2012 Medigap Plans – What’s Available and How to Compare Options

The Medigap plans do not change on an annual basis. Contrary to popular belief, these plans are Federally-standardized and coverage does not change each year. Many people mistakenly believe that they do, simply because the Part D and Medicare Advantage change each year.

Medigap plans, on the contrary, are the same from year to year and there are no annual enrollment periods. Medigap premiums can change each year. Some companies choose to change the premiums at the first of the year, but most of the companies make changes to your premium on your policy anniversary date only.

Even though the Medigap plans do not change each year, that does not mean you should not make the effort to compare the plan options on an annual basis. Many people choose to do this at the end of the year, at the same time they are re-evaluating their Part D prescription drug coverage. This is highly advisable. Medigap premiums, as mentioned above, do change from time to time, and just like any kind of insurance, you should re-evaluate your options on an annual, or at the least, bi-annual basis.

Typically, if your rate goes up, as many companies are known to do each year, you can save money for equal coverage from another company. Now, many people don’t like to switch to save $5/month. But, in most cases, the savings are greater than that, and changing Medigap plans is very easy to do.

When you change from one company to another, you simply apply for the new plan for a future effective date. It generally takes about 7-10 business days to be approved. Then at that point, you can cancel your old coverage effective the same date. Every day, we have clients who find equal coverage (i.e. one Plan ‘F’ is the exact same as another, etc.) for hundreds (sometimes thousands) less per year.

So how do you find out what the premiums are for the Medigap options in your area? Well, there are two choices. The less desirable of the choices is to get our your phone and start dialing the insurance companies to see if they offer plans in your area and find out what their rates are. Most will require a face-to-face meeting to discuss their plan and in order to obtain the rates. The way we suggest doing it, regardless of whether it’s through us or another agency, is to compare rates using an independent brokerage. Brokers can provide information on all of the companies available in your area, so that you can compare in an unbiased, centralized place.

To get more information or Medicare Supplement quotes, please visit our website or call us at 877.506.3378.

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