With our the years experience and dealing with clients that are either becoming eligible for Medicare or clients that have had a Medicare supplement plan for years, it is still amazing to us that most people do not know that Medicare supplement plans are all standardized. Here is some information that will help explain what “standardized” means and how this could save you money on your Medicare supplement plans in Texas.
Most individuals know that a Medigap (Medicare Supplement) Policy is a private health plan designed to help cover the gaps or help pay some of (if not all of) the cost left by just having Original Medicare. Medicare has been around since 1965, but in 1992 the Federal Government standardized all Medigap policies. These Medigap policies must follow Federal and state laws designed to protect the individual, and must clearly state that it is “Medicare Supplement Insurance”. “Each standardized Medigap policy must offer the same basic benefits, no matter which insurance company sells it. Cost is usually the only difference between Medigap policies with the same letter sold by different insurance companies.” The following statement is on page 9 of “Choosing a Medigap Policy 2010”, published and written by CMS or the Centers of Medicare and Medicaid Services.
So, what does this mean? Point blank, no matter what the cost difference is from one insurance company’s Medicare supplement plan F to another’s there is no difference in basic benefits offered. With this being said, then why as a consumer would you choose to pay more on your monthly premium to an insurance company that offers the same basic benefits in their Medigap policy than another insurance company?
Now, there are still many factors to keep in mind. Making sure that the company you choose is Financial Stable, understand the different ways that insurance companies set their prices for Medigap policies, and making sure that you are getting the plan that is going to offer you the best benefits for your situation.
This is where having a licensed independent insurance agent on your side can help. If they are truly independent, than they should be able to show you all of your affordable options for Medicare supplements in your area and a licensed agent can also help explain the different Medigap insurance plans to make sure you find the best coverage to control the out-of-pocket cost left by Original Medicare. If you live in Texas, and you are in search of a Medicare supplement, give Medigap Select of Texas a call to make sure you find an affordable, yet comprehensive Texas Medicare supplement.