The rules for Medicare Supplement companies are standardized and regulated by the Federal government to provide simplicity and uniformity to make understanding and comparing the plans easier for you, the consumer. This means that all companies must offer the exact same coverage and benefits for a specific plan letter. For example, if a Medicare Supplement Plan F is sold by Company 1, it must have the same exact benefits as Plan F sold by Company 2, and every other company that offers Plan F.

Although all Medicare Supplement plans are standardized and must follow these rules, each insurance company still sets its own prices for its Plans, and these prices can vary dramatically from one company to the next.

The reasons for why one company may charge a higher or lower rate than another company range from the size of the company and how many insureds they have, to the marketing and branding strategy of the company, to the restrictiveness of their underwriting and how efficiently they operate the company. Regardless, the significant difference in price that companies charge for the exact identical plan creates a huge need to compare prices from the marketplace and determine which carrier is going to provide you with the most cost efficient solution.

Although there are 10 different Medicare Supplement Plans (letters A-N) that are available to consumers, the majority of seniors have either Plan F, Plan G, or Plan N due to their combination of cost efficiency and comprehensive and simple to understand benefits.

Plan F is the most popular plan, with about 50% of Medicare Supplement policy holders having this plan. Plan F is often referred to as the “Cadillac Plan” because it is the most comprehensive in terms of the benefits it offers, since it covers every deductible, copay, and coinsurance that Original Medicare leaves you with. This means you will have zero out-of-pocket liability for all of your benefits under Medicare Part A and Part B, which also gives it the most convenient and simplified experience since there will never be any out of pocket bills that will be sent to you.

Plan G is often considered the best value and most practical plan since it has all the same benefits as Plan F except that, in exchange for a lower premium, it does not cover one small deductible that Medicare leaves you with- your once-a-year Part B deductible of $147 a year. This means that, with Plan G, your first $147 of healthcare costs that fall under Medicare Part B will have to be paid out of pocket, since it will not be covered by Medicare or your Medicare Supplement plan. Once this deductible is met your Plan G will operate exactly like Plan F, with all other deductibles, copays, and coinsurance being covered by your Medicare Supplement plan. Because Plan G leaves the plan holder with this small piece of cost sharing of the once a year Part B Deductible, Plan G will have a lower monthly premium than Plan F, which usually saves more than enough to make up for the out of pocket cost.

For an even lower premium plan that still accomplishes the main features that Medicare Supplements are designed for – protection from high out of pocket costs and uncertainty, clear benefits and ability to budget, lack of confusion and inconvenience of handling complex bills, and access to your own choice of doctors, hospitals, and healthcare providers- Plan N has become an increasingly popular choice.

Like Plan G, Plan N also leaves the plan holder with the once a year Part B deductible but also includes an additional $20 copay for doctors office visits, $50 copay for emergency room visits, and also does not cover what is known as Part B excess charges. Part B excess charges are if a doctor does not accept Medicare assignment, then they can charge an "excess" over and above what Medicare Part B pays, in the amount of up to 15%, depending on which state you are in. So, for example, if you have a certain medical test or procedure, and Medicare determines that the reasonable and approved fee is $500, a provider that does not accept Medicare assignment can charge up to 15% in excess, or an additional $75. If you have Plan N, which does not cover this potential excess charge, you would be responsible for that additional $75.

All supplement insurance companies pay claims the same way, and most pay them electronically so you do not have to file any claims yourself.

