Are all Medigap plans the same?

Medigap plans are federally standardized plans that have the same benefits from company to company.  That means all companies will offer the same Part A and B benefits for Plan F, for example – but the monthly premium you pay for that plan may differ from one company to the next. Different companies will also have different rate increase histories, and they may offer different supplemental benefits in addition to the plan (like a Silver Sneakers membership).

How many Medigap plans are there?

There are 11 Medicare Supplement Plans named after letters of the alphabet. I like to categorize them into three groups: the most common plans, the least common plans, and the plans that no one really uses. The most common plans are F, G and N. The least common plans are C and D and High-Deductible Plan F. The Medigap plans that seniors rarely ever enroll in, and the ones insurance companies are least likely to offer, which are A, B, K, L and M.

Are all Medigap plans priced the same?

While the benefits for a Medigap Plan F will be the exact same at any company – the pricing is not. Not only may the monthly premium differ from one company to the next, but the company’s history of rate increases could even indicate how stable (or unpredictable) your rates may be in the following years. Different insurance companies also have different market shares of your state; generally, the larger the market share, the more stable the insurance company.

When comparing Medigap plan prices, it’s important to do your research and think ahead, because the company with the cheapest Plan F for your age might not necessarily be your best choice. Maybe that plan is the cheapest option because it’s new to your state, and it’s offering introductory low rates to attract new members – just to hike rates later down the road. This is where a competent insurance broker can help analyze your options and help you choose a company not only with an affordable premium but with a stable rate history.

Are all Medigap companies the same?

Medicare Supplement Plan benefits are the same from company to company – but what about the companies themselves? While different companies will charge a varying monthly premium for the same Plan F, it’s important to also look at each company’s market share, historical rate stability, and any supplemental benefits it may offer.

While comparing Medigap companies, seniors may notice that companies have been assigned a financial rating of B+ or higher, and wonder: Does that affect the care you receive or the premium you pay? Financial ratings have no effect on the care you receive, nor will your doctor refuse you care because you chose a B+-rated insurance company. In financial circles, B+-rated insurance companies might indicate a risk – but to date, no studies have been done that show B+-rated Medigap companies hiking rates higher or more often than A-rated Medigap companies.

Are all Medigap agents the same?

Not all insurance agents are the same. Some are captive agents, which means they only represent one insurance company. This can be limiting if the company has higher rates, or doesn’t take certain medical conditions.

Then you have insurance brokers, who represent a number of different insurance providers, so they can shop multiple companies at once to get you the best plan at the best price. And since all companies offer the exact same Medigap plans, you’re basically comparing price – so an insurance broker can help you find a deal that captive agents can’t.

Should I enroll through an insurance broker or buy directly from the insurance company?

Medicare presents seniors with a lot of confusing options and making the wrong decision can end up costing you hundreds if not thousands of dollars per year. The best way to compare all your coverage options is to find an agent or broker to help you navigate Medicare and keep you up-to-date with its changes.

And remember, whether you go through an agent, broker or direct with the company on its website, you’ll still pay the same price for your supplement. Wouldn’t you rather have a local expert guide you through the decision process, at no extra cost? Working with a broker is like getting free advice from a personal shopper who will help compare all your options so you can make a more informed choice about Medicare. Why not take advantage of their experience and help, instead of trudging through the process on your own?