California medicare supplement medigap best value

Medicare supplements are standardized by the government so there are two major criteria: Company stability and monthly premium. As an independent insurance broker, our main goal is to alert our clients to the best value taking in to consideration the above concerns.		Medicare Supplement Bulletin 85% of Medicare Supplement applicants choose the F plan.

The first question when choosing a company is stability
With any kind of insurance, what you buy today might not be what you have tomorrow. If an insurance carrier runs into financial trouble, they can increase rates, leave the area or business...either way you lose. In the next 3-5 years, a lot of carriers will have difficulties because of the increasing costs. Lifeguard filed for Chapter 11. Health Plan of Redlands went bankrupt. Pacificare (Secure Horizons) has had a rough few years resulting in them pulling out of multiple counties all together. A strong carrier is the first concern. That being said, Blue Cross of California is by far the strongest carrier. They are owned by a company called Anthem which has been a dominant health carrier in multiple States. Stability of the company means rate stability and coverage reliability in the future.
The second question when choosing a Medicare supplements is RX
With the new Part D for medication, we can concentrate on the core benefits for Medicare supplements. Traditionally, the F plan has been a very good value because it offers coverage for Medicare key gaps such as the 20% co-insurance, excess (amount providers can charge up to 15% higher than what Medicare allows) and the two deductibles (Part A and B). Before Part D, we had to look at the H, I, or J plan for medication coverage but is no longer the case. The best value on the market tends to be the F plan and that is why 85% of Medicare supplement purchasers go that direction. Medicare Supplement Bulletin... Blue Cross of California is now offering a new plan...the Senior Smart Choice. For healthy Seniors that want to keep their costs down, this plan works like an F plan with a deductible, which saves an average of 50% off your monthly premium. For more information including Medicare supplement rates, click here.

A Medigap policy is health insurance sold by private insurance companies to fill the "gaps” in Original Medicare Plan coverage. Medigap policies help pay some of the health care costs that the Original Medicare Plan doesn’t cover. If you are in the Original Medicare Plan and have a Medigap policy, then Medicare and your Medigap policy will pay both their shares of covered health care costs.

Insurance companies can only sell you a "standardized” Medigap policy. These Medigap policies must all have specific benefits so you can compare them easily.

You may be able to choose up to 12 different standardized Medigap policies (Medigap Plans A through L). Medigap policies must follow Federal and State laws. These laws protect you. A Medigap policy must be clearly identified on the cover as "Medicare Supplement Insurance.” Each plan, A through L, has a different set of basic and extra benefits.

It’s important to compare Medigap policies because costs can vary. The benefits in any Medigap Plan A through L are the same for any insurance company. Each insurance company decides which Medigap policies it wants to sell.

Generally, when you buy a Medigap policy you must have Medicare Part A and Part B. You will have to pay the monthly Medicare Part B premium. In addition, you will have to pay a premium to the Medigap insurance company.

You and your spouse must each buy separate Medigap policies. Your Medigap policy won’t cover any health care costs for your spouse.

Information provided by www.medicare.gov