Which Medigap Company You Should Choose

There are many companies that offer Medigap coverage. When considering which Medigap company to enroll with for your Medicare Supplement coverage, there are some things you need to take into consideration. We have provided this Medigap plan review page to help you know what to look for in the company behind your Medicare supplement coverage.

Medigap Coverage is Identical From Company to Company

Every Medigap Plan (Plans A through N) is standardized by federal legislation which governs how the plans cover you. This means that one company cannot change how they cover the gaps in Medicare. Choosing one company over another will not change how your gaps in Medicare are covered. As we have covered extensively in other articles on our website and videos, a lettered plan such as Plan G or Plan N has identical coverage from one company to another. Regardless of the company you choose, the coverage is the same for that letter.

Some companies may try to entice you with costly added benefits – like SilverSneakers or discounts on additional services. These additional “benefits” cost you more in the long run. As we mentioned in our article where we talk about buying your gym membership out of pocket, it is cheaper for you to buy a lower cost Medigap plan with identical coverage and pay for the membership out of pocket. Besides, just in the last 18 months, most companies have stopped offering Silver Sneakers. In most states, there is only one high-priced Medigap plan offering that extra, and there is no guarantee that they will continue, either.

Most gyms give a discount to Seniors. You can almost always find a gym membership for less than $25 a month, sometimes even less. Planet Fitness and others offer memberships for just $10 per month. Yet, the companies that offer an included gym membership are usually $25 to $45 more per month for otherwise identical coverage.

Customer Service Considerations

Claims Handling

First of all, if you enroll with Integrity Senior Solutions, dealing with the insurance company is not something you will have to worry about. We take the stress out of dealing with problems related to your Medigap coverage. If there is ever an issue, you can call us directly.

If Medicare approves a claim, it cannot be denied by your Medicare supplement company. When your provider submits the bill for claim payment to Medicare, Medicare will pay its portion and then forward the claim directly to your insurance company. This process is referred to as “crossover” claims. It is all done electronically and seamlessly.

It is important to also note that there are a lot of complaints and bad Medigap plan reviews on the internet. In almost every single case, those complaints are referring to Medicare Advantage plans. “Advantage” plans are well known for their billing issues and claim denials. Many companies offer both Medigap and Medicare Advantage plans. Some of these companies include Aetna, Cigna, Humana, Blue Cross Blue Shield, and UnitedHealthcare.

Complaints about these companies will be referring to their Medicare Advantage division. The companies do not have their Medigap and Advantage divisions working together. In most cases, those divisions are in totally different cities. The billing and claims processes are completely different, so they keep them separated.

I can tell you with 100% certainty after working in the Medigap arena for over 27 years that the claims handling by Medigap plans is almost flawless from our experience. In contrast, when we first tried the Medicare Advantage plans a few years ago, we had more claims in the first few months after those policies went into effect than we had in several years of working with Medigap only. It is one of the reasons we went back to concentrating on Medigap, despite the fact that Medicare Advantage pays the agent more than twice the commission. Giving our clients the best recommendations is paramount to our success. And it’s one of the reasons we chose the name Integrity Senior Solutions.

Replacement Cards and Billing Changes

The biggest reason you may feel the need to call a company directly is to get a replacement card or change your billing information. You don’t even have to call them in that situation, either. You can call us and we will handle your customer service needs so you don’t have to call the company. People sometimes tell us when we find that they have called directly that they didn’t want to bother us with a petty service issue. But that is what we are here for. We take care of even the small issues for you!

Your Agent is Paid By the Company to Help You

You have the option to go directly to the insurance company to enroll for coverage. Most companies offer direct enrollment. They are happy when you do that. You see, the agent is paid a commission for providing all of these valuable services to you. That commission is already figured into the premium you pay for coverage. So if the company can cut out the agent, they are happy. That is more profit for them.

Then when you need a replacement card or a claim somehow gets messed up, you only have one option – you call the company yourself. If it is a time of high call volume, you get to sit on hold and listen to music you don’t like so that you can talk to someone who doesn’t have a vested interest in looking out for you. When you enroll through us, you pay the exact same premium. But when an issue arises, you call us and we handle it from there. That is the value of using Integrity Senior Solutions as your independent agency.

