PALM BEACH GARDENS, Fla., June 12, 2000 – Consumers buying Medicare supplement insurance (Medigap) in Florida and New York are often being charged up to twice as much as consumers in Utah and Maryland, according to a recent national study by Weiss Ratings, Inc., the only provider of independent financial ratings on insurance companies.

Congress created 10 standardized plans -- from the no-frills "A" plan to the top-of-the-line "J" plan -- in 1992. Despite the standardization, the Weiss study, encompassing 38,000 quotes for 113 insurers, found that premium costs can vary widely on identical policies for the same individual -- not only from state to state, but from city to city and insurer to insurer.

"When Congress mandated standardized Medigap plans, it was widely expected that these price discrepancies would disappear or diminish," commented Martin D. Weiss, Ph.D., chairman of Weiss Ratings, Inc. "But they persist, with some companies still apparently overcharging consumers."

For example, a 65-year-old female in Salt Lake City would pay $504 for Plan A with Regence Blue Cross Blue Shield of Utah, but that same individual would pay $1,360 for Plan A in Miami with Bankers Life & Casualty (domiciled in Ill.), nearly three times more.

Even in the same location, price differences can be large: in Lafayette, La., United American Insurance Company (Del.) would charge her $2,048 for Plan F, while Golden Rule Insurance Company (Ill.) would only charge $1,096 for exactly the same plan.

In addition to Florida and New York, other states with the highest average Medigap premiums are California, Arkansas, Connecticut, and Wyoming. Meanwhile, other states with the lowest costs are North Dakota, Colorado, Iowa, Rhode Island, and Montana.

Looking at individual plans, the study found that Florida has the most expensive premiums for seven of the ten standardized Medigap plans (Plans A through G). Plans H and I are most expensive for residents of Arizona, while residents of Alabama are charged the most for Plan J.

In contrast, average quotes in Utah are lowest for the same seven of the ten plans, while New Jersey has the lowest average quotes for Plans H and I. Washington, DC residents pay the lowest prices for Plan J.

"Insurance companies attribute the price differences to two factors: the varying costs of medical care in different regions and the fact that some companies commit to long-term price stability, while others do not," said Dr. Weiss.  "The more pertinent factor is that some companies are aggressively bidding for new business, while others are simply charging inflated prices.  To avoid making an expensive mistake, consumers should shop around and consider each company's financial safety in addition to price."

Senior citizens shopping for the least expensive and safest Medigap policies can obtain a Health Insurance Report for Seniors ($49) by calling Weiss Ratings at 1-800-289-9222. The report, based on each consumer's individual circumstances, provides customized comparisons of the actual premium rates offered in his/her county of residence for each of the 10 Medigap plans, along with the Weiss Safety Rating for each carrier. The report also includes ratings and complaint data on Medicare HMOs, compiled by the Health Care Financing Administration, and a list of long-term care insurers with their ratings.

Weiss publishes safety ratings on more than 16,000 financial institutions, including HMOs, life and health insurers, Blue Cross Blue Shield plans, property and casualty insurers, banks, and brokers. Weiss also rates the risk-adjusted performance of more than 10,000 mutual funds. It is the only major rating agency that receives no compensation from the companies it rates. Revenues are derived strictly from its product sales. For more information, visit the Weiss Ratings web site at www.WeissRatings.com.

Average Quotes For Three Popular Medigap Policies

Data: Weiss Ratings, Inc., Palm Beach Gardens, FL, 561-627-3300

[1] Based on 47 states where rates for Plan A are currently available. A rank of 1 indicates the state with the lowest average premium quote for this plan.

[2] Based on 46 states where rates for Plan F are currently available. A rank of 1 indicates the state with the lowest average premium quote for this plan.

[3] Based on 41 states where rates for Plan J are currently available. A rank of 1indicates the state with the lowest average premium quote for this plan.