Medicare Supplements, also known as Medigap plans, provide great extra coverage for Medicare beneficiaries. But there is no one-size-fits-all Medicare Supplement.
You have to be careful when shopping for Medigap plans to be sure you purchase the best plan for your unique situation. We’re going to go through the top 5 mistakes people make when purchasing Medigap plans and how to avoid them.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
Top 5 Medigap Mistakes
1. Buying a plan because your spouse, a sibling, or a friend has it and likes it without doing research or comparison shopping.
I know the mail and phone calls from insurance companies are overwhelming in the months before you turn 65, but don’t let that discourage you from doing the research to find the best plan for you.
Everyone’s Medicare Supplement coverage needs are different. Just because a plan works well for someone you know that doesn’t mean it’s necessarily the best option for you. They probably take different medications, see different doctors, live in a different zip code, and have different health concerns.
All of those, plus other factors, should be taken into account when finding the best plan for you. Also, if the person recommending the plan didn’t do much research before enrolling in that plan, they may be paying more than they need to, and by following their recommendation, you will be too.
2. Buying directly from an insurance company.
For some types of insurance, it makes sense to comparison shop online and then buy direct from the insurance company with the best rates.
This isn’t the case with Medicare Supplements.
Medicare Supplement coverage is standardized. That means if you purchase a Plan G, for example, from any company in the state, it will have exactly the same coverage and pay claims exactly the same way as every other Plan G.
The difference is in the rates you pay every month, the underwriting questions you may have to answer to be approved if you are past the first 6 months on Medicare Part B, and the rate increases, which usually happen once a year.
If you buy direct from the insurance company, they are not going to tell you that another insurance company actually looks like a better option for your needs or point you to some other insurance company when their rates go up.
Independent agents and brokers, who contract with many different companies can comparison shop with you and help you find the company and plan that best fits your needs at the best price.
When rates go up, your independent broker can go through all the options with you again, looking at multiple companies to find a plan that avoids, or at least lessens, the rate increase.
There is no cost difference to you in monthly premiums whether you purchase directly from an insurance company or through an independent agent or broker.
3. Buying the cheapest plan available.
Part of comparison shopping is looking beyond the price to the company’s financial strength and stability.
Looking at the insurance company’s history of rate increases doesn’t predict future increases, but if there is a pattern of a company coming into a state with very low rates and then having large rate increases a few years later, that low rate may not be such a good deal in the long run.
4. Giving in to pushy salespeople.
Like I mentioned earlier, you get a ton of mail and phone calls in the months before turning 65. Unfortunately, some call centers badger people constantly and use scare tactics to try to get sales.
You should never feel pressured to buy something.
If the person calling you is only available for the initial sale and not to help you in future years when rates go up and plans change, you’re purchasing through a salesperson, not a broker who’s going to be around and available to help you for years to come.
5. Missing your Medicare Supplement Open Enrollment Period.
During your first 6 months on Medicare Part B, you can purchase any Medicare Supplement plan sold in your state without having to answer health questions and without possibly being declined due to your health status.
If you miss that 6 month window, your options to purchase a Medicare Supplement will be far more limited if you have chronic or serious health issues.
If you have questions about finding the right Medicare Supplement for you, please feel free to contact our office at 877-312-1414 or schedule a free, no obligation Medicare Plan Consultation. We’re happy to help you make sure you select the best plan for you!
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