Best Medigap Plans for People Turning 65

best medigap plansIf you already understand what the plans cover, and want to skip ahead to find out which plan has the best rates for your zip code, click here.

When you are turning 65 or going on Medicare for the first time, there is an abundance of information available to you. There are several different types of plans and numerous companies that sell each type of plan. Moreover, the plans vary by geographic location, state or county (Medigap plans vary by zip code). There are a couple of variables that determine which plan is the “best”.

The two variables that deserve consideration in this are the PLAN that is best for you and the COMPANY that is best. Since Medigap plans are standardized – that is, all companies are required to offer the same coverage plans – the first thing that you have to decide is which plan you want. Here is the chart that shows what the different plans cover: Medigap Coverage Chart.

Determining which plan is right for you is a product of your health status and financial position. The top plans, Plan F and Plan C, are obviously the most expensive. However, they are also the most comprehensive. Plan F pays everything that Medicare A & B do not cover so that you do not have any out of pocket costs. However, often, Plan G is a better value than Plan F, the only difference being that it does not pay the Medicare Part B deductible (which for 2017 is $183/year). Typically, the premium savings is far greater than that Part B deductible amount.

Also, Plan F is being eliminated in 2020. This will likely lead to more/higher rate increases on that plan as compared to other plans.

The plan level below Plan G is Plan N. This plan is also a good alternative for people who are either in good health or have limited financial resources (but want the security and flexibility of a Medigap plan). There are other plans – 10 in total – but these three are the most commonly offered plans, and these three represent a top, middle and lower level of coverage. So deciding between those three is typically a good way to simplify it for most people, at least as a starting point.

Once you know which plan you want, the next step is figuring out which company has the best rates for that plan. These rates vary greatly by zip code, so it is essential to compare based on specific rates for your situation. You can call all the insurance companies to get these rates, or better yet, use an independent Medigap agent to compile them for you and provide you with that information.

Once you have the rates for the various plan options, it is very easy to compare and choose based on the rates and the company ratings/reputations. We would always recommend choosing the lowest rate for a specific plan, as long as it is from a relatively stable company.

If you have specific question or want to discuss the best Medigap plans for your area, contact us online or call us at 877.506.3378.


The Three Step Process to Changing Medigap Plans

Changing Medigap plans is relatively easy to do. More importantly, it is essential to do – or at the least, to compare the options – on an ongoing basis every few years. Medigap plans are completely standardized by the Federal government – this means that all plans are the same, regardless of which company sells it to you. For example, a Plan F with one company is the exact same as a Plan F with another company. Often, though, rates can vary widely, as much as $100/month for the same coverage. So, comparing the options, and changing if necessary, is a vital part of your sound financial plan once on Medicare.

So, what is the process for changing plans, if you elect to do so? It is very easy to do:

  1. First and foremost, understand what you have, what the plans are and how to compare them. So many people that we speak with every day do not realize or understand what plan they have or how the plans work. The plans are standardized, as mentioned above, so that means YOUR Plan G is not any different from a different Plan G. Also, all plans pay the same way, can be used anywhere that takes Medicare and use the Medicare “Crossover” system to pay claims. Next, you should understand how to compare plans. Once you understand that the plans are standardized, understand that you can compare plans to see if there is equal coverage for a lower price.
  2. Compare the options from an unbiased source. Unbiased is the key word here. There are many sources out there for comparing/purchasing a Medigap plan. But it is important to use an independent agent, primarily for their expertise and ability to compare all plans in a centralized place. An agent that sells one company is, obviously, going to tout their company, but it is more advantageous for you to compare using an independent agent.
  3. Make the move – apply for a new plan for a future effective date, then once approved, cancel the old plan, effective the same date the new plan starts. Once you have compared the plans available in your zip code, based on monthly premiums and company reliability, you can simply choose a plan and apply. You will apply for a future effective date – usually, at least 2-3 weeks in advance. Then, once it is approved, you will cancel your “old” plan effective the same date that the new plan starts. This way there is no lapse or overlap in coverage. and Secure Medicare Solutions help hundreds of people change to lower cost plans each year. Our job is to provide a full comparison of all the plans for your age and zip code, as well as providing information about which companies have been most reliable/stable over time. Once you have that information, we can work with you to help you decide on a plan and reduce your costs. If you would like to reduce your premium and have had your current plan over 12 months, you can easily do so. Contact us at 877.506.3378 or Quotes.

Garrett Ball on Google+