CIGNA Medicare Supplements – A New Option for Medigap Plans

CIGNA Medicare Supplements are a new option on the Medigap
plan landscape. Currently, CIGNA’s plans, sold CIGNA Medicare Supplementsunder the name American Retirement Life Insurance Company (ARLIC), are approved for sale in 39 states. Where they are offered, they have been a well-priced, stable alternative to some of the existing options in the Medigap sphere.

Medigap plans are Federally-standardized. That is, the coverage is the same regardless of which company sells you the plan. To see the standardized plans chart, visit this link. For example, a Plan F with CIGNA (ARLIC) would be the same as a Plan F through AARP, Blue Cross Blue Shield, Mutual of Omaha, Aetna or any of the other companies that offer Medigap plans. In addition to coverage being standardized, claim payments are also uniform from one company to the next. Claims are processed through the Medicare “crossover” system, meaning that the provider and Medicare handle claim payments electronically and on a set-by-Medicare timetable that doesn’t vary from one company to the next. Lastly, doctor acceptance of Medigap plans is not a factor, as doctors that take Medicare are required to accept the standardized Medigap plans, regardless of which company sold you the plan.

With all this in mind, it is crucial to look at premium rates and company rating when comparing Medigap plans. These are the two primary factors, and really, the only things that will vary from one company to the next. CIGNA Medigap plans have an ‘A’ A.M. Best rating and have consistently been priced competitively in the areas in which they are offered.

In most of their markets, CIGNA offers Plans F, G and N. While Plan F is the most comprehensive and common plan, Plan G is sometimes a better “deal”. The only difference between ‘G’ and ‘F’ is the coverage of the Medicare Part B deductible ($147/year for 2013). Otherwise, the two plans are identical. Often, the premium savings on Plan G more than offsets that deductible amount.

One major obstacle to many people changing plans is the simple misunderstanding about when changes can be made. As we’ve addressed previously, this misconception, which is perpetuated by the annual enrollment period (the only time that you can change Part D coverage but has nothing to do with Medigap plans), causes many people to feel “locked in” to their plans for the year even if that plan has mid-year rate increases as many companies do. On the contrary, you can change Medigap plans at any time, and when your rates go up, particularly if it is a significant increases, it is advisable to at least compare what else is available to you.

Medicare-Supplement.US is an independent agency that provides Medigap comparisons by email. These comparisons can include CIGNA, where available, as well as other competitive companies in your marketplace. To request a Medicare supplement comparison and Medigap quotes, simply fill out this form. If you prefer to speak to someone directly and by phone, you can reach us at 877.506.3378.

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