In General, the top three plans can be summed up as follows:

Option 1 - Medigap Plan F- Most Comprehensive and Convenient

• Most comprehensive coverage- 100% coverage of Medicare Part A and B out-of-pocket gaps

• Most Popular – Almost 50% of Medicare Supplement Policyholders have this plan

• Easiest to Understand

• No deductibles, co-pays, or coinsurance- so no out of pocket at all

• Choose any doctor or hospital that accepts Medicare

• Most Expensive but most predictable and convenient since there is zero out of pocket

Option 2 - Medigap Plan G - Best Value and Most Practical

• Same exact coverage as Plan F except for no coverage of annual Medicare Part B Deductible

• Plan member pays the once-a-year Medicare Part B Deductible ($147 in 2015) when services are received

• No other co-pays or coinsurance

• Choose any doctor or hospital that accepts Medicare

• Lower Monthly Price than Plan F and Lowest Annual Net Cost

Option 3 - Medigap Plan N - Lowest Price but More Cost Sharing

• All major gaps covered but 4 potential sources of out of pocket expenses

• Plan member pays the once-a-year Medicare Part B Deductible ($147 in 2015)

• Plan member pays $20 co-pay for doctor visits, and $50 co-pay for emergency visits

• Plan member is responsible for Part B excess charges (up to 15%) if doctor doesn’t take assignment

• Choose any doctor or hospital that accepts Medicare

• You take on more cost sharing through small copays and deductibles in return for lower premiums

Once you are enrolled in Medicare Parts A and B, Medicare Supplement Plans can be applied for or changed at any time during the year. You do not have to wait until Annual Open Enrollment, or AEP, which is Oct 15th to Dec 7th every year. (That’s when you see all the TV commercials!) That period is only for those who are switching their Medicare Advantage plans (Part C) or their prescription drug plans (Part D). This fact is often unknown, or misunderstood.

Yes. When you have a Medicare Supplement plan you can see any doctor, hospital, or provider that takes Medicare. There are no networks that you must stay and no referrals needed. In addition, there are no state boundaries with a Medicare Supplement plan. All Medicare Supplement plans will work and be taken the same way anywhere in the country. Even medically necessary emergency care outside the US is covered.

If you decide to change MedSup Plans, you can still keep your old plan for up to 30 days before canceling it. You must promise to cancel the old Medigap plan when filling out the application for the new plan, but you're allowed a 30-day "free-look" period, in case you opt against changing Medicare Supplement Plans. This period begins when you start your new policy. You should not cancel your old plan until you are sure that you want to keep the new policy.

Be aware that you're required to pay both premiums during the 30-day "free-look" period.

Yes, many companies now offer a household or spousal discount if multiple members of the same household are enrolled with the same company, which with some companies can reduce your premiums by up to 12% a year.

No. You and your spouse must each enroll in a Medigap plan in order to obtain Medigap coverage. However, some companies do offer substantial discounts for members of the same household who have their Medicare Supplement plans insured with the same company.

You only have to meet your Medicare Part B Deductible, of $147, once a year, even if you switch plans. If you change plans mid-year and have already met your Part B deductible that year then you will not have to pay it again for that year.

In most cases, yes you do. However, there are a few exceptions. When an individual first enrolls in Medicare Part B, they have a 6-month guaranteed issue right to be accepted into any Medicare Supplement plan with any company without any health questions asked. This means that, regardless of your health status, the insurance company is required to accept you.

If you are outside of this 6-month guaranteed issue period, the insurance company will have an underwriting process that includes health questions, and sometimes a phone call, and can use their own discretion whether to accept you based on your health status. However, there are a few situations that allow you to leave a Medicare Advantage plan and join a Medicare Supplement plan without being subject to medical underwriting.

No, your Medicare Supplement Plan is guaranteed renewable and non-cancellable, which means as long as you pay your monthly premium payment the insurance company can never cancel your coverage or single you out in any way due your health. In addition, a Medicare Supplement company can never raise your rates individually based on your ongoing health or claims history. This means your company can never single you out for rate increases based on your own use of the plan or any health issues you had during the year. Even if you have had hundreds of thousands of dollars of medical costs paid for by your Medicare Supplement company, they cannot use this in any way to make you pay a higher rate than the rest of the people in your plan.

No, you do not jeopardize your current coverage in any way by applying for a lower rate with another company. Even if you are denied by the new company you are applying with, this in no way can disrupt your current coverage. You are 100% assured that your existing coverage will continue as normal.