Medicare supplements, also known as Medigap, are an increasingly popular plan choice among Medicare beneficiaries. Nearly 34% of Medicare beneficiaries (11 million beneficiaries) are enrolled in a Medicare supplement. These are so incredibly popular because these supplements cover Medicare out-of-pocket costs. You can apply for Medicare supplement policies at any time. However, you might be subjected to going through medical underwriting.
You might be wondering who the best Medicare supplement company is to purchase a Medigap plan through. You can visit this article, boomerbenefits.com/top-10-medicare-supplement-companies, for the top ten Medicare Supplement companies in 2022. There are lots of questions that arise when learning about supplement plans. We’ve compiled five facts about Medicare supplement companies that you should know in this article.
Fact #1: When You Should Apply for Medigap with a Supplement Company
When you purchase a Medicare supplement plan, you can apply anytime. However, the best time to apply is when you first become eligible, so you don’t have to undergo a medical underwriting. Medical underwriting is when companies ask you medical health questions and could deny you or rate you up based on your health conditions. The Medicare supplement Open Enrollment Period begins when you enroll in Part B. It is a 6-month window from your Part B effective date. You can buy a Medigap plan from any insurance company licensed in your state during this period.
Fact #2: Medicare Supplement Companies Must Have their Plans Standardized
Medigap plans are standardized. What does that mean for you? Each plan must offer you the same basic benefits, no matter which insurance company sells it. The cost, however, can be different amongst the insurance companies. There are monthly premiums with a Medigap plan. There are also three ways to price: community-rated, issue-age-rated, and attained-age-rated. The cost differences between the companies can be huge, so comparing costs before enrolling with a supplement company is wise.
Fact#3: Medigap Plans Don’t Cover Vision, Dental, or Hearing
Medigap plans don’t cover routine dental or vision services, eyeglasses, or hearing aids. If you’d like these things to be covered, you will need additional insurance coverage. You, however, cannot get that coverage through a Medicare Advantage plan if you are enrolled in a Medigap plan. You would want to enroll in a standalone policy for those benefits.
Fact #4: Medicare Supplement Companies Cannot Drop Your Plan
You won’t have to worry about getting dropped from your plan if you suddenly get a health problem. Medigap plans are guaranteed renewable; you can check this with the supplement company you’re interested in choosing.
The company can only drop you from your plan under limited circumstances. If you stop paying the premium, the company goes bankrupt, or you didn’t tell the truth on the policy application. If the company were to go bankrupt, you would be given a guaranteed issued right to purchase a new plan. During this period of your guaranteed issue right, Medicare supplement companies can’t use medical underwriting to deny your application or even charge you more.
Fact #5: It Pays to Shop Around
When it comes to purchasing a Medigap plan, you will want to shop around to make sure you are getting the best deal. Although companies sell the same policy, they may charge differently for it. A Plan G from one company may have a different premium than a Plan G from another company. Get quotes from several other supplement companies and compare them at the end.
Conclusion
Medicare supplements are an increasingly popular plan choice for Medicare beneficiaries as 34% of Medicare beneficiaries are enrolled in a Medicare supplement. When you first purchase a Medicare supplement plan, the best time to apply is when you’re first eligible. Make sure you shop around and find the best price for the best policy!
