If you’re choosing Original Medicare as your Medicare program, I always recommend choosing a Medigap plan as well, but what letter do you choose? There are ten letters, and figuring out which one can cause some headaches…
Let’s breakdown what you need to look for when choosing a Medigap letter.
Get a full breakdown of what Medigap is.
Quick recap: There are two Medicare paths you can go down Original Medicare & Medicare Advantage. Since you can’t have a Medigap plan with Medicare Advantage, you can only get this on Original Medicare.
Original Medicare only pays for 80% of your approved medical costs and this is why you get a Medigap plan.
Medigap plans have a stringent insurability rule in most states, so you must pick the right plan when you first join Medicare because you may only have one chance.
For most people, you will get a 6-month window when you first join Medicare Part B to join a Medigap plan without having to provide any health history.
After that six-month window insurance companies can ask you for your health situation and history. As a result, insurance companies can deny you coverage or charge you more because of your health.
For this reason, many people aren’t able to change supplement plans later on.
Since your supplement decision is critical, let’s talk about the steps to take to get the right plan.
The first step to picking the right supplement plan is to decide which letter fits you best. There are 10 letters range from A to N. Different letters cover different things and fit people for various reasons.
Now, most states have supplement plans that reflect these letters, but three states (Massachusetts, Minnesota, and Wisconsin) have entirely different supplement plans, so please be aware of this.
Medigap premiums usually range from $30 a month to $180 a month in most states. States with more relaxed insurability rules or other unique Medicare rules can be twice as expensive for the same coverage.
When you go to an insurance company or agent, they will likely show you a plan F, G, or N.
Below are some key factors that impact the best supplement letter for your situation:
- What state do you live in?
- What are your health concerns?
- What is your income?
- Do you prefer lower premiums in exchange for taking on slightly more risk?
- Do you spend time in multiple states, or travel across states frequently?
- Do you own homes in multiple states?
- Do you plan on moving in the near future?
If the insurance company isn’t taking these factors into account or walking you through how it impacts your decision, then they won’t have the necessary information to help you make the right decision.
It’s critical to get very clear on which letter fits you best before you look at insurance company details.
Medicare is complicated, but you’re not alone.
The Medicare Coach is an independent expert. We are not associated with an insurance company, agent, or broker making our advice completely unbiased.
To get help with your decision, you can register for my next free online workshop by going here: https://join.themedicarecoach.com/free-workshop
