A Guide to Choosing a Medicare Supplement Company

Medicare supplement plans and insurance

Medicare supplement plans are also known as Medigap. Medicare supplement plans are used to cover the remaining part of the bill that is left out after Medicare covers it. Normally, Medicare covers eighty percent of medical bills after deductibles, and this is where Medicare supplement plans kick in to cover the remaining 20 percent. Medical supplement plans are covered by medical supplement insurance companies that are usually private insurance institutions. These private insurance companies work with the benefits provided by Medicare to provide patients with their supplemental needs. Medical supplement plans are meant to cover the bill that Medicare does not cover which also includes the deductibles.

Common plans

Medicare supplement companies provide a range of standardized plans that are identified from letters A to N. Each plan from A to N offers the same benefits the only difference comes at the prices and therefore one should be cautious of this. The following are some of the common types of plans for Medicare supplements:

  • Medicare supplement plan G
  • Medicare supplement plan F
  • Medicare supplement plan N

Choosing the right Medicare supplement company

One important thing that a person needs to note is that regardless of the company they choose for their Medicare supplement plans, the benefits are always the same. For instance, the Medicare Plan G from AARP United Health Care has to offer the same benefits as Medicare Plan G form Essence Healthcare. This leaves out the stress of having to pick which Medicare supplement insurance company offers the best benefits at affordable rates. When it comes to looking for an insurance company, it is important to look at the price as it is the main factor. The following is a guide on how to identify the right Medicare supplemental insurance company to use.

1. Choose a plan

Choosing a plan will be easy because the plans offer the same benefits in an insurance company. Look at each benefit of each plan from A to N and their prices before deciding on which is suitable. Once this is out of the way, one can move on to the next step.

2. Rate increase history

When looking for a Medicare supplement insurance companies, review the data of the company and look for the rate increase in the premium rates. As a patient one does not want an insurance company that will increase their premium rates during the year by surprise. If one cannot find any data regarding this, they can seek out the opinion of a third party who has used the insurance company before for Medicare supplement plan.

3. Loss ratios

This step is crucial as it helps one determine the plans that are more likely to experience a rate increase. For instance, if a company has a loss ratio of 80% and they can maintain it over a period, their pool has few unhealthy members. This means the range is acceptable and they can sustain a person in the company from year to year.

4. Hire an independent agent

When looking for a Medicare supplement insurance company, it is important to hire an independent agent that can assist in comparing the different companies. An independent agent is neutral because they do not have any exclusive agreement with any company. They are capable of offering one truthful information when it comes to loss ratios, financial ratings, claim history and price variations. They also have the knowledge and expertise to make one understand Medicare supplement plans and all its aspects.


Medicare supplement plans are essential in helping one be financially stable by covering what original Medicare cannot cover.

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