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 Supplements (Medigap)
Navigating the world of healthcare coverage can be overwhelming, especially when it comes to Medicare. While Original Medicare (Part A & B) provides valuable benefits, it doesn't cover all of your medical expenses. Medicare Supplements, also known as Medigap plans, help to fill the gaps in Medicare coverage. Below is a chart that shows all of the Medicare Supplement Plans that are available today. As a side note- Medicare designed the benefits within each Medicare Supplements Plan, so every Plan (Plan A, B, C, etc.) is the same no matter the company you choose. It's like buying a Ford truck- no matter which Ford dealer you go to, all the vehicles are the same.
Plan C & Plan F aren’t available if you turned 65 on or after January 1, 2020, and to some people under age 65. You might be able to get these plans if you were eligible for Medicare before January 1, 2020, but not yet enrolled. Learn more about who can buy this plan.
*Plans F & G offer a high deductible plan in some states.
**Plans K & L show how much the provider will pay for approved services before you meet your out-of-pocket yearly limit and Part B deductible. After you meet the yearly limit and deductible, the plan will pay 100% for approved services.
***Plan N pays 100% of the costs of Part B services, except for copayments for some office visits and some emergency room visits.