Choice of Doctors, Specialists, and Hospitals

Unlike Medicare Advantage plans, there are no network restrictions. You can go to any doctor, specialist, hospital, or any other facility without worrying about whether they are in network. And you also need NO REFERRAL to go see a specialist! As long as your doctor accepts Medicare, your Medigap plan will pay the gaps according to the plan coverage you have.

Your doctor does not care who your Medigap provider is. They file the claim with Medicare and then it is out of their hands. They actually prefer the Medigap plans because it is less hassle for their office staff. As I mentioned, dealing with all the issues related to the Medicare Advantage plan claims is a major headache.

The BIG Factor – Financial Stability

The one area that needs the most attention when it comes to the Medigap plan review process is financial strength and rate stability. This is where you really need to be on your toes when it comes to choosing the best Medigap plan.

As we have covered extensively here and in other articles on our website, the plans are identical from company to company. What is not identical is the company offering the coverage. The premium varies from company to company mostly related to how much they are sending out each month in claims versus the premium that is coming in. This is referred to as the loss ratio. Loss ratio is one of the factors we consider and share with you when considering which company will work best for you. If a company is not making a profit with a high loss ratio, that is a telltale sign that a rate increase is imminent.

It is also important to check the rate history of the company you are considering. Sometimes that information is not easily available. Being active in the business for 3 decades, we have seen companies play little tricks like opening a new company under a new name so they can bring lower rates. Then those who have had some health diagnosis and are not able to pass underwriting to move to the new company are stuck in an old plan where the rates are going to start going up exponentially. These are facts you will not get by calling the company directly to enroll. We have seen how some of these companies have badly treated their customers. We know who to avoid.

Lowest Rate is Not Always Best

Another issue is with new companies coming in with low rates. It happens almost every year. We get notified by the big insurance marketers that some new company is coming to certain states and their rates are going to blow everyone out of the water. And they do. They come in with low-ball rates. Then the less experienced agents who don’t know what is about to happen will enroll people into these cheap plans. They sell by price alone, and it is a pretty easy sell.

We are all about saving you as much as possible on your premiums. The problem arises 18-24 months down the road when that new company has written a good bit of business and then raises the rates up really high. We see it every year without fail. Cheaper is not always better. You have to find a balance.

As a general rule, we also like to stick with companies that are A-rated or better with A. M. Best rating company. We do have a few B+ carriers that we represent, but only those with whom we have seen keep rates steady and give good customer support. Sometimes our clients prefer going with the cheapest company regardless of their rating. That’s your choice and we can still help you with those. We prefer the more stable and higher-rated companies when possible. We are always trying to look out for our clients first and foremost.

So What is the Best Medigap Company?

There is no definitive answer. I know. I know. You wanted a straight answer on it. Believe me, I’d love to give you one. There are a lot of factors that go into choosing which company will be best for you. But I will tell you what we recommend at Integrity Senior Solutions.

We do have a handful of companies we prefer to use when it is feasible. Our agency has worked with them long enough to know who has the best support and the best rate history. We want to recommend companies that take care of you, our client.

When we run your comparison, we like to look for one of the companies with a very long track record of taking care of their (and our) customers. We are not beholden to one company or group of companies. That is one of the beautiful things about working with an independent agency. We work for our clients. We are not employees of any insurance company.

You can find out which plans are offered in your area at what price by sending us a message through the contact form on this page or calling us at 1-888-228-6119. One of our licensed agents will provide you with a comparison of all the plans. We give you the information you need to make an informed, educated decision. I know that is what you want to do. Otherwise, you would not be reading this article and researching your options so thoroughly. We can help. Best of all, our services are FREE before and after coverage begins. Let us know how we can best serve you.

1-888-228-6119

Medicare Supplement (Medigap) insurance policies do not provide prescription drug coverage. If you have a Medicare Supplement plan, you can still get drug coverage through a separate prescription drug plan through companies that offer drug plans. Prescription drug plans are also known as Medicare Part D.

New for 2025: $2,000 Annual Cap On Out-of-pocket Prescription Costs

In 2024, once your out-of-pocket spending on prescriptions exceeds $3,300, you qualify for Medicare’s “catastrophic coverage” and won’t have to pay anything for your covered Part D drugs for the remainder of the year. (In 2023, when you reached catastrophic coverage, you still had to pay 5% of your drug costs.)

However, a new rule goes into effect for 2025. Individuals with Part D plans will be limited to $2,000 in out-of-pocket costs, because of the Inflation Reduction Act of 2022.

