If you are just getting started with Medicare, it can sometimes feel like you’ve stepped into a whole new world of letters and plans. You may see options like Plan G, Plan N, and Plan L, and ask what those letters mean.

Each Medicare Supplement (Medigap) plan covers the costs that Original Medicare does not pay for. But not every Medigap plan covers the same costs. Some offer the lowest possible monthly cost, while others give you stronger coverage, so you pay less when you truly need to use your insurance.

Below, this Supplemental Medicare agency in Merrillville, Indiana is going to explain the main differences between these plans.

Why do some Medigap plans cover more than others?

At first, all those Medigap plans can look similar. But upon closer examination, you will notice that each plan covers a slightly different set of costs.

Every Medigap plan covers deductibles, coinsurance, and copayments. These are the parts of your healthcare bills that Original Medicare leaves for you to pay out of pocket. The difference between plans is how much of those costs they cover and how much you are willing to handle yourself.

Some plans, like Plan G, are known for their comprehensive coverage. This plan is one of the most popular Medigap plans because it covers almost all your out-of-pocket expenses. The only thing you usually must pay on your own is the small annual Part B deductible. Once you pay that, most of your doctor and hospital costs are covered.

Other plans, like Plan N or Plan L, usually come with a little more cost-sharing. With these plans, you will pay slightly more when you go to the doctor or hospital, but your monthly payment will be lower.

Each plan is labeled with a letter (from A through N), and the benefits for each letter are standardized by the federal government. So, a Plan N in Indiana will cover the same benefits as a Plan N in any other state. The only real difference is the price that each insurance company charges for it.

Because prices can vary so much, you must compare your options carefully. Your local Supplemental Medicare agency in Merrillville, Indiana can help you compare each plan and show you what the costs and benefits would look like for you. They can also check if your favorite doctors and hospitals accept the plan you are considering.

What affects the price of a Medigap plan?

Insurance companies use different methods to set premiums for Medigap plans.

Some use “attained-age pricing,” where your premium is based on your current age and increases as you get older. Others use “issue-age pricing,” where your rate is based on your age when you first sign up. With this, your premium does not increase solely due to age, but it may still increase due to inflation or company-wide rate changes. Some even use “community-rated pricing,” where everyone pays the same rate regardless of age.

Because companies can choose which method they use, prices can vary a lot from one company to another, even for the same plan. This is why comparing plans is so important. You may find two companies offering Plan G, but one could cost more than the other simply because of how they calculate premiums.

In Indiana, all Medigap plans and any rate changes must be filed with and approved by the Indiana Department of Insurance. Still, the approval process does not mean that prices are identical across the board. Each company has its own way of managing costs and setting rates.

You should also be aware that premiums can fluctuate over time. Even if you lock in a good rate now, your premium might increase in the future. This is another reason why it’s wise to consult with your local Supplemental Medicare agency in Merrillville, Indiana throughout the process.

Looking for a Supplemental Medicare agency in Merrillville, Indiana?

If you are ready to meet with the top-rated Supplemental Medicare agency in Merrillville, Indiana, Senior Care Insurance Services is here for you. Our licensed agents can compare rates across trusted insurance companies and help you find the best plan for your needs. Contact us today to schedule an appointment with one of our agents.