What to look for when shopping for the best Medicare Supplemental Insurance plans.
Shopping around for the right Medicare supplemental insurance plans (Medigap Plans) is a smart move before ever making a decision to buy. Knowing before hand what you want in the way of coverage is also prudent.
Standard Medigap plans must cover basic benefits. Plans A through G cover one set of those benefits, and Plans K, L, M, and N cover another set of basic benefits. This is governed by the federal government. All the plans now cover preventive medical care. Plans A through L offer Medicare Part A hospital benefits, including the extended 365 hospital days. With Medicare Part B, plans A through J are again, all the same for co-insurance payments.
Although the Medigap plans have to give you the same coverage, regardless of which insurance company sells them, the price you pay will be different. This is the main reason you must compare prices. For example, if you are looking at Plan A with Company XYZ, the coverage will be the same for Plan A at Company ABC. The price for the premium you pay may be different.
There are three ways to price Medicare Supplemental Insurance plans. The first is called the Community Plan. Everyone pays the same price, regardless of age. The second plan is called the Issue Plan. Premiums are based on your age when the policy is issued. With both of these plans, the premium will remain the same as you age. Finally, the Attained-Age plan has premiums based on your age when purchased, then they go up with age.