We often buy products from large Medigap companies because brand names make us feel good about our purchase. But did you know that some lesser known companies may offer a better value for the same exact product? If you’re shopping for Medicare Supplement insurance, you might be surprised by who sells the best Medigap insurance plans. In this post, explain why the best companies don’t always have to be a “big name brand.”
Who Sells the Best Medigap Insurance Plans?
In the world of Medicare Supplement insurance, big name carriers are always familiar. They have deep pockets for marketing, so you’re constantly seeing their advertisements. However, there are plenty of Medigap companies that you may not recognize — that you should. We’ll quickly review the top big brand companies as well as some unfamiliar companies that you need to be aware of. Some of these companies may actually be the best option for you.
Best Big Name Medigap Insurance Companies
REMEDIGAP works with most of the top Medigap insurance companies in 2020. You’ll probably recognize most of these big brand companies. This list of Medigap companies shows just a few of the big name companies that we offer:
Best Medigap Insurance Companies that you haven’t heard of
There are many lesser known companies in the Medigap market that offer the same exact plans as the “Big Name” companies.
- American Continental Life Insurance Company
- American Retirement Life Insurance Company
- Thrivent Financial
- Bankers Fidelity
- GPM Health & Life
- Loyal American
- Manhattan Life
- United World Life Insurance Company
- Western United Life Insurance Company
You certainly don’t want to rule out a small company because you don’t recognize its name.
Your Doctor Doesn’t Care What Medigap Carrier You Use
Many people worry their provider won’t take a lesser known Medigap plan. Thanks to Medicare billing procedures, you don’t have to check with your doctor to see if they accept your Medigap plan.
Providers don’t file claims with Medigap insurance companies, so the insurance carrier name on your ID card doesn’t mean a whole lot to them.
The provider always sends your claim to Medicare. They’ll never send it to your Medigap company. Even if your doctor’s office has never heard of a Medigap company, your claims will still be paid.
Medicare’s payment process is simple. Medicare reviews your claim and based on billing codes decides to approve or deny the service. If approved, Medicare will pay its portion and then send the claim to your Medigap company.
The Medigap insurer doesn’t have the authority to make decisions about your claims. If Medicare pays, then your Medigap company will pay according to the benefits outlined in your Medigap plan.
So, regardless of the insurance company size or popularity, your provider is going to get paid.
All Medigap Policies are Regulated by Federal and State Laws
Medicare Supplement companies sell standardized Medigap plans. CMS (Centers for Medicare and Medicaid Services) standardized all Medigap Plans in 1990. That means that every insurance company who sells Medigap Plans is not allowed to make changes to plan benefits.
For example, Medigap Plan F has a certain outline of benefits assigned to it.
Those benefits CANNOT be modified or deleted. It’s the law. So, if you buy Medigap Plan F with Cigna or Continental Life, your benefits are the same.
Consistency among plans means your claims will be paid by the insurance carrier regardless of who it is. They’re all required to pay claims according to your Medigap Plan benefit schedule.
The standardization of Medigap benefits is one of the safety nets put in place to protect Medicare Beneficiaries. Regardless of which insurance carrier you choose, this protection should offer you peace of mind.
Medicare decides what claims are paid – Not the insurance companies
Another safety net put in place by CMS is how your claims are paid. It doesn’t matter which insurance carrier you have a policy with, all claims are paid the same.
Insurance carriers don’t have a medical expert who makes decisions about your claims. If Medicare pays the bill, then your Medigap company will pay its portion.
It’s that simple.
You may have family members or friends who rave about their brand name company because they always pay the bills. That’s great and all, but it’s not because the company is better than the rest. It’s because they’re required by law to pay their portion of your claim.
Because of CMS regulations, even lesser known insurance companies pay your claims in a timely manner. The process is streamlined. So once Medicare processes the claim, it’s electronically passed to the Medigap company.
Remember, the Medigap company is not making any decisions about whether your claim should be paid.
If Medicare pays, the Medigap carrier pays too – regardless of their name and popularity.
Rates Can Be Lower with Lesser Known Medigap Companies
Medicare Supplement rates vary from state to state. Large brand name Medigap companies can offer competitive rates in some areas, but so can the smaller Medicare Supplement companies.
Every insurer has a team of actuaries who crunch numbers and make premium recommendations based on risk, inflation, marketing, and more.
You might think that larger companies always have better rates. But often we find the lesser known Medigap companies offer better rates than the larger companies.
How can small Medigap companies offer better and more competitive rates?
Think about why those brand names are so popular. It’s all about marketing. And, marketing isn’t cheap. Medicare Supplement insurance carriers have to staff a marketing department and ultimately pay for advertising.
Big brand Medigap companies spend an enormous amount of money on advertising. They pay for television commercials, online ads, radio commercials and mail. Those high advertising costs are typically passed on to you. Policy holders may be paying higher premiums for brand name advertising – not for better Medicare Supplement insurance benefits.
There’s less name recognition with smaller brands, but they also don’t spend as much money on advertising costs. Remember, the lesser name companies have the same Medigap benefits as the big name brands.
Still wondering who sells the best Medigap insurance? Hopefully it’s clear that name recognition shouldn’t be your only deciding factor.
Both Large and Small Medigap Carriers have Financial Stability
An unknown name can make you feel uncertain about a company. That shouldn’t be the case with Medigap. In the world of Medicare Supplement insurance, there are hundreds of insurance companies.
Out of the hundreds of Medigap companies, you may only be familiar with four or five of the large national brands. Rating companies like A.M. Best provide reliable financial information on all companies.
When A.M Best gives a company an A or B rating and indicates a stable financial outlook, you can feel certain that the insurance carrier is financially strong and capable of providing coverage outlined in your policy.
It goes without saying that well known brands probably have strong financial ratings based on their size. But don’t count out the lesser known companies. Their financial strength is often just as strong.
With all that said, there are consumers who are not willing to trust the lesser known Medigap insurance carriers. Big name brands mean a lot to some people.
That’s okay as long as you don’t mind possibly paying hundreds of dollars more a year for a brand name company. This can add up to thousands of dollars over time.
To be fair, lesser known carriers are also vulnerable to rate increases too. But, most of the time when we talk to someone who has had a Medigap plan for a few years, their high priced premium is with a name brand. Not always…but most of the time.
If you are serious about researching who sells the best Medigap insurance plans, then don’t pass an opportunity to compare rates from lesser known companies. It’s one of the biggest Medicare mistakes.
By working directly with us at REMEDIGAP you will have a personal agent dedicated to help you throughout the entire Medicare process – from education, applying, and ongoing service. Perhaps you have many questions or none at all. Either way, we’ll customize our approach based on your needs. Our ongoing service makes sure you’re getting the best value with your Medigap plan from year to year.
So what are you waiting for? Just give us a call at 888-411-1329 or fill out our free Medigap quotes form on this page. It’s an easy way to see just what we can do for you!
Thank you for reading our article Who Sells the Best Medigap Insurance Plans? Please chat with us online or leave a comment below.
Joann Quinn is the Chief Compliance Officer and Cofounder of REMEDIGAP. She is a licensed Medicare agent in 47 states. Her main role is to provide essential resources and tools to educate eligible individuals on Medicare. Joann provides helpful Medicare education to thousands of viewers with our popular REMEDIGAP YouTube channel. With expertise in Medicare Supplement, Medicare Advantage, and Medicare Part D, Joann is a highly knowledgeable and sought after Medicare insurance professional.