Differences in Medigap Plans

Often, when I meet with Seniors on their healthcare needs, I find three common themes.

• They are living on very tight budgets.
• They are comfortable with the Medigap plan they already have.
• They are overpaying for the Medigap plan they are on.

One thing I really try to stress to my clients is that all Medigap (Medicare Supplement) plans are standardized. Company A's plan F offers no differences in benefits than company B's plan F. None.

Did you catch the significance of that statement? If there are no differences in benefits, then we can understand that the only real difference from one plan to another, where both plans have the same name, is the price.

It's very possible to be overpaying for your benefits by $40, $50 or even more - every other month. I've seen situations where people are paying more than $800 per year for their Medigap benefits. The real shame in this is that most of these people could really use that money for other purposes.

Regardless of who you use to purchase your Medicare Supplement, I recommend that you always go with the lowest price. This is not like buying auto or homeowner insurance, where a company can differ from a competitor in the way they pay, the coverage they provide and so on. Go with the lowest price. It's as simple as that.