Best Methods to Comparing Medicare Supplement Plans
There are several different things to look at when comparing plans. Below are some areas a consumer should look at.
There are different ratings available. For insurance companies, I always review the AM Best rating. Most companies are given an AM Best rating. The AM Best rating given to a company determines the ability of the insurer to meet its financial obligations to its policy holders.
This area is crucial, in my opinion, to work with an agent and company who can easily be reached. Questions that are good to ask a knowledgeable broker include – Is this service reliable? Do you find the company has a good reputation and pays claims in a timely manner?
Average Rate Increase
Medicare Supplement Plans do increase over the years of carrying one. It is to your benefit to take into consideration the average rate increase of a plan. In recent years Plan F has averaged between 7-12% in annual increases compared to Plan G, which has averaged 0-8% with most companies. Questions that are good to get answers to include – How long will your rate be guaranteed for? Have past rate increases with company XYZ been average compared to other companies?
Some insurance companies provide a household premium discount if someone simply resides with you, regardless if they carry a plan with a company or not. The household discount varies based off the company, but it is often between 5% – 12%. Discounts don’t just stop with premiums. Some insurance companies provide discounts or membership to a fitness club, discounts for vision, and discounts for hearing aids and exams. An independent insurance broker can explain all discounts available to you in your situation.
What does Medicare say about how to compare plans?
About the Author
John Bush has been an independent insurance broker helping those on Medicare learn of their rights and options since 2010. He has helped many people find the right plan that is best for them. John is passionate about helping people in a manner that is easy to understand, resourceful, and non-pushy. John helps people get the best coverage for their premium dollar without sacrificing customer service.