Insurance Companies Are Making Cuts and Adjustments

How To Get Medicare Part D Prescription Drug Coverage

If you are on a Medicare Supplement plan, you can enroll in a stand-alone Medicare Part D prescription drug plan. Another option is to move to a Medicare Advantage plan. Although over 80% of Medicare Advantage plans have drug coverage included, most Seniors are not willing to give up the freedom and autonomy they have with a Medigap plan to go onto a Medicare Advantage plan with all of its restrictions. You cannot be enrolled in a Medicare supplement and a Medicare Advantage plan at the same time.

There are only certain situations under which you can enroll in a Medicare Part D plan. This includes when turning 65 or going onto Part B of Medicare for the first time. In both cases, you can enroll three months before or three months after the month that your Part B coverage begins. You can also enroll or change plans each year during the Annual Election Period (AEP). That period runs from October 15 through December 7. AEP restrictions apply to Part D or Medicare Advantage plans only. With your Medigap plan, you can make changes to your plan at any time of year.

Enrolling in Standalone Medicare Part D Prescription Drug Plans

There are a lot of prescription drug plans to choose from, and you don’t want to shop on premium alone. If you need a standalone Part D prescription drug plan, you can find a plan on our website. You can enter your current drugs to see what your total out-of-pocket costs will be.

We do not offer every company through our DrugPlanInfo.com website. This is intentional. We have selected the companies that we work with and we recommend available for comparison. If you want to see every possible option for drug coverage, you can visit the Medicare.gov website. You can also call Medicare at 1-800-MEDICARE (800-633-4227).

Compare recommended drug plans in your area – CLICK HERE

Simply going with the lowest-priced plan is not a good idea. There are premiums, deductibles, and co-pays on each drug that should all be considered. By using the link that I provided above, you can enter your current drugs and it will check all plans for those premiums, deductibles, and co-pays to see which will be the cheapest based on your total out-of-pocket costs.

You may find a plan with a low premium that has a very high co-pay for a drug you currently take. But maybe another plan with a higher premium has a lower co-pay each time you get your prescription filled. This is why it is important not to shop Medicare Part D drug plans on premium cost alone.

The advice on this website is informational. 

Stanley Keith Murray is an independent agent and the founder of Integrity Senior Inc. He has 30 years of experience working with Seniors to meet their insurance and financial needs.

Many insurance agents and insurance companies know that price sells. Unfortunately, in the race to the bottom on price, many will sell a policy on price alone. It makes for an easy sale for them. But this can be very costly to you in the long run. The Medigap company rating with companies like A.M. Best plays a vital role in determining long-term rate stability. A low rate today does not guarantee rate stability tomorrow!

Medigap plans are the absolute easiest insurance product to comparison shop. That is because the coverage for any particular plan is identical from company to company. You never have to worry whether you are comparing apples to apples on Medigap plans. The Medigap plan you choose – whether Plan G or Plan N or another plan – offers the same coverage no matter what company name is on your insurance card.

When you are trying to choose from the 25-plus carriers that offer plans in your area, price should not be the lone determining factor. The Medigap company’s rating should be a determining factor. If you are in your Open Enrollment or a Guaranteed Issue period, you have one chance to go with whichever company you want to. There are no medical questions to be answered during this period. You don’t want that fantastic opportunity to be wasted. These are the factors you need to consider when making that choice.

Click here to see the companies we represent and our reviews of those Medigap companies.

Company Financial Ratings Matter

The leading independent rating company for insurance carriers is A.M. Best. It is the oldest and most widely recognized provider of ratings, financial data and news with an exclusive insurance industry focus.

The ratings can help you determine a company’s size and stability. At Integrity Senior Solutions, we recommend carriers with a rating of B+ or higher for Medigap coverage. These companies will typically be more established and have more money in reserves than companies with a lower rating.

Longevity Matters

With over 28 years in the Medigap business, we have seen companies come and go. Even some very strong companies, like AFLAC, have entered the Medigap market only to leave it shortly thereafter.

Over the years there have been many small companies that enter new Medigap markets. As of the writing of this article, we have seen three new small companies come in with some really low rates in the last few weeks. Two of those three are companies we had never heard of before.

Consider Both Ratings and Longevity Together

It is important to consider the Medigap company rating with independent companies that rate insurers. It is also important to be aware of the history of the carrier in the Medicare market. Just as we don’t recommend low-rated companies, we also do not recommend companies that are new to the Medicare market.

