Standardization of Medigap Plans
Medigap plans were standardized in 1992 and were “re-standardized” allowing new changes to go into effect June 1, 2010. Basically the standardization of Medigap plans required all insurance companies to offer the same coverage in Medicare Supplement Plans (A – N). This was required so that plan comparison would be easier and so that benefit structures could not change after someone already had a specific plan.
"Each standardized medigap policy must offer the same basic benefits, no matter which insurance company sells it. Cost is usually the only difference between medigap policies with the same letter sold by different insurance companies." — Choosing a medigap policy booklet.
Information to Remember
Since each carrier’s benefits are the same there are two important things to remember:
- Cost is important! In most states rates will increase every year little by little. After 3-4 years that little rate increase has you paying $60 more a month than you were originally paying. It is not uncommon for some to use the Medicare Supplement Quote Engine and realize that they can save over $500 a year and not decrease their benefit. If you think you may be paying to much fill out the simple online quoter and check your Medigap rates.
- Financial stability is crucial! Purchase a Medigap policy from financially stable carriers. Only consider carriers with a B+ or higher rating with A.M. Best (one of the most well-known rating agencies). The last thing you would want to do is purchase a Medicare Supplement policy with a carrier that has to close its doors because it can not longer pay its customer’s claims. I am not saying that the state insurance department would not step in to help, but you would rather not be in that situation.
If you would like to check your rates call 1-877-936-2991