Medigap plans can be a very important part of any sound financial plan, if you are over 65. Choosing the right Medigap plan in 2012 is easy to do if you are savvy enough to compare plans in an unbiased way and make the wise choice.
Here are the top 10 things to remember about Medigap plans in the new year:
- Standardization. The plans are completely standardized. Coverage and claim payments are the same from one company to the next. Rates and company rating are the most important thing.
- Flexibility. With Medigap plans, you can go to any doctor or hospital nationwide that takes Medicare. There are no networks or restrictions on where you can go.
- There is no annual enrollment period for Medigap plans. You can compare and change plans at any time of year. The annual enrollment period only applies to Part D and Medicare Advantage plans.
- Medicare Advantage plans are NOT Medicare Supplements. Many people mistakenly lump these all together; however, Advantage plans do not “supplement” Medicare – they replace it.
- A brokerage can help you compare all of the available plans in an unbiased way. There are many ways to compare Medigap plans, but using an independent brokerage allows the best overall comparison.
- There are some discounts available for: paying by bank draft, applying with a spouse, and (in some cases) being healthy/non-smoker.
- Medigap plans are guaranteed renewable. They never end unless you cancel them or do not pay.
- If you are in open enrollment or guaranteed issue, there are no underwriting requirements for Medigap plans.
- Medigap plan rates can vary greatly by age, zip code, gender, tobacco usage, etc.
- Plan F is the most comprehensive plan but it is not always (not usually) the most cost-effective. There are several lower-tier plans that provide almost-equal coverage at a significantly lower cost. Medigap Plan G is a great alternative to Plan F.
If you have any questions about Medigap plans or wish to compare the plans further, you can reach us at 877.506.3378 or contact us online at Medicare-Supplement.US.