We have seen many times where even an established company in one state will expand to a new state with unrealistically low rates. Each company has a team of actuaries who determine what the anticipated loss ratio will be for their company. Loss ratio is how much claim money and expenses are being paid out versus how much premium money is coming in. The percentage of expenses to income is the loss ratio. We have software that shows us the current financial ratings and loss ratio of every company in the market. We can share that information with you, saving you hours of research on your own!

The actuarial process of determining what the anticipated loss ratio will be is very advanced and complicated. Some companies nail it. Others miss it by a mile. When they do miss it, it means that the loss ratio is going to be very high. It also means that a large rate increase is very likely coming soon.

Don’t Get Trapped With a Bad Company

Here is a scenario where a high loss ratio and rate increases would be problematic: Mary is turning 65 and in her Open Enrollment period. She has developed a chronic health condition that will always be there. Right now in Open Enrollment, Mary can choose coverage with any Medigap company she desires without having to be underwritten.

Mary chooses to go with the lowest available price on the plan she chooses. She does no research and gets no help from an independent agent. For the first 12 months, Mary’s rate is locked in. But because of the company not pricing themselves appropriately for the market, she gets a rate increase of 20% when her rate lock is over. This increase hits her budget hard because she is on a fixed income.

The problem is – with her chronic health condition – she will likely not qualify to go with a cheaper company to save money. She is outside of her Open Enrollment – which lasts 6 months from Medicare Part B eligibility. Mary is now stuck with this company no matter what their rate increases are in the future. It’s either that or go with the limited coverage of a Medicare Advantage plan – not recommended with her chronic condition and need for many medical services.

Annual Election Period (AEP) Won’t Help!

Because of the tremendous amount of marketing in the fall about the Annual Election Period, many people assume they can switch plans during that time. Some well-known companies even use misleading advertising and refer to AEP as “Open Enrollment.” It is not. AEP only applies to changes in your Part D drug plan or Medicare Advantage plan. Outside of Open Enrollment or Guarantee Issue periods, the only way to change Medigap plans is to go through an underwriting process. Since Mary has a chronic condition, she is very unlikely to qualify to change companies or plans.

Mary does have the option during AEP of dropping her original Medicare and going with Medicare Advantage. As long as she lives in the service area of the plan and does not have End Stage Renal Disease, she can make that switch. But Medicare Advantage is a Medicare replacement plan. What if her doctors who provide her care are not in her network under that Medicare Advantage plan?

We get a lot of calls from people looking to leave their Medicare Advantage plan to go back to original Medicare once a bad report comes from the doctor. I cannot remember ever getting a call from someone with a chronic health problem who wanted to leave their Medigap for a Medicare Advantage plan. For more on how Medigap plans and Medicare Advantage compare, check out our article at this link.

Don’t Pay More For a Name Brand

At the same time that it is important to look for an established, highly-rated company, there is also no need to pay a higher premium to go with a well-known brand. There is no difference in Medigap coverage because of the name of the company! We often get asked about Silver Sneakers and other added benefits some plans offer. The Medigap coverage is the same, but they add this enticement. Here is a snippet from another of our articles that addresses this:

A side note about Silver Sneakers – there are a couple of companies that do offer those memberships for “free” when you take their Medigap coverage. The problem is that those companies are usually $50-60 more per month than other companies for identical coverage. So it is not free. They are just rolling the cost of it into the premium in hopes that you will be enticed and drawn by their well-known brand name company.

It’s not worth it. Save on the premium and buy your own membership. Most gyms offer discount plans for adults age 60 and over. It will cost you way less than the difference in premium. We did our own research. Most gyms we have checked with offer memberships for anywhere from $8 – $22 per month for Seniors, and even less per person for a couple. Don’t pay $60 more for your Medigap plan to get a brand name and membership that is worth less than $22.

All the Medigap plans are standardized by law. A company cannot change any of the core benefits of those plans A-N. So whether you have a Cigna Plan G or a Mutual of Omaha Plan G or Aetna Plan G, the benefits are identical.

Are Smaller Companies Safe to Work With?

As we mentioned, it is important to check the Medigap company financial rating of the company you are considering. We can help with this information. You don’t have to automatically disqualify a company that you’ve never heard of. Any company with a B+ or better rating is capable of handling a large influx of claims all at once. If they also have a good rate history, we have no issues with recommending them. My own mother has been with a B+ rated company for 4 years that you’ve likely never heard of. They have paid their claims like clockwork.

