2014 Medigap plans will be the same, coverage-wise, as 2013 Medigap plans. With Medigap, coverage is Federally-standardized and all plans go by the Medigap coverage chart. This has been changed in recent years – effective June 1, 2010 – but since that point there have been no changes to the coverage chart. The Federal government – CMS, really – is the one that sets forth this chart and determines what Medigap plans will cover. Although the prices for the plans from different companies can vary considerably, this ensures that the coverage is the same for “like” plans. In other words, a Plan F with one company is the same as a Plan F with another.
So, although the coverage on the 2014 Medigap plans is the same as the 2013 plans, there are other factors to consider. First of all, many people mistakenly think that there is an annual enrollment period for Medigap plans – this is not the case. The annual enrollment period that runs October 15-December 7 is actually for the Part D Rx plans and the Medicare Advantage plans, which take the place of Medicare. For Medigap plans, you can sign up for, leave, or change plans at any time of the year.
As far as companies and rates go, there are always changes going on with Medigap. Over the past year or two, there have been several new companies to enter the marketplace, including CIGNA, AFLAC, Stonebridge Life, and Central States Indemnity, that have very competitive rates in many states and are striving to become market leaders due to price competitiveness and financial stability.
Just like there is not an annual enrollment period for the plans, Medigap rates do not change with the calendar year necessarily. So while your Medigap company may change rates 1/1/14, it is more common that your plan will change rates on your policy anniversary date.
Moving into 2014, it looks like the aforementioned companies, as well as some old “stand-bys”, such as Mutual of Omaha, AARP/United Healthcare, Aetna, etc will continue to be prominent players in the national Medigap market. The rates, of course, depend on what state you are in, your age, gender, and sometimes, other factors. So, it is important, if you are comparing plans, to get an accurate depiction of what is available in your area and what the actual rates would be.
Medicare-Supplement.US is a leading, independent Medigap brokerage that works with 35+ companies in 39 states. If you want a comparison for your specific situation, contact us online or call us at 877.506.3378.