How to Compare Medicare Supplement Plans and Find the Best Fit

Feeling a bit overwhelmed trying to compare Medicare Supplement plans, also known as Medigap plans? You're not alone! Once you enroll in Medicare (Original Medicare, that is – Part A and Part B), you might notice there are costs it doesn't cover. That's where Medicare Supplement insurance plans come in. They help pay for some of those costs that Original Medicare doesn't fully handle.

But with different plan options labeled with letters like Plan F or Plan G, how do you find the best fit for you? Let's break it down together and make understanding Medicare Supplement easier. Our goal is to help you compare plans and find the best one that best fits your needs.

Comparing Medicare Supplement plans can be tricky. Ensure you're getting the best coverage at the right price. Call Mountaintop Insurance Solutions at (541) 641-8886 for expert guidance today!

First Things First: What is Medicare Supplement Insurance (Medigap)?

Think of a Medicare Supplement plan (or Medigap plan) as a partner to your Original Medicare coverage. It's not the same as a Medicare Advantage plan (Part C). Instead, Medigap insurance is extra insurance you can buy from private insurance companies (like Aetna, Cigna, UnitedHealthcare, or AARP Medicare Supplement Insurance offered through UnitedHealthcare, for example).

These plans are designed to help cover your share of costs for services covered by Original Medicare. What kind of costs? Things like:

• Part A coinsurance and hospital costs

• Part B coinsurance or copayments

• Blood (first 3 pints)

• Part A hospice care coinsurance or copayment

• Skilled nursing facility care coinsurance

• Medicare Part A deductible

• Medicare Part B deductible (though plans covering this, like Plan F, aren't available to most people newly eligible for Medicare on or after Jan 1, 2020)

• Part B excess charges (if a doctor charges more than Medicare allows)

• Foreign travel emergency care

Essentially, these plans help pay the "gaps" in Medicare Parts A and B. That's why they're called Medigap! It’s important to remember that Medigap plans only work with Original Medicare. You cannot use a Medigap insurance plan if you have a Medicare Advantage Plan.

The Magic Word: Standardization

Here’s the most important thing to know when comparing plans: Medigap plans are standardized by the federal Medicare program. What does that mean for you?

It means that every plan with the same letter (like Plan G or Plan N) must offer the *exact same basic Medicare benefits, no matter which insurance company sells it. So, a Plan G from Company X offers the same core Medicare coverage as a Plan G from Company Y.

This makes comparing much easier, doesn't it? You're primarily comparing based on plan types (the letters) and then by price and company reputation for the same letter plan type.

How to Compare Medigap Plans and Find Your Best Fit

Okay, let's get practical. Choosing the right Medicare Supplement involves a few key steps:

Step 1: Decide Which Plan Type Fits Your Needs

Since plans are standardized, your first job is to figure out which level of coverage you want. Look at the different letter plans available (usually A, B, C, D, F, G, K, L, M, N – though availability can vary, and C & F are restricted for new enrollees).

• Consider: How much coverage do you want? Are you okay paying some costs yourself (like the Part B deductible with Plan G or copays with Plan N) in exchange for potentially lower monthly premiums? Or do you want the most comprehensive coverage available to you (like Plan G for many)?

• Think about your health: Do you visit the doctor often? Do you anticipate needing more healthcare services?

• Think about your budget: What can you comfortably afford for a monthly premium?

This helps narrow down which type of plan (Plan G, Plan N, etc.) may best fit your needs. You need to be enrolled in Medicare Part A and Part B (and usually specifically enrolled in Medicare Part B) to enroll in a Medicare Supplement plan.

Step 2: Compare Prices for Your Chosen Plan Type

Once you've picked a letter plan (let's say you decided Plan G is the right plan for you), now you compare prices for that specific plan type from different Medicare supplement insurance companies.

• Remember: A Plan G is a Plan G in terms of basic Medicare benefits. But different Medicare supplement insurance companies can charge different monthly premiums for the same Plan G.

• Get quotes from several health insurance companies that offer plans in your area. Prices can vary based on the company, your location, age, and sometimes gender or tobacco use.

• Don't just look at the current price. Ask about the company's history of rate increases. Some companies offer lower introductory rates that might go up more steeply later.

Step 3: Look at the Insurance Company's Reputation

Price isn't everything. Consider the insurance providers themselves:

• Customer Service: How easy are they to work with? Do they have good reviews?

• Financial Stability: Look for companies that are financially sound (ratings agencies like A.M. Best provide this info).

• Experience: How long have they been offering supplemental Medicare insurance?

Step 4: Enroll in Your Chosen Plan

The best time to enroll in a Medicare Supplement plan is during your 6-month Medigap Open Enrollment Period. This period starts the month you're 65 or older and enrolled in Medicare Part B. During this time, insurance companies cannot deny you coverage or charge you more due to your health. Outside this period, switching plans or enrolling later might be harder or more expensive, as underwriting (a health review) may be required.

What Medigap Plans Typically Don't Cover

It’s important to note that Medicare Supplement plans generally don't include certain things:

• Prescription Drug Plan: Medigap plans typically sold today do not include Medicare prescription drug coverage. You'll likely need to buy a separate Medicare Part D prescription drug plan.

• Routine Dental, Vision, or Hearing Care: Medicare doesn’t cover these, and neither do Medigap plans.

• Long-Term Care: Help with daily living activities isn't covered.

• Medicare Advantage (Part C): Again, Medigap and Medicare Advantage are different. You choose Original Medicare + Medigap OR a Medicare Advantage Plan.

Finding Help

Feeling stuck? You have resources!

• Medicare.gov: The official federal Medicare program website has tools to compare plans available in your area.

• State Health Insurance Assistance Program (SHIP): Your state offers free, unbiased counseling to help find the best Medicare plan options.

• Licensed Insurance Agent: A licensed insurance agent specializing in Medicare can help you compare plans from various private insurance companies offering Medicare Supplement insurance. They can explain the nuances and help you find the right Medicare supplement insurance plan one that best fits your situation.

Choosing the Right Medicare Supplement Plan

Comparing Medicare Supplement plans boils down to understanding standardization, deciding on the coverage level (plan type) you need, comparing prices for that specific plan from reputable insurance companies, and enrolling during your best window.

Take your time, do your research, and choose the best Medicare Supplement insurance plan that best fits your health needs and budget. Selecting the right Medicare supplement insurance can give you valuable peace of mind knowing you have help covering those Original Medicare costs. You can find the best Medicare supplement for you!