A smaller company may not be as well-known to you. One reason is that many of them depend on the agents to get the word out about their plans. They have chosen not to spend millions and millions on advertising like the big brands do. That savings is passed on to you in the form of lower premiums.

Big and Small Companies ALL Pay the Same Way

You may know someone that has a big brand company and loves to brag on how well it pays. That’s no big deal! ALL companies have to pay well.

When Medicare covers their 80% of your doctor charges, your Medigap company HAS TO pay their 20%. They cannot decline their portion. They cannot dispute their portion.

Medicare passes the claim to your Medigap company seamlessly through a process called crossover filing. It is done electronically. It is one of the main reasons we rarely have to follow up on claims with Medigap plans. Your doctor files, Medicare pays, your Medigap plan pays, period.

Finding the Best Companies for Medigap

That last scenario with Mary sounded pretty awful. But it is not uncommon. By working with an independent agency like ours, we can provide you with the A.M. Best rating of any company. We can also tell you how long they have been in the Medicare business and what their rate history looks like.

We get asked often if we represent all of the available companies in a particular area. While we do offer most companies, we have found that some companies do not meet our high standards on their rate increase history or customer service. We only want the best for our customers.

There are many very strong, very well-known companies that have a long history, including reasonable rate increases from year to year. If you have been diagnosed with a chronic health condition or have a history of it, you will want to find a company that fits that criteria. Even if they are a few dollars more in the beginning, in the long run, it could save you substantially.

As I mentioned, we have special software that allows us to see every company’s rate, financial rating, rate increase history, and history in the market. We can share this with you by utilizing our screen sharing option in real time. We can also provide a PDF comparison for you to look at.

Give us a call and let us go to work for you. Our service is free. No matter what company you choose, you pay the same whether you call the company directly or utilize the many services of an independent agent.

Call us today at 888-228-6119 or use the form to send us a quick message!

This week we had a case with a gentleman who had diabetes and a history of mild neuropathy. On the applications for most Medicare supplement companies, they are not questioning the severity of diabetes with neuropathy or retinopathy.  They simply want to know if you have been diagnosed with it or treated for it within a certain timeframe. The good news is that there are companies that will accept you if you have diabetes with neuropathy, so there could be coverage available for you under Medicare supplement for diabetes with neuropathy.

Diabetes With Neuropathy When New To Medicare

If you are turning 65 or leaving an employer plan and enrolling in Medicare Part B for the first time, most of what we will discuss here to does not apply to you right now. When you first enroll in Part B, you have an Open Enrollment period that entitles you to choose any Medicare supplement plan that you want – no questions asked – for 6 months following your enrollment into Part B. So finding a Medicare supplement for diabetes with neuropathy is not an issue. While in Open Enrollment, you can enroll with any company you choose for any plan available. There is no waiting period. You are covered from day one under the Medigap plan of your choosing if enrolling during Open Enrollment.

If New To a Medicare Advantage Plan

Medicare has a provision for those that enroll in a Medicare Advantage plan and want to leave it during the first 12 months. This is referred to as your Trial Right. Information available on the federal government’s Medicare.gov website says that if you joined a Medicare Advantage Plan or Programs of All-inclusive Care for the Elderly (PACE) when you were first eligible for Medicare Part A at 65, and within the first year of joining and then decide you want to switch to Original Medicare, you can purchase any Medigap plan available in your state from any company you choose.

They are required to sell you a Medicare supplement. They must cover all pre-existing conditions. Also, they cannot charge you more because of your health. You simply can call Medicare to disenroll from your Medicare Advantage plan and move back to original Medicare. They can also help you choose a Part D Prescription drug plan at the same time.

Call us and use our free comparison shopping service to find the best plan in your zip code if you are wanting to take advantage of this provision. Our number is 888-228-6119 and a licensed independent agent will be glad to assist you.

Guaranteed Issue For Losing Group Coverage

If you are losing employer coverage and are already covered by Medicare Part B, you have certain guaranteed-issue rights that allow you move onto a Medigap plan. Here is the information from the Medicare.gov website concerning that:

You have the right to buy Medigap Plan A, B, C, F, K, or L that’s sold by any insurance company in your state.

If you have COBRA coverage, you can either buy a Medigap policy right away or wait until the COBRA coverage ends.

