Medigap - Direct or Agent?

[Route246]

Quick question. Sorry if this has been answered before. I couldn't find an answer with a quick search.

An agent called me and spent quite a bit of time explaining Medigap and Medicare Advantage. Straight answers, to the point, little time wasted, etc. Explained his role as