2 things to know about comparing Medigap quotes:
- Prices for the same standardized Medigap plan will be different from different insurers.
- You should review the following 5 factors when comparing Medigap quotes: benefits, plan type, insurance company, age-related pricing structure, and price.
Comparing Medicare Supplement insurance (Medigap) health insurance rates 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 comparing Medigap plans, and request a free quote today.
Step 1: Choose which Medigap benefits you want
The first step in comparing Medigap plans is deciding which costs you need your Medigap policy to cover. Medicare Supplement insurance plan options include up to 9 basic 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.
Learn more about the basic benefits that Medicare Supplement insurance plans cover.
Step 2: Choose the best Medicare Supplement Insurance plan
The second step of the Medigap 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 type of Medicare Supplement Insurance plan has different benefits, ranging from the lower coverage option such as Plan A to the higher coverage options such as Plan F and Plan G.
Compare the basic benefits of each type of Medigap plan.
Step 3: Get Medigap plan 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: Comparing your Medigap quotes
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:
- Attained-age pricing
- Community-rated pricing
- Issue-age pricing
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.
After comparing Medigap quotes and finding an insurance company that offers your desired Medigap plan, you can move on to the final step, which is purchasing a policy.
Step 5: Purchasing a Medigap Policy
After deciding on a plan type and insurance company, it is time to buy a Medigap policy.