurance Company for an identical plan covering a 65-year-old male in West Palm Beach, Florida. Similarly, in Salt Lake City, Utah, National States Insurance Company charges $1,818 per year more than Blue Cross and Blue Shield of Utah for a 65-year-old male.

"The price differences among companies are so large that seniors shopping for Medigap can save hundreds -- sometimes thousands -- of dollars in premiums per year without sacrificing benefits or safety, while retaining Medigap as an affordable alternative to HMOs," commented Mr. Weiss. "Now, in light of new federal legislation that will raise Medicare costs for higher income couples (those with combined annual incomes in excess of $75,000), saving money on Medigap premiums is more important than ever."

Senior citizens shopping for the least expensive and safest Medigap carriers can obtain a $39 Medigap Price Comparison by writing to Weiss Ratings, 4176 Burns Road, Palm Beach Gardens, FL 33410, or by calling 800-289-9222. Callers will be asked to provide age, gender, zip code and county of residence; and Weiss will provide customized lists -- based on the consumer’s individual circumstances -- of the actual premium rates offered for each the 10 Medigap plans, along with the Weiss Safety Rating for each carrier.

Weiss, the only independent rater of insurance companies, issues ratings on over 16,000 financial institutions, including life and health insurers, Blue Cross/Blue Shield plans, HMOs, property and casualty insurers, banks and brokers. Weiss Safety Ratings are available at many local libraries.

# # #

Attached are tables showing the states and companies with the most and least expensive Medigap policies nationwide.

Insurers Offering The Most Expensive Medigap Policies In The U.S.

(Actual Quotes per Plan)

Insurers Offering The Least Expensive Medigap Policies In The U.S.

(Actual Quotes per Plan)

* dba Blue Shield of South Dakota

Note: All quotes based on 65-year-old male. Results for others will vary.

Quotes as of June 1997

States With The Most Expensive Medigap Policies
(Average Quotes per Plan)

States With The Least Expensive Medigap Policies
(Average Quote Per Plan)