How do Insurance Premium Payments Work for Supplemental Plans (F, G, N)?

Here are answers to the most common questions regarding the Premium billing for your Medicare Supplemental Plan. 

When will the first premium be deducted from my bank account?

Most companies will draft your premium 7-21 days after you first enroll. They do this in order to issue the policy and mail out the cards. That premium payment will be applied towards your first month of coverage. Your next premium payment will be deducted during the second month after your coverage has gone into effect.

Note: If you are covered by an AARP / UHC plan you will not be billed in advance of your effective date. They generally draft on the 5th of each month, beginning on the month your coverage goes into effect. 

You need to change your banking method:

To change which checking or savings account your insurance premiums are being deducted from, find your supplemental plan insurance card and call the customer service 800 number The customer service team at the insurance company will take your new bank account information directly over the phone. 

You need to change the day of the month the premiums are deducted from your checking account:

To change the day of the month your insurance premiums are being deducted from your account, you can grab your supplemental plan insurance card and get the customer service 800 number off the card.  Call the phone number listed and they will take your instructions over the phone. 

The premium billed (or deducted from your account) was more than you expected:

This is usually due to one of these reasons:

  1. This is your first month premium and you were charged the initial policy application fee. Many insurance companies charge an application fee between $20-25. This fee doesn’t come to us, it’s just what the insurance company charges to process the application and there is nothing you or we are able to do to eliminate this cost.
  2. You were quoted a multi-policy discount and it isn’t reflecting in your premium amount. If this is the case, remember that the discount will not be applied until both you and your spouse’s plans have gone into effect. If both plans are in effect and your premium still doesn’t reflect the correct amount, please contact us and we will help you resolve the issue.

If you have a question about a premium billing need that hasn’t been answered by this article - please contact us.