When you get your Medicare supplement quotes you need to decide what plan you want. All the plans are federally standardized so there is no variation in what a certain plan covers for one company and what that same plan covers from another company. However, what the different lettered plans cover does vary and so does what the different insurance companies charge for them. So, consider come of the information below to help you decide.
Nationwide the three most common plans are F, G, and N.
- Medigap Plan F. This is the most common and comprehensive plan. It covers everything that Medicare doesn’t cover at the doctor and hospital so that you don’t have any out of pocket costs with exception of your monthly premium.
- Medigap Plan G. This plan is one step below Plan F. It does not cover the Medicare Part B yearly deductible. That, however, is the only difference between those two common plans. This plan may save you some money but if you use Part B you will pay out of pocket cost up to the yearly deductible amount. This plan will not have a total cost that is more than Plan F.
- Medigap Plan N. This is a lower-tier plan that has some cost-sharing ($20 doctor’s office co-pay and $50 emergency room co-pay) in exchange for lower monthly premiums. It is designed as an alternative to Medicare Advantage plans, while still giving you the flexibility and stability of a supplement plan.
Some things to consider that may cause you to re-evaluate the plan you want. For example, If you do not want to worry about out of pocket expenses and just want to pay a monthly premium then plan F may be right for you. On the other hand, if Plan G is $250 a year less than Plan F and the only difference is a $162 a year deductible then Plan G might make more sense. Another thing that should be taken into account is your health. If you have some ongoing health problems that require many doctor visits you may not want to look at Plan N because of the co-pays, unless it was your only option. If you are in great health, do not mind paying out of pocket expenses, or just want some basic coverage then one of the other plans may suit your needs better.
Some plans are more common in different areas. But nationwide, Plans F,G, and N are the three plans that for many are seen as the best competitively priced options. Also see the page on alternatives to Medigap / Medicare supplement insurance before you make a final decision.
What a company is going to charge you for a monthly premium is one of the most important factors when deciding between companies. You may also consider a companies financial stability. When you get your quotes through Centaur Medicare Solutions you will also get the AM Best rating if available. The AM Best Rating is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive evaluation of a company’s balance sheet strength, operating performance and business profile. Most Insurance companies have an AM Best rating.
Once you have all of the information together, you can easily make an informed decision on what Medicare Supplement plan will best meet your needs and what insurance company sells that plan at the best rate. Once you have decided what plan and what company then send your agent an email or call and ask for an application.
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