2 things to know about comparing Medigap quotes:
- Prices for the same standardized plan will be different from different insurers.
- You should review the following 5 factors during the comparison process: benefits, plan type, insurance company, age-related pricing structure, and price.
Comparison shopping for Medicare Supplement insurance is important to ensure that you get the benefits you need at the best price available.
Even though Medigap plans are standardized, prices vary from insurer to insurer. You need to first decide which benefits you want and which particular plan options provide those benefits. After receiving several quotes from different insurers, you can compare plans based on price and eventually buy a policy. Continue reading for a step-by-step guide to the comparison shopping process.
Step 1: Choose which benefits you want
The first step in the comparison process is deciding which costs you need your Medigap policy to cover. Medicare Supplement insurance plan options include up to 9 benefits that cover out-of-pocket costs not covered by Original Medicare. All plans provide the same 4 basic benefits, and there are 5 additional benefits included in only some plan options. You need to decide which optional benefits you want so that you can choose the best plan for you.
For more information on what Medicare Supplement insurance plans cover, read our benefits page.
Step 2: Choose the best plan option
The second step of the comparison process is deciding which Medigap plan option is best for you. After deciding which benefits you want, you should match up the required benefits with the plan option that offers all of them.
There are 10 different standardized Medigap plan options currently available in most states. (Massachusetts, Minnesota, and Wisconsin have different options.) Each has different benefits, ranging in options from the low-coverage Plan A to the high-coverage Plan F.
For more information on Medigap plan options, read our plans page.
Step 3: Get quotes
Once you decide on a specific Medigap plan, you can begin the quote process.
You can go from company to company getting quotes or jumpstart the process by using a comparison site such as MedicareSupplement.com.
During this process, you’ll need to give some information to get your quotes. Insurers use information such as location and age to determine which plans are available in your state. For more information, read our article on how Medigap plans are priced.
Step 4: Review your options
After receiving several quotes, the final factor to review is price. Price is the only difference between one insurance company’s Plan A and another insurance company’s Plan A. It’s important to compare prices for the same standardized plan option to find out which insurance company is truly cheaper.
Keep in mind the premiums may increase in future years depending on the policy’s age-related pricing structure. Before you choose a policy, you should know exactly how pricing will change as you age. There are three age-related pricing structures used by Medigap insurers: 1) attained-age pricing 2) community-rated pricing and 3) issue-age pricing. For more information, read our article on how Medigap plans are priced.
Note: If you get quotes for Plan F, make sure to note which quotes are for regular Plan F and which are for the high-deductible Plan F.
Once you find an insurance company for your desired Medigap plan, you can move on to the final step, which is purchasing a policy.
Step 5: Purchasing a Policy
After deciding on a plan type and insurance company, it is time to buy a policy. Read our page on buying a policy for more information.