Medicare.com eNewsletter

Enter your e-mail address below to receive the latest news about Medicare coverage and plans

Medicare supplement insurance plans are available to fill the gaps in Original Medicare coverage. A private health insurance comparison can help determine which of the 11 current plans are best for you. A number of private health insurance providers offer such coverage, and while all the insurance plans are standardized and must be identical, there is nothing to prevent divergent pricing.

Your Medigap comparison should, however, be about more than just Medigap rates. The rates matter, but the performance of the company is equally important. One way you can check is to contact others you know and trust who have Medigap insurance plans; friends, family and others. You should also be sure to compare Original Medicare plus Medigap coverage to Medicare Advantage plans and other options.

What the given Medigap insurance plans offer is as significant as the cost. The price and services should be weighed with each other to make your Medigap coverage decision. Currently, there are eleven insurance plans, signified by letters that you can purchase. There are other discontinued, insurance plans that you can continue if you purchased them before June 1, 2010.

There are various pieces of Medigap insurance insurance plans that are uniform. They cover Part A Hospital costs at a maximum of 365 more days after Medicare hospital costs are used up. The same is true of coverage for; the first three pints of blood you use in the hospital, Part A hospice care coinsurance and copayments. 

Some of the insurance plans cover Skilled Nursing Facility care coinsurance. Some may cover the deductible for Medicare Part A. Even fewer cover the Medicare Part B deductible. Medicare Part B Excess Charges are likewise only covered by two of the available insurance plans.

Foreign Travel Emergencies are covered by six different insurance plans. These should be considered by people who travel extensively. Medicare doesn’t offer extensive service outside the USA and its territories.

You need to ask yourself which of the services you need covered most and then you need to compare costs between the insurance plans, between the different insurance companies offering the insurance plans and with other insurance plans where you can get coverage (including but not limited to Medicare Advantage Plans). Be aware that some insurance companies may not offer each of the individual insurance plans listed.

There are a number of issues that can help you determine which insurance plan is best for you. How much can you afford to pay in monthly premiums for a Medigap insurance plan? Once you decide on an insurance plan compare the cost with other companies and insurance plans. Think hard about the benefits you actually need. There is no reason to pay for benefits you are unlikely to use. For instance, if you do not travel why get the Foreign Travel Emergency coverage? Is filing a claim for the insurance plan or with the insurer difficult? Do you have to file the claim or can your doctor do it on your behalf? 

Also pay close attention to how your Medigap premiums are set. How the prices are set can determine not only how much you pay now but how much you may wind up paying in the future. There are three ways to determine what your payment will be.

• Community-rated or no-age rated refers to a policy that is priced the same, regardless of age. The price may still go up for factors such as inflation and other issues but never for your age.
• Issue-age rated policies are lower priced if you buy at a younger age. You are charged the same as others in your area that are the same age. Premiums can go up but, again, not because of your age. Basically the younger you are when you get the insurance plan the cheaper it is and will remain.
• Attained–age rated insurance plans are cheaper to begin but they go up as you age. They can also go up for inflation and other reasons.

Insurance plans, like other products, are influenced by inflation and rising health costs. Consequently your rate may increase over time. Some companies may increase rates more rapidly than others. Comparing rates for the insurance plans requires that you compare the identically lettered insurance plans among the different insurance companies who offer those insurance plans. Consider how the insurance plans initial prices are determined.

There are some other cost issues that might be worth looking into. If you are married will the insurance company offer a discount if you and your spouse sign up? Do they offer other discounts?
You may also want to check to see if Medicare SELECT policies are offered in your area. They are not offered everywhere but they are a Medigap policy that requires you to use certain hospitals and, occasionally, doctors. These insurance plans can be cheaper. Find out if high deductible insurance plans are offered in your area if these insurance plans appeal to you. The premiums may be lower since you pay the first $2000 yourself (in 2010, it may increase in subsequent years).

The main factors in determining if a Medigap insurance plan is the one for you are the benefits offered (and will you use them), how much the insurance plan costs, and what other options are available. Compare and determine which, if any, of the insurance plans most suit your needs and your finances.