Medigap Pros and Cons

Learn about the pros and cons of buying a Medicare Supplement Insurance plan. The Medigap pros and cons list was compiled by our licensed insurance agents.  This is helpful if you’re determining whether a supplemental plan is right for your health insurance coverage.

Medigap Pros

1.  Comprehensive coverage –  Medigap plans fill the gaps of Medicare.

2.  Network – Access providers nationwide who accept Medicare.

3.  No Deductibles – Most Medigap plans, but not all, help pay the Part A deductible.

4.  No Coinsurance – Medicare coinsurance is generally 20% that you’re responsible for.  Get a supplemental plan that covers Part A and Part B coinsurance.

5.  No Co-payments – If you don’t like paying co-pays, find a Medigap plan that fills this gap.

6.  Security – Know that a Supplement will ensure your financial security against unforeseen healthcare expenses.

7.  Budget – Know what you will have to pay (or not pay) when visiting providers.  Plan F, for example, is the comprehensive plan where you make your premiums and don’t have to worry about out-of-pocket expenses.

8.  Standardized – There are 10 Medicare Supplement Plans in 47 states that have exactly the same coverage no matter which company you apply with.

9.  Guaranteed Renewable – A Medicare Supplement company cannot cancel your policy for using the policy too much.  Every year your policy will renew without having to apply.

10.  Guarantee Issue –  You may have guarantee issue rights into certain Medigap plans, such as Plan F.

11.  Change –  You can change your Medigap plan or company any time you want.  You may have to go through underwriting with certain companies.

12.  Free Look –  You have a 30 day free look from the time your policy is approved to drop the coverage and receive your premium back.

Medigap Cons

1.  Drug Coverage – Medigap plans do not help cover prescription drugs.  You need to purchase a stand-alone Prescription Drug Plan.

2.  Expensive Premiums –  For some people, paying for a Medicare Supplement policy may be too expensive.

3.  Eligibility – Most states require individuals to be 65 or older and all states require individuals to have Part A and Part B.  Check with your states Medigap eligibility in your “Medicare & You” handbook.

4.  Dental – Medigap plans do not help with routine dental care.

5.  Vision – Medicare Supplement plans do not pay for routine vision care.

6.  Underwriting – If you don’t have a guarantee issue right, it may be difficult to get approved by an insurance company if you have certain health conditions.

7.  Policy fee – Most insurance companies charge a one-time policy fee (usually $20).  The policy fee does not go to agents, it’s for processing your application.

8.  Rate Increases – No matter which company you apply with, your rates will increase.  Don’t let anybody tell you that their insurance company’s rates will not increase, because they will go-up eventually either with your birthday or an area increase.

9.  Insurance Agents – Medicare Supplement insurance agents for some reason are very pushy and take advantage of seniors.  Don’t let anybody ever tell you they have the “best” plan available because the plans are standardized (same).  Shop multiple insurance companies for low rates and then select a strong company with a low rate.  We, Retirement Transitions, are independent insurance agents that are capable of showing you multiple companies that’s completely unbiased.

The “Medigap Pros and Cons” list was compiled by our knowledgeable and experienced specialists.  Learn more about Medicare Supplement insurance coverage and plans.