There is an “alphabet soup” that accompanies Medicare and Medigap plans. For those that are new to Medicare, this can be overwhelming at worst, or simply confusing at best. Medicare has “parts” – i.e. A, B, C and D – and Medigap “plans” are also named for letters – A through N (there are only 10 plans currently as some have been discontinued through the years). This confusion between the “parts” of Medicare and the Medigap “plans” is something that I see every day in talking to people on Medicare.
It is essential, though, to understand the different terminology and understand what the letters mean when you are comparing Medigap plans. There are a total of 10 plans and they are all named by letters. If your plan is not named by a letter, then you don’t have a Medicare Supplement/Medigap plan – you probably have a Medicare Advantage plan. This is a different type of plan that replaces Medicare completely – it is a privatized version of Medicare – these plans are not standardized, and on the contrary, vary greatly from one to the other.
When you are comparing Medigap plans, you should first and foremost, understand what the plans cover. The cost of the plans is really a secondary thing to look at, since deciding which plan you want dictates which companies on which you should compare rates. Once you know which plan you want (i.e. Plan F or G or N or others), you can easily compare rates specifically for that plan. The company with the lowest rates will provide the best option since coverage is standardized, although I would also consider a company that is slightly higher in rates if they are rated more highly in financial strength.
Comparing Medigap plans can be very difficult to do, but it doesn’t have to be. Put simply, it is not nearly as difficult as most people make it. Since coverage is standardized, simply pick the plan you want, compare the rates and choose one of the lowest priced 2-3 companies.
If you have questions or want to compare Medicare supplement quotes for yourself, contact us at our website or call 877.506.3378.