As insurance agents, one of the most important products you can offer clients approaching age 65 is Medicare supplemental insurance, also known as Medigap. While original Medicare obviously covers a significant portion of healthcare costs for seniors, your members can still be left exposed to many expenses like deductibles, copayments, and other out-of-pocket costs. That’s what sets Medigap plans apart, because they fill the “gaps” in Medicare coverage and provide an extra layer of financial protection.
Medigap’s biggest draw is the peace of mind it brings. With a supplemental plan, members will know their yearly medical expenses are capped at a predictable level. This makes it simpler to plan for healthcare costs in retirement without worrying about a surprise, unaffordable bill.
Medigap’s Bigger Networks
One big advantage of Medigap is that members can get medical care from Medicare’s huge network of doctors and hospitals across the country. With Medicare Parts A and B as your main insurance, Medigap members can visit almost any healthcare provider that accepts Medicare patients. This includes well-known places like the Mayo Clinic, Cleveland Clinic, MD Anderson Cancer Center, and top university-affiliated hospitals.
That’s not the only benefit. An often-overlooked aspect of Medigap is the ability to see specialists without requiring a referral from a primary care physician. This streamlines the process for beneficiaries who need specialized care from cancer doctors, surgeons, or other medical experts.
Easy-to-Understand Coverage
While there are 10 different standardized Medigap plans available in most states (called A, B, C, D, F, G, K, L, M, and N), the coverages provided by each plan letter are the same nationwide. Plan G, for instance, covers the same basic benefits whether you purchase it in Texas or Tennessee. This makes it easier to understand plan options and make exact comparisons when considering different rates.
The consistency of Medigap plans was mandated by federal laws to promote stability and minimize confusion. Insurers cannot pick and choose which benefits to include or design their own non-standard plans. Beneficiaries can purchase a Medigap policy from any insurer licensed in their state and know they are buying into a government-defined set of coverages.
Medigap Not for Everyone
While Medigap plans offer valuable supplemental coverage for out-of-pocket Medicare costs, the monthly premiums can be prohibitively expensive for many beneficiaries on fixed incomes. The costs of these private insurance plans are not subsidized or capped based on income levels. A comprehensive Plan G with high deductibles can easily exceed $200 per month in some states. For lower-income Medicare recipients, particularly those just above the subsidy thresholds for Medicare Savings Programs, paying hundreds more per month may simply not be feasible. Insurance agents should be sensitive that while Medigap coverage is extremely useful for reducing overall out-of-pocket spending, the premiums represent a significant ongoing expense that prices out a segment of the Medicare population.
How Does Agility Help You?
With Agility Insurance Services on your side, you get top-flight support that allows you to offer the best Medigap plans in the available, and we help you understand plan options and how to explain them.
As trusted insurance advisors, you have an opportunity to educate clients on how a Medicare supplemental insurance plan can ensure their hard-earned savings are protected from runaway medical costs in retirement.
This is the year you can boost your career by getting serious about offering Medigap and its many options to your members. Find out how to partner with Agility by visiting us on our Medicare Contracting page or contacting us at 866-590-9771.
