When you turn 65 and become eligible for Medicare, you will have the option to enroll in a Medicare Advantage (MA) plan or a Medicare Supplement plan (also known as Medigap). About one-third of Medicare enrollees choose an MA plan, while 15 million Americans currently have a Medigap plan which offers complete freedom to see any medical professional who accepts Medicare. To make the best decision and save money, consider the following tips:
- Don’t overpay, as prices for Medigap insurance vary significantly and it’s common to find one company charging twice as much as another for identical coverage.
- Shop for rate stability, as some insurance companies are new to the Medigap business and may not have real experience on which to base their rates, causing above-average rate increases in future years.
- Take advantage of discounts, as many Medigap insurance carriers offer spousal and/or household discounts which can add up to hundreds of dollars a year.
- Benefit from savings and points, as some insurers offer discounts for automatic payments, annual payments, and credit card payments which can add up to significant savings over time.
- Compare your options by seeking out a local Medicare Insurance agent who can offer unbiased recommendations and comprehensive options.
