I recently was a question from a man named Ron, and he asked, “what’s the deal with the wide range in prices? And is the most expensive plan the best one?”
This is an excellent question because many people assume that the most expensive plan is the best one for them. Based on what I have seen, that’s not usually the case.
In this blog post, I want to walk you through why there’s a wide range of prices for Medicare plans, and why the most expensive or even the cheapest isn’t usually best. I think by understanding this, you can avoid making some significant mistakes.
As most of you know, Medicare Part B has a standard rate of $144.60 a month. If you have a higher income, you could have to pay more for Part B.
With that said, there are Medicare Advantage (Part C) plans out there with a wide range of prices. There are also Medicare supplement plans (Medigap) out there with a wide range of prices and Medicare Part D drug plans.
The reason why these prices vary, it’s for really two reasons.
Medicare Advantage, Medicare Supplement, and Medicare Part D all cover different things.
There are many parts to Medicare, which is why their price varies. You really can’t compare the price of a Medicare Advantage plan with the cost of the Medicare supplement plan because they’re entirely different things.
With that said, when it comes to Medicare supplement plans, sometimes the most expensive plans are not the best ones.
Different insurance companies charge different amounts for the same plan.
The reason this happens isn’t that one plan is better than the other plan necessarily, but it can be around how they manage their company, how big or how much overhead they have, and how all those things work will impact how the company prices, their plans.
That means just because Company X is more expensive, does not mean they’re necessarily a better plan.
Some additional reasons for different prices in plans could be that a plan is outdated, or the company offering that plan just had a lot of overhead costs, which increased your expenses.
You want to make sure that you’re picking a plan that is best for you and whether it is the most expensive or the least. It’s critical to make the right decision the first time because insurability rules may not provide you with another chance to switch down the road.
To easily make the right Medicare decision you can CLICK HERE to sign up for our Medicare Enrollment Concierge.