You can/must apply for a Medigap policy no later than 63 calendar days after the latest of these 3 dates:

• Date the coverage ends
• Date on the notice you get telling you that coverage is ending (if you get one)
• Date on a claim denial, if this is the only way you know that your coverage ended

For Everyone Else

If you are outside of an Open Enrollment or Guaranteed Issue period, you will have to go through underwriting to enroll in a new Medicare supplement plan. There are some companies that will take you depending on the severity of your diabetes with neuropathy.

With the gentleman I mentioned at the beginning of the article, he was taking Metformin to control blood sugar and Gabapentin for the pain in his feet from neuropathy. We had two companies in the state of Georgia that would accept that situation according to their application for coverage. The first company wanted to know if within the past five years he had been prescribed or taken more than 100 units of insulin a day. Considering his other health history was good, other than taking a medication to control blood pressure, cholesterol, and a pain medication for an injury, he was eligible for coverage with them. However, every underwriting situation is different. So let us compare your health history against all the companies to see where you may qualify.

This gentleman would also qualify for one other company that has a history of unstable rate increases. We were looking at a Plan G Medicare supplement for him. The issue we had with this other company was that their Plan G was just released last month. And considering that there is a $70 premium difference between their Plan F and Plan G, I am not comfortable putting people with them just yet. That is a very big premium difference considering the only thing Plan F covers that Plan G does not is the Part B deductible, which is $183 in 2017. Also, considering the rate increase history of this company, I am not confident that their premium will stay that low for long. If his health were to decline any at all, this client may be stuck in that plan and forced to pay whatever premium they increase to for those covered under Plan G.

Conclusion

As I mentioned in the article, every underwriting situation is different. Let us check to see where we can get you placed. Our service is free. It costs you the same exact price whether you go directly to the company or use an independent agent, like Integrity Senior Solutions. If you go directly to the company, they will never tell you their competitor’s prices. They will not tell you of their upcoming rate increases. And if they decline you, they will also not tell you what other companies are an option for you based on your health. We can do all of those things and it costs nothing more for us to do it for you. We are licensed all across the country, so we can help you.

The advice on this website is informational. Please consult us before making a purchasing decision to determine what is best for your individual situation. You can contact a licensed agent at 888-228-6119 or by using the form on the right side of the page.

Keith Murray is an independent agent and the founder of Integrity Senior Solutions Inc. He has over 21 years of experience working with Seniors to meet their insurance and financial needs.

Finding the Best Medigap Plans

As I was driving in to the office this morning, I was thinking about how computers and the internet have changed the way we buy and sell insurance. When I first started the insurance business in 1996, we would go sit down with folks face to face. That was how people shopped for the best Medigap plans and coverage. I would have to flip through the rates of every carrier to see who had the best price for where they lived.

But with the advent of technology and computers, that has all changed. The days of you having to get dressed up and make sure the house is spiffy for a stranger to come in are behind us. You can work directly with an independent agent over an internet connection and/or phone wearing your bathrobe while sipping coffee if you want to! You don’t have to leave the house and you don’t have to let a stranger in.

Technology Has Made Things Better

I was thinking about what I miss about those days, though. I do love that we can help so many more people now. And we work all across the United States now. We are not limited by how far we are willing to drive to see someone face to face. But I do miss those times of seeing the look on a widow’s face when she realizes how much she just saved by changing Medigap companies without any change in coverage. I especially miss the times of getting a hug on the way out the door for having helped someone save so much! I love my “job” and that I get to make a living by genuinely helping people.

As an independent agency, Integrity Senior Solutions uses a software system that allows us to compare every available Medigap plan in your ZIP code side by side. Be sure to check the YouTube video at the bottom of this post for more information.

We can give you rate comparison information quickly and easily over the phone. We can also allow you to watch our computer screen as we share it to your computer or tablet screen in real time. You can see our screen, but we can’t see yours.

The Most Important Factor When Comparing Medicare Supplement Prices

Here is the biggest factor in comparing Medigap plans among the companies – each lettered plan offers the same exact coverage from company to company. A company cannot alter the coverage in any way. Here is the official Medicare comparison chart for Medigap plans:

The chart shows what each plan covers. Each company must adhere strictly to that coverage. A company can offer extras like a Silver Sneakers membership or discounts on eyewear. But the coverage for medical care and covering the gaps in Medicare Part A and B cannot vary one bit. Massachusetts, Minnesota, and Wisconsin have different standardized plans. Click here to see how those states differ.

