Whether you are new to Medicare and selecting coverage for the first time or shopping to save money on your current coverage, this guide will help you understand your options and most importantly SAVE MONEY!
Step 1: All Plan Types Are Created Equal!
With so many options available for Medicare Supplement Plans (also known as Medigap plans) it can often times feel like a burden simply trying to choose the right one. Luckily when Medicare Supplement plans were originally designed they made it EASY for us to compare what companies were offering.
Campbell’s soup is Campbell’s Soup
Just like the same can of soup bought at different prices from Walmart, Target, or your neighborhood grocery store… the EXACT SAME Medicare supplement plan will differ in price depending on which insurance company you select. This means your Medicare Supplement plan will provide the exact same benefits with the exact same doctors no matter which company you select or how much you pay!
Page 19 of the Medigap Buyers Guide Published by CMS clearly outlines that all insurance companies must offer the exact same coverage for each plan while premiums are likely to vary significantly.
Step 2: Get the Most Bang For Your Buck!
For many years Plan F has been the most commonly purchased Medigap plan in the market. For those of you who are not familiar with Plan F, it essentially covers 100% of all copay’s, deductibles, and coinsurance that you would typically pay out of pocket if you had Original Medicare alone. This means if you have Medigap Plan F all Medicare covered services are 100% covered, all you pay is your monthly premiums.
Plan G: The Smart Buy
After years of working in the Medicare industry I highly recommend that all of my clients consider Plan G! Plan G is absolutely identical to Plan F except for only one small difference… an annual deductible of $166. Simply put, in addition to your monthly premiums you would pay the small deductible of $166 at the start of each year and then you get the same great 100% coverage that Plan F provides.
Visit the Medicare Supplement Section of our website to learn more about Plan F and Plan G
Why I highly recommend Plan G:
It really quite simple, you will save an average of $300 in premiums your very first year and save even more in the future with Plan G’s low rate increase history.
First Year Savings: My clients save an average of $300 in premiums their very first year on Plan G vs Plan F. This means even after they pay the $166 deductible they are still saving $134!
Future Rate Increases: Historically Plan F premiums go up about TWICE as fast as Plan G. A few of the factors that help keep Plan G rate increases down include the following:
The Deductible: Having to pay the first $166 out of pocket each year helps to incentivize people to better manage their health and has proved over time to reduce claims and therefor lower the rate increases needed by insurance companies.
Health Underwriting: There are no less then 20 different special exceptions that allow someone to obtain Plan F with no Health Questions. Plan G on the other hand has only ONE way to get coverage with out answering health questions, which is during open enrollment period when you are new to Medicare for the first time. This means Plan G typically has a healthier group of people enrolled in the the plan as a whole, leading to lower claims and therefor lower rate increases.
Medicare changes in 2020: As of the year 2020 Plans F, C, and high deductible F will no longer be sold to new Medicare Applicants. This means only those who are 65 or are otherwise eligible for medicare on or prior to December 31st 2019 will be able to purchase Plan F from that point on. It has been well documented in the past that significant rate increases begin to occur when a Medicare supplement plan is no longer able to offset its current aging population with new, young, and typically healthier individuals. Although it will build over time after these changes take effect, we can expect to see significant rate increases in Plan F after the 2020 changes take effect.
Real Life Examples:
(New To Medicare)
Zip Code: 75075
Plan F Premium: $133.64
Plan G Premium: $106.21
Annual Savings: $329.16
Savings Even if Deductible is Paid: $163.16 Per Year
(Switched from Plan F to Plan G)
Zip Code: 75034
Old Plan F Premium: $241.23
New Plan G Premium: $132.50
Annual Savings: $1,304.76
Savings Even if Deductible is Paid: $1,138.76 Per Year
Click Here To Learn More About Plan F vs Plan G
Step 3: Go Shopping!
There are literally hundreds of companies that offer Medicare Supplement plans! Some of these are name brand insurance companies that you are bound to know and may even currently have coverage with while others you may have never heard of before. Some of the most popular Medicare Supplement insurers include: Aetna, Humana, AARP United Healthcare, Mutual of Omaha, Cigna, Gerber, Blue Cross Blue Shield (BCBS), Transamerica, Manhatten Life, New Era Life, United Home World, Medico, Equitable, and many more.
How Pricing Works For Those Who Are New To Medicare:
Rates for your Medicare Supplement Plan will be based on your Age, Gender, Location, And in some states whether you use tobacco products. Simply entering this information into our comparison software will tell us exactly which company will be the most affordable for you! It can’t get easier then that!
How Pricing Works For Those On Medicare and Looking to Switch Plans:
In addition to Age, Gender, Location, and Tobacco Use, those individuals outside of their open enrollment period will also have to answer a few basic health questions in order qualify for new coverage.
Most companies typically ask about 10 yes or no health questions and for those with health concerns it is important to note that each insurance company has different conditions it will accept. We are often even able to find coverage for those who have been declined before by a different company!
At Medicare Hero we know each person is unique so please let us know with any personal questions you may have or give us a call to start shopping for your Medicare Supplement coverage!