5 Key Facts About Medicare Supplements

Almost all of our clients have a Medicare Supplement – they’re a great way to fill in the gaps of Original Medicare. But there are a lot of misunderstandings when it comes to these supplemental insurance policies.

Whether you’re researching in preparation for turning 65 or feel like you don’t fully understand your existing Medigap coverage, here are 5 key facts to know.

1. All Medicare Supplements plan benefits are standardized by the government.

If there’s one Medicare Supplement fact you NEED to know above everything else, this is it.

There are many different Medicare Supplement plan types, which are organized by letters. The most popular plan type currently is Plan G.

No matter which Illinois county you live in or which insurance company you buy from, a Plan G is a Plan G is a Plan G.

Plan G benefits are standardized by the government, so your benefits are exactly the same – regardless of which company you get your Plan G from.

This information is power! You have the power to price shop from all the available Medicare Supplement carriers on the market.  

Sure, there are other factors like brand name and potential rate increase histories, but in general, you should get your Medicare Supplement plan from the company with the most competitive premium.

Our licensed agents have quote engines they utilize to find you the most competitive rate every time.

2. You’ll pay the same premium, whether you use an agent or not.

Medicare Supplement rates are the same, whether you buy directly from the insurance company or go through an agent. You should always go through an agent, as an agent will price shop the entire market and find you the company offering the lowest premium.

An insurance company will never send you to their competitor who has a lower premium, which is why it pays to work with a licensed sales agent.

Read More: Why You Want Your Insurance Agent to Be a Broker, Not Captive

An agent also provides extra service you won’t get from an insurance company. Forget about 800 numbers and robotic voice systems. Your agent will work you one-on-one and is always there to answer questions and help when tricky situations arise.

Many of the agents here at Sams/Hockaday give out their cell phone numbers to clients – that’s how dedicated we are to service.

If you’re worried about slick sales pitches from an agent, you also won’t get that here at Sams/Hockaday. Most of our agents utilize a needs assessment to determine where you have coverage gaps. From there, we provide policy options and recommendations, but it is entirely up to you if you want to follow our recommendations.

There is never any pressure or obligation to buy insurance from us.

3. Medicare Supplement coverage is extremely comprehensive.

Clients often don’t realize just how comprehensive Medicare Supplement insurance is until they have a major health crisis.

Plan G is currently the most popular Medicare Supplement plan. Under this plan, you could get a cancer diagnosis and face hospital stays, radiation, and chemotherapy.

Your total costs for medical care under a Medicare Supplement would be less than $250 for the year (as of 2022). Your medical bills could be hundreds of thousands of dollars, and your bill would be just $233, for your Part B deductible, in 2022.

We’ve had clients call us, panicked and terrified by a new health diagnosis. They ask, “How much is this going to cost me?”  

They are absolutely thrilled and relieved to find out that in almost all cases, their costs are going to be less than $250.

The incredible coverage is just one of the many reasons we highly recommend Medicare Supplement plans.

Case Study: How Medigap insurance helped Jerry and his wife after a cancer diagnosis

4. Medicare Supplements don’t come with provider networks.

If you’ve ever had an employer group health plan, you’re probably used to finding doctors within a provider network. And if you’ve ever gotten care outside of your network, you may also be familiar with higher prices because of it.

With Medicare Supplements, you don’t have to worry about provider networks. Your only concern is making sure your provider accepts Medicare. Nearly all providers accept Medicare (current estimates are between 93-97%).

Plus, if a doctor doesn’t accept Medicare, which is very rare, they are required to inform you. You even have to sign some paperwork acknowledging that your provider doesn’t accept Medicare.

This frees up many of our clients, especially those who are snowbirds. You can get coverage anywhere in the country, from almost all providers, without having to worry about networks.

5. Medicare Supplement premiums go up over time.

One of the unpleasant facts about Medicare Supplements is premiums go up over time. You can expect anywhere from 0-2 rate increases per year, though many carriers will deliver your rate increase on your birthday. It’s a cruel birthday present, we know!

The good news is as long as you can health qualify, you’re allowed to switch Medicare Supplement carriers. Over time, new carriers will come out with better rates, and you can make a switch to save some serious cash.

Related: A peek behind the curtain of Medicare Supplement insurance rates

Our team here at Sams/Hockaday continually monitors Medicare Supplement rates to ensure you aren’t overpaying. We also meet with our clients for an annual review to shop the market and see if we can save you money on your premiums.

If you cannot health qualify down the road, and your rate is getting too high, we can also consider alternative options, such as Medicare Advantage or a Medicare Medical Savings Account (MSA) plan.

Conclusion

Medicare Supplement coverage is popular in central Illinois for a reason!  

From the standardized plan benefits to no networks, it’s a plan most individuals can get behind.

To get Medicare Supplement quotes, please schedule an appointment! You can call our office at 217-423-8000 or use our online scheduling system.