Private insurance companies provide Medigap coverage
While Original Medicare (Parts A and B) is administered by the federal government, Medigap policies are sold by private insurance companies to help beneficiaries with out-of-pocket costs. These private insurers must follow federal and state laws regarding Medigap plans, and the core benefits of each standardized plan (e.g., Plan G) are identical regardless of which company sells it. However, the premiums, customer service, and added benefits can vary significantly among providers.
Prominent Medigap insurance providers
Numerous well-established insurance carriers offer Medigap policies across the country. Some of the most widely recognized include:
- AARP from UnitedHealthcare: Often considered a top option for its wide availability and competitive pricing, UnitedHealthcare sells Medigap plans endorsed by AARP. AARP members can access Medigap plans from UnitedHealthcare in every state.
- Aetna: Aetna, which is owned by CVS Health, offers a variety of Medigap plans and is known for its competitive premiums for some plan types.
- Blue Cross Blue Shield (BCBS): A major provider in the Medicare Supplement market, BCBS offers a broad range of Medigap plans nationwide, with specific offerings varying by regional company.
- Mutual of Omaha: A major provider with a reputation for solid customer satisfaction and competitive pricing, particularly for premium discounts.
- State Farm: This well-known insurer also provides Medigap policies, offering multiple plans for those seeking supplemental coverage.
- Cigna: A healthcare giant that provides Medigap policies in many states and sometimes offers online discounts.
How to find a Medigap policy
Finding the right Medigap plan involves researching and comparing policies from different private insurers. Since the core benefits of standardized plans are the same, comparing monthly premiums is a key step. Here are the steps to follow:
- Decide which plan type you want: Review the standardized Medigap plans (A, B, D, G, K, L, M, N) and their specific benefits to determine which one best fits your healthcare needs. Remember that Plans C and F are not available to those newly eligible for Medicare on or after January 1, 2020.
- Use the official Medicare website: Utilize the Plan Finder tool on Medicare.gov. After entering your ZIP code, the tool provides a list of companies selling each type of Medigap plan in your area.
- Contact your State Insurance Department or SHIP: For free, local, and unbiased assistance, reach out to your State Health Insurance Assistance Program (SHIP). Your State Insurance Department can also provide a list of licensed insurers and share any consumer complaints against them.
- Compare quotes: Contact several insurance companies selling the plan you want to get official price quotes. Since premiums can vary widely, this comparison shopping is crucial for finding the best rate.
- Be aware of your enrollment rights: The best time to buy a Medigap policy is during your 6-month Medigap Open Enrollment Period, which begins the month you turn 65 and are enrolled in Medicare Part B. During this time, insurers cannot deny you coverage or charge you more due to pre-existing health conditions. After this window, medical underwriting may apply, making coverage more expensive or difficult to obtain.
Medigap vs. Medicare Advantage: Two different approaches
It is important to understand that a Medigap policy is different from a Medicare Advantage plan, and you cannot have both at the same time. Medigap policies work with Original Medicare, while Medicare Advantage plans are an all-in-one alternative.
| Feature | Medigap Plans | Medicare Advantage Plans |
|---|---|---|
| Provider Network | See any doctor or hospital that accepts Medicare. | Typically limited to a specific network of providers. |
| Monthly Premiums | Higher premiums; you also pay your Part B premium. | Can have lower or $0 premiums, but you pay your Part B premium. |
| Out-of-Pocket Costs | Fewer out-of-pocket costs for covered services. | More out-of-pocket costs, with a yearly maximum. |
| Travel Coverage | Coverage for foreign travel emergencies is often included in some plans. | Coverage is limited outside the plan's service area. |
| Prescription Drugs | Does not include Part D coverage; you must purchase a separate plan. | Most plans include Part D coverage. |
| Extra Benefits | Minimal extra benefits beyond standardized coverage. | Often includes extra benefits like dental, vision, and hearing. |
Conclusion
Medigap coverage is provided by a wide array of private insurance companies, not the federal government. Well-known insurers such as UnitedHealthcare (AARP), Aetna, Blue Cross Blue Shield, Mutual of Omaha, and State Farm are key players in this market. While the benefits of each standardized Medigap plan are federally mandated and identical across companies, the cost and customer service can differ. Consumers should use resources like Medicare.gov and their State Health Insurance Assistance Program to compare prices and find a policy that fits their budget and needs during their Medigap Open Enrollment Period. Understanding the distinction between Medigap and Medicare Advantage is essential, as the two types of coverage cannot be combined. For comprehensive details on plan benefits and rules, including specific state regulations, consult the official Medicare website.
Frequently Asked Questions
Is Medigap provided by the federal government?
No, Medigap policies are sold by private insurance companies and are not administered by the federal government, which only oversees Original Medicare.
Can I use my Medigap plan with a Medicare Advantage plan?
No, it is illegal to have both a Medigap policy and a Medicare Advantage plan at the same time. Medigap policies only work with Original Medicare.
Do all companies offer the same Medigap plans?
While all insurance companies must sell Medigap Plan A, they are not required to offer all other standardized plans (B, D, G, K, L, M, N). Plan availability varies by insurer and state.
What does Medigap not cover?
Medigap generally does not cover long-term care, vision, dental, hearing aids, or prescription drugs. Separate policies are needed for these types of coverage.
How does cost vary among Medigap providers?
The premiums for identical standardized Medigap plans can differ significantly between insurance companies. Factors like age, location, and company pricing methods affect the final cost.
Is the Medigap plan coverage the same regardless of the company?
Yes, the core benefits for each standardized Medigap plan (A through N) are the same, no matter which private insurer sells it. The only differences are price, customer service, and any extra perks offered.
How can I get help comparing Medigap policies?
You can get free, unbiased counseling from your State Health Insurance Assistance Program (SHIP) or use the Plan Finder tool on the official Medicare website.
