MediGap life insurance companies

[MichaelB]

Looking at Medigap policies, specifically F Hi-Deductible, there are 9 policies available where I live, and 7 of these are offered by life insurance companies. Only 2 health insurers and both are more expensive - 6 of the 7 insurers have lower premiums.

What is the downside to getting a MediGap policy from a life insurance company? After all, there's little to no synergy with the rest of their business, and it makes no sense for them to invest in a robust back office claims management system just for this business. Does this policy become problematic down the road if one has a fair number of claims or makes a large claim? Are they more likely to deny, delay or otherwise try to avoid paying a claim - vs a traditional insurer?

[CRLLS]

The only difference between F-HD providers is premium cost and customer service. All F-HD plans are required to cover the same things with the same coverage. If Medicare approves the claim, the Medigap company cannot deny it. Look at future premium costs too. One company may charge less now but more later i.e. Age related pricing vs community pricing. (or something like that) And who knows what costs are going to be when 2020 arrives and F-HD is closed to new members.

But don't underestimate the service part.

[Katsmeow]

FWIW I was recently looking at my mom's medigap policy and I noticed it was with a life insurance company and that surprised me. But, when I looked at it in more detail I found that this particular life insurance company is a Cigna company and Cigna is, of course, well known in health insurance.

Regardless I agree that all supplements of the same plan have to provide the same coverage (my mom's plan, FWIW, is plan G).

[MichaelB]

Thanks. I know all policies are the same and have read that in Florida all policies are community rated, although I need to confirm this last item. Some of the price differences are pretty big.

I guess my main concern is if there is a difference in how claims are handled between health insurance companies and life insurers. For sure, once Medicare approves a claim it must be paid, but we all know that’s no guarantee it will be paid, at least without lots of hassle. There is absolutely no info available that rates their service levels or compares their overall claims handling satisfaction.

[CRLLS]

Quote:

Originally Posted by MichaelB Thanks. I know all policies are the same and have read that in Florida all policies are community rated, although I need to confirm this last item. Some of the price differences are pretty big. I guess my main concern is if there is a difference in how claims are handled between health insurance companies and life insurers. For sure, once Medicare approves a claim it must be paid, but we all know that’s no guarantee it will be paid, at least without lots of hassle. There is absolutely no info available that rates their service levels or compares their overall claims handling satisfaction.

And that's where the customer service come into play I can't say anything bad about BCBS of IL. I have read of service issues with Gerber and Mutual of Omaha. You may want to check that out if you are considering going in that direction. Beyond that I have no suggestions.

[MichaelB]

Quote:

Originally Posted by CRLLS And that's where the customer service come into play I can't say anything bad about BCBS of IL. I have read of service issues with Gerber and Mutual of Omaha. You may want to check that out if you are considering going in that direction. Beyond that I have no suggestions.

Totally agree. There seems to be a lot of anecdotal feedback around the web on these insurers, but I haven't found anything that would provide a more objective and reliable comparison. The risk, or course, is the guarantee issue rules mean we only get one choice, so one needs to choose wisely.

[ShokWaveRider]

Michael: What type of pricing spread are you finding?

[Katsmeow]

I haven't seen any problem with my mom's claims being paid. Again, while the insurer is shown as a life insurance company it is actually a Cigna company. So you may want to check and see who owns the insurers you are considering.

[kaneohe]

fwiw: https://www.bluewaveinsurance.com/carrier-reviews/

you might be able to find others to compare

[MichaelB]

Quote:

Originally Posted by ShokWaveRider Michael: What type of pricing spread are you finding?

This page will let you see all the plans and rates available by county / zip code in Florida. https://apps.fldfs.com/mcws/cwssearch.aspx

[ShokWaveRider]

Quote:

Originally Posted by MichaelB This page will let you see all the plans and rates available by county / zip code in Florida. https://apps.fldfs.com/mcws/cwssearch.aspx

All the plans in my county (St Johns) say they are underwritten. I thought if one applied in the correct timeframe after applying for Medicare, they had to guaranteed issue.

[MichaelB]

Quote:

Originally Posted by ShokWaveRider All the plans in my county (St Johns) say they are underwritten. I thought if one applied in the correct timeframe after applying for Medicare, they had to guaranteed issue.

All MediGap plans are guaranteed issue when you first become eligible for Medicare.

On the screen that follows the map, when it asks for search criteria, what age do you input?

[ShokWaveRider]

Quote:

Originally Posted by MichaelB All MediGap plans are guaranteed issue when you first become eligible for Medicare. On the screen that follows the map, when it asks for search criteria, what age do you input?

65.

[MichaelB]

I pulled up that county, inputted a random zip code and got 5 pages of MediGap plan detail. There's no indication that any are underwritten and guarenteed issue is required by Medicare. Where do you see the underwriting requirement?

[ShokWaveRider]

Quote:

Originally Posted by MichaelB I pulled up that county, inputted a random zip code and got 5 pages of MediGap plan detail. There's no indication that any are underwritten and guarenteed issue is required by Medicare. Where do you see the underwriting requirement?

If you select any of the results (Click on the price) it is at the bottom of the first spreadsheet shown.

[MichaelB]

Quote:

Originally Posted by ShokWaveRider If you select any of the results (Click on the price) it is at the bottom of the first spreadsheet shown.

All MediGap plans that are available in your area are guaranteed issue when you first becomes eligible, and the eligibility period lasts 6 months. After that, insurers have the right to underwrite plans. So yes, the plans are all underwritten, but you still have guaranteed issue.

[ShokWaveRider]

Quote:

Originally Posted by MichaelB All MediGap plans that are available in your area are guaranteed issue when you first becomes eligible, and the eligibility period lasts 6 months. After that, insurers have the right to underwrite plans. So yes, the plans are all underwritten, but you still have guaranteed issue.

Got it.

[REWahoo]

Quote:

Originally Posted by ShokWaveRider If you select any of the results (Click on the price) it is at the bottom of the first spreadsheet shown.

That does not show the correct Open Enrollment information. Even the state's Medicare Supplement Insurance brochure (click the "Consumer Guide" tab at the top of the page) states:

Quote:

The best time to buy a Medigap policy is during your Medigap Open Enrollment Period, when you have the right to buy any Medigap policy offered in your state. This 6-month period begins on the first day of the month in which you’re 65 or older and enrolled in Part B

[aja8888]

My Medigap plan is with Aetna who sells all kinds of insurance. Apparently, they have a sub carrier that handles the Medigap claims. I never have had any issues with claims.