Medicare supplement insurance plans are a curious thing. Shopping for them can be extremely frustrating until you realize that the plans are standardized and the benefits included are indicated by their plan letters assigned by Medicare.
This insurance has been around since the mid-60s to supplement the gaps in Medicare. However, it wasn't until 1992 that Medicare supplements were actually standardized. Prior to this, shopping for a Medicare supplement insurance was a huge ordeal. Various insurance companies offered all sorts of variations on coverage. So, you had to not only identify the companies offering these plans but had to look at the premiums and benefits and then compare each plan to each other and determine which plan from which company was most valuable. And, of course, all this was before the Internet was available.
Insurance companies enjoyed the fact that most people had neither the resources nor the inclination to determine who might provide the best coverage at the best price - often to the detriment of the policyholder. Most people would just purchase plans from Blue Cross Blue Shield companies or that large association that "can not be named" - you know the one - rhymes with TARP.
Well, standardization and the Internet have made shopping for a Medicare supplement so much easier today. It also has provided more competitive rates from the various companies which, of course, benefits you.
The standardization ensured that plans had to have the exact same benefits (indicated by the plan letter) from company to company. This insurance plan could not have networks (unless it's a Medicare Select plan which limits you to certain hospitals) other than the Medicare network of doctors and hospitals. All claims had to be filed through Medicare electronically ending paperwork for policyholders. Medicare makes the decisions on whether a claim is going to be paid. If Medicare approves the Medicare supplement insurance company just has to pay the difference. This is all true without regards to who you buy your Medicare supplement from.
So, they have the same standardized benefits, same doctor's networks, and the same means for claim submission and approval. Well, what's the difference?
It comes down to price. Once you determine which Medicare supplement insurance plan letter makes the most sense then you just have to find rates from the different companies offering that plan letter in your area and determine their rates. This is where the lovely Internet comes in. Nowadays you can just go online and find rates within a few minutes. Just type in something like "Medicare supplement quotes" or "Medicare supplement rates" in one of the search engines and you'll have many options to choose from.
If my grandfather were still around I'm sure I'd get an earful about how hard it was for him to shop for his Medicare supplement.
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