A side note about Silver Sneakers – there are a couple of companies that do offer those memberships for “free” when you take their Medigap coverage. (Edit: There is now one Medicare supplement company that offers this additional benefit since AARP announced that they are dropping the program in most states nationwide) The problem is that those companies are usually $50-60 more per month than other companies for identical coverage. So it is not free. They are just rolling the cost of it into the premium in hopes that you will be enticed and drawn by their well-known brand name company.

It’s not worth it. Save on the premium and buy your own membership. Most gyms offer discount plans for adults age 60 and over. It will cost you way less than the difference in premium. Most gyms we have checked with offer memberships for anywhere from $8 – $22 per month for Seniors, and even less per person for a couple. Planet Fitness and Gold’s Gym both have $10 per month memberships. Don’t pay $60 more for your Medigap plan to get a brand name and membership that is worth less than $22.

Medicare Says You Should Compare Plans

Every year, the Center for Medicare and Medicaid Services puts out a publication about Medicare. It is called Medicare and You. Here is a page from a recent Medicare and You book. Notice in the middle it says in bold lettering, “Different insurance companies may charge different premiums for the same exact policy.”

We Have Done the Research For You

Weiss Ratings senior financial analyst Gavin Magor commented:

“For 20 years Medigap rates have varied due to regional differences in pricing methodologies, state regulations, and the cost of health care. While we expect these differences in pricing among plans and across regions, we find that there is no justification for such wide price differences for exactly the same product in the same area. Consumers who research their options are likely to find opportunities for significant cost savings when purchasing Medigap insurance.“

You can spend hours or days doing that research on your own. Or we can do a quick comparison of all of the companies side by side for you in minutes. Call us at 1-888-228-6119 for a free consultation and comparison. We work with people like you to compare all the plans every day.

Finding the Best Medigap Company

Many people go immediately to the big brand names for buying products. People – myself included – look for quality when shopping around. Cheap is not always better. But that is not as necessary in Medigap insurance. Let me explain why.

As we have covered here and in other articles, the Medigap plans are standardized. A Plan G from UnitedHealthcare is identical to a Plan G from Cigna or Mutual of Omaha, or any other company for that matter. There is no need to pay more to get a popular brand. One of those companies I just named spends millions and millions every year on TV ads, spokespersons, mass mailings, blimps – all kinds of advertising. And their high premium reflects their high advertising costs.

It is important to note that all Medigap plans are going to have potential increases in premiums from year to year. Any agent that tells you otherwise is lying to you. Run away from them. That’s why it is also important to know a company’s rate history. Some companies will close a book of business and start a new company to try to get fresh enrollees in their plans. The problem is that those old plans will still have people stuck in them and those rates will go up, up, up over time. We have seen which companies have pulled this questionable practice and can help you avoid getting caught in their trap the next time they do it.

Some companies will close a book of business and start a new company to try to get fresh enrollees in their plans. The problem is that those old plans will still have people stuck in them and those rates will go up, up, up over time. We have seen which companies have pulled this questionable practice and can help you avoid getting caught in their trap the next time they do it.

Cheaper is Not Always Better

As important as it is to stay away from the overpriced big brands, it is just as important to be wary of small companies or companies with low ratings. With the software that we use, we can see the rate increase history of every company. We also can see how long they have been in the market. And most importantly, we can see what their financial strength is.

Most of the time, we can find companies rated “A” by the rating companies that are in the top 3-4 in premium. In many cases, they will be the lowest on premium.

Having been in the Medigap business for over 29 years, I have seen small companies – especially “B” rated companies – come in with low-ball rates. Once those companies get some business on the books, they usually start raising the rates. Once you are outside of Open Enrollment or Guarantee Issue Periods for Medigap coverage, you will have to qualify medically to change Medigap plans.

Many times we have seen where someone took a cheap rate with a new, low-rated company to try to save a little, only to have that rate go up significantly once that smaller company sees they cannot maintain low rates and be profitable. If that person has developed any health issues, they might not qualify to move to a cheaper plan. So now they are stuck at whatever rate that company decides to go to. Their health could prevent them from taking advantage of a better price on their Medigap plan.

Call us at 1-888-228-6119 for your no-obligation quote and to have all your questions answered. You can also leave a question for us in the form to the right.