With all the holiday cheer upon us, sometimes it’s hard to bother evaluating your health insurance. Heck, it can be downright annoying when agents call you a few days before a large family gathering. However, I would like to emphasize the importance of staying on top of what you are spending on your health insurance. You’ve seen the Geico commercials, right? Switch now, save big! While I don’t sell auto insurance, this same strategy applies to most insurance. My article is a wake-up call for those who have Medicare supplement policies. Next, I will discuss my acronym, CAPwhich represents 3 characteristics of Medicare supplement insurance that will help you evaluate the competitiveness of your policy.
The first letter of my acronym is “against,” Meaning Conveyor. What company is your policy with? it matters Although Medigap plans are standardized, providers may charge different rates, in different ZIP codes. For example, in my zip code, a local carrier is the most competitive, however, in some northern zip codes, this same carrier has higher and less competitive rates. The bottom line? Call an agent to see if the carrier he’s with is the best in his zip code; you may need to call multiple agents to get the correct answer.
“HAS” It represents policy age. How long have you owned this particular policy?
Do you want to hear something scary? I just got off the phone with an older person who has had the same Medigap plan for over 20 years.
It kills me when I hear someone say “I’ve had the same policy for years” with pride.
Every year, his rates increase, despite his continued good health. Every few years it’s financially smart to compare your rates to the rates of other companies in your zip code. If you bought a policy with one of the major companies in your area, you may have to wait 3-5 years before it’s worth switching. Although, what I have found is that many people are cheated in policies with insurers that are not the most competitive, leaving these policyholders without knowing how much they could be saving if they had chosen the right insurer. How can you make sure this doesn’t happen to you? Compare prices, use the power of consumerism to make sure you get the best policy.
“P” It represents Standard Plan. Many people buy a Plan F, because it is more complete in its coverage. However, some people have never heard a word about the other types of plans available. For example, Plan G is identical to Plan F except that it does not include the $147 Part B deductible (2013-2014). Many people switch from Plan F to Plan G and end up saving hundreds, even with the $147 factored into the equation.
Now is the time to evaluate your Medicare supplement policy. Use my acronym when deciding if your policy is still competitive, or if you’re buying a policy for the first time, this same acronym can help you make sure you’re buying the best policy in your area! That gentleman I spoke to could save over $1,000 a year by switching. How much could you save? It is definitely worth finding out!
