How to purchase Medigap insurance?

It's kind of funny how most people throughout their whole life have an HR director telling them what their options are for insurance benefits. Then when you turn 65 and begin a whole new type of health insurance, you are expected to know How to Purchase Medigap Insurance!

Most likely you are used to having one option through your employer and here is the premium you will be required to pay take it or leave it. Well Medigap Insurance is not the same. Medigap Insurance is a supplemental insurance plan that fills in the gaps of Original Medicare (Parts A & B). In other words, once you have Medicare there are deductibles, coinsurance and co-pays that you are responsible for - Medigap plans covers these expenses.

Purchase Medigap Insurance

Why should you purchase Medigap insurance? That is a good question and here is how I answer that question:

  • Do you have 80/20 insurance on your home?
  • Do you have 80/20 insurance on your car?
  • Are you comfortable with an unfunded liability?

If your answer to these questions was YES - you need a Medicare Advantage Plan. If your answer was NO I would recommend you purchase Medigap insurance. It is paying Russian Roulette with your healthcare not to have some type of cap on your health insurance costs. Medicare alone does not have a cap on your maximum out of pocket, it is up to you to find a Medigap Plan that fits your needs.

Purchase Medigap Plans: F, G, or N

I am personally a fan of the following Medigap plans and the reasoning is below as well:

  • Plan F - most comprehensive coverage available, no deductibles, no coinsurance, and no co-payments. Any doctor/hospital in the country that accepts Medicare.
  • Plan G - no different from the Plan F other than the Part B deductible ($147 in 2013). Usually will be 10% less expensive.
  • Plan N - $20 co-payment per doctors visit, Part B deductible, and 15% excess charge liability. Again all doctors/hospitals that accept Medicare. Usually 20% -25% less expensive. The only negative to the Plan N is the excess charges. Normally I do not see doctors charge this but there is always that option and an excessive procedure could leave you with a larger than expected cost.

Medicare Supplement/Medigap Plans

Standardized 2013 Medigap Plans

To learn more about Medigap insurance call our office at 877-759-5760. We have a Medicare Supplement Quote Engine that looks up rates all over the country in less than 2 minutes with over 25 insurance companies.