Learn How to Avoid Costly Medicare Mistakes
Over the years, we have heard all kinds of misconceptions about medicare supplement "medigap" plans from new clients and other agents/brokers. Some are humorous while others are downright dishonest. Here are some common misconceptions and tricks agents/brokers might try to use on you.
- Our plan costs more because it pays better - No medigap company pays claims faster or better than any other medigap company. Claims are submitted by your provider to CMS. CMS determines the amount to be paid and notifies your medigap plan. Your medigap plan is required by law to pay that amount to your provider. CMS dictates the amount paid, not the insurance company.
- Compare the same letter plans - Be sure you are comparing Plan F rates to other carriers Plan F rates – Some agents may try to confuse you by not comparing the same letter plan. Always compare F vs F, or G vs G rates.
- Don’t make a check out to the agent – It’s illegal for an insurance professional to take a payment in their name. Checks should only be made out to the carrier you are applying for.
- Don’t let anyone pressure you into buying a plan – There are no Medicare supplement plans that will only take your application today - example: "if you don't enroll today, you will not be able to get this rate." If anyone is pressuring you to buy today or they will not leave information with you to review, beware. Plans to have rate changes and will let you lock in a lower rate before the new rate is released. However, if the agent is pressuring you to buy today, it's a warning sign!
- Our plan costs more, but we lock in your rate forever – All carriers will experience rate increases over time. There is no plan out there that will maintain a level premium for the rest of your life. CMS changes deductibles every year for Part A and Part B, so companies have to adjust their rates to cover those changes. It’s often a misleading sales tactics to trick you into paying for a high priced plan.
- If the agent can only offer one company - We recommend working with someone who represents multiple companies. By representing multiple companies, brokers can offer you many different options. We do not recommend working with captive agents or direct with the company call center. If they only represent one company, who will call to let you know there is a better plan with another company? Most of the time, these agents are not in this business long term.
- Call center tells you they can get you a better deal by cutting out the broker – You will not pay more by using a broker. You will not get a discount by going direct with the company. Pricing is the same whether you go through us or direct with a company. See #6 as to why going direct may not be the best idea.
- Our Medicare Advantage plan is the same as your Medicare Supplement plan - Medicare Advantage plans and medicare supplement plans are two different animals. Medicare Advantage plans are highly regulated by CMS. Please see our page comparing medicare supplements to medicare advantage plans.
If you would like us to help you avoid these mistakes, feel free to contact us via our contact form on the right of this page. We take the time to educate you on all of your options and help you find a plan that fits your needs. We look forward to helping you.