How to Choose a Medicare Supplement Broker
And Avoid Costly Mistakes
Your complete guide to the five ways to purchase a Medicare Supplement, the questions you should ask before buying, and how to avoid paying more than necessary as you get older.
Introduction: Why Choosing the Right Broker Matters
Choosing a Medicare Supplement is one of the most important financial decisions you'll make when you enroll in Medicare. But there's something many people overlook.
Who you buy your Medicare Supplement from can be just as important as which insurance company you choose.
Let me explain why.
When most people first enroll in Medicare, they're concerned about three things: which plan they should purchase, which insurance company they should choose, and how much their monthly premium will be.
Those are important questions. But there's another question that could be even more important over the long run.
Who's going to look after you five, ten, or fifteen years from now?
Medicare Supplement premiums generally increase over time. The insurance company offering an attractive premium when you're 65 may become considerably more expensive by the time you're 75 or 80.
Unfortunately, many people purchase their Medicare Supplement and never hear from their insurance agent again.
They continue paying their premiums year after year, often without realizing that another insurance company might offer comparable coverage at a substantially lower price.
And here's where things can become particularly difficult.
In most states, once your initial Medigap Open Enrollment Period and other applicable enrollment protections have expired, changing insurance companies may require medical underwriting.
That means an insurance company can review your health history and, in many circumstances, decline your application.
By the time you discover that you're paying too much, your health might prevent you from changing insurance companies.
That's why I believe your relationship with your Medicare Supplement broker deserves serious consideration.
A Real Example of What Can Happen
Let me share an experience involving a couple who were referred to me.
The husband was 75 years old and paying $632 a month for his Medicare Supplement Plan F.
His wife was 71 and paying $532 a month for Plan G.
Together, they were spending $1,164 every month on their Medicare Supplements.
During our conversation, I asked the husband a simple question.
"Has your insurance agent ever called you to review your coverage?"
His answer was no.
Fortunately, both were healthy enough to qualify for new coverage. After reviewing their options, we were able to move them to new policies.
Their combined savings exceeded $10,000 a year.
Think about that.
More than $10,000 a year in premium savings.
Of course, their situation isn't typical of everyone. Changing coverage can involve different benefits, out-of-pocket costs, and underwriting requirements. Savings are never guaranteed.
But their experience illustrates something I've witnessed repeatedly during my years in this business.
People purchase Medicare Supplements and assume their insurance agent will contact them if something needs attention.
Unfortunately, that doesn't always happen.
The lesson is simple.
Don't just shop for a Medicare Supplement
Shop for someone who will help you manage that supplement for years to come.
Let's examine the five primary ways people purchase Medicare Supplements and the advantages and disadvantages of each.
Part 1: The Five Ways to Purchase a Medicare SupplementHeading 2
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Medicare Costs
Paying for Medicare coverage is different from how you paid for your health insurance during your working years. Instead of one premium payment, Medicare coverage is divided into separate parts that have their own costs. It is important to note that these costs may differ if you have a Medicare Supplement policy or certain Medicare Advantage plans.
Part A Medicare Costs:
Typically, there's no cost for Medicare Part A (Hospital Insurance) if you or your spouse have worked and paid taxes for at least 10 years. This is often referred to as "premium-free Part A." If you're eligible for Social Security benefits, you should be eligible for Part A at no cost.
If you need to buy Part A premium and have paid taxes for less than 30 quarters, the cost can be up to $518 per month in 2025. For those who paid Medicare taxes for 30-39 quarters, the standard premium is $285 in 2025.
Any expenses incurred as an inpatient in the hospital fall under Medicare Part A. In 2025, you have to pay a $1,676 deductible before your hospitalization coverage begins unless you've purchased a supplement, or Medigap, policy. For hospital stays longer than 60 days, there are additional costs to the deductible.
Part B Medicare Costs:
Premiums for Part B are based on your modified adjusted gross income (MAGI) from two years ago. This information is provided to Social Security by the IRS. Your MAGI includes various factors like wages, interest, dividends, capital gains, Social Security benefits, and tax-deferred pensions. Medicare uses your tax return from two years ago to determine your Part B and Part D premiums.
Most Medicare beneficiaries will pay the standard Part B premium of $185 per month in 2025. If your income is higher than certain thresholds, your premium may be higher based on the Income Related Monthly Adjustment (IRMAA). The Part B premium will be automatically deducted from your benefit payment if you receive retirement benefits from certain organizations.
The Part B deductible for 2025 is $257. After meeting the deductible, Medicare covers 80% of approved services, and you're responsible for the remaining 20%. Part B covers services like doctor visits, lab tests, x-rays, and other outpatient services. It's important to note that there's no cap on your out-of-pocket costs under Part B.
Part D Medicare Costs:
Most Part D plans charge a monthly premium that varies by plan carrier. If you're enrolled in a Medicare Advantage Plan or a Medicare Cost Plan that includes prescription drug coverage, your drug coverage will likely be included in your monthly premium. Some Part C (Advantage) plans may not have a premium.
Monthly Part D premiums are set by individual insurance companies and vary based on factors like the carrier, location, and drug formulary. The projected national average monthly premium in 2025 is $46.50 for a Part D drug plan. However, premiums can range from $10 to $100 depending on various factors.
If you have a high income, you may pay an additional amount called the Income Related Monthly Adjustment Amount (IRMAA) on top of your standard plan premium. Just like with Part B, if your income exceeds certain thresholds, you'll pay an extra amount. The exact IRMAA can be determined using a chart provided by Medicare.
The maximum annual deductible for Part D plans in 2025 is $590, although insurance carriers can charge less or even waive the deductible entirely. After satisfying the deductible, you enter the Initial Coverage Phase and pay the network-discounted price for your medications.
If you have any questions or want more information, we are here to help.
Give us a call at 800-275-1844