How to compare Medicare Supplement Plans
Medigap plans were designed to cover the gaps in original Medicare that left seniors with out of pocket costs that could add up in a hurry. These plans are labeled by the letters A – N, with several letters in between no longer available. Medigap plans were standardized in 1992, which means the benefits in each plan design are the exact same with every insurance carrier.
For example: Mutual of Omaha’s Plan F Medicare Supplement has the same exact coverage as a Gerber Plan F Medicare Supplement. They both cover the same exact gaps in Original Medicare.
The 2 Differences when Comparing Medigap Plans
So remember when choosing a Medigap policy look for a good rate with a financial stable carrier. The most popular and comprehensive coverage on the market today is found in the Plan F Medicare Supplement. Good luck in choosing your Medicare Supplement coverage.
- Medigap Plans Vary in Cost: Some companies have very competitive rates in your zip code while others may not. Insurance companies have different ways of calculating their rates, different claims experience (loss ratios), and different administration structures which cause their rates to be quite different in many situations. Rest assured that just because the price is different does not mean that one plan offers more coverage than the other plan.
- Financial Stability: The financial stability of an insurance carrier is something that needs to be considered when choosing a Medigap policy. The last thing you want to deal with is your Medigap carrier going out of business because of financial troubles. When you are choosing your Medigap policy make sure to choose a carrier with a B+ or better rating with A.M. Best, this should help ensure you have a financially stable carrier.
Comparing Medicare Supplemental Insurance Plans