Medicare Supplement Insurance - Does Size Matter?

When buying Medicare supplement insurance, does size or financial strength really matter? Not really. The myth that a carrier rated "A" or "A+" is better than a "B" or "B+" Medigap carrier is just that . . . a myth.

When considering Med supp coverage all you really need to evaluate is the rate. All plans are standardized, so all Medigap plans "F" are identical, except for the rate. It doesn't matter if you buy a Blue Cross Medigap plan or one from AARP. The only difference is, how much will you be willing to pay for identical coverage?

I have clients all over the state of Georgia and when it comes to Med supp rates they are all over the boards. It is not unusual at all to see rates for the most expensive companies that are double the lowest rate.

Some people mistakenly believe if you pay more you get more.

Not so, you just paid more.

I recently ran a Med supp rate for a senior in Peachtree City, Georgia. He was looking for Medigap plan F but also wanted numbers on plan G.

In many cases the premium savings by switching from the popular (and expensive) plan F to plan G is significant . . . enough to more than cover your additional out of pocket for the Medicare Part B deductible.

The Medigap carrier I proposed is a "B+" company and one I have used off and on for 10 years. After asking a lot of questions I got a "Dear Bob" email telling me he did not want a small, B rated carrier. Instead he is willing to pay an extra $500 per year to have a "financially sound" carrier promoted by AARP pay his bills.

I suppose some seniors have money to burn.

After working with clients for more than 35 years, helping them find the best value for health insurance, I switched to the Medicare market earlier this year. The same kind of solutions available to my under age 65 clients are also there for 65 and over Medicare beneficiaries.

You really don't have to pay too much for Med supp coverage unless you just want to.

The open enrollment period for Medicare is about to end and many other seniors are just now turning age 65 and looking for solutions to their Medicare needs. Smart buyers really can save money by looking around and talking to local agents that are familiar with Med supp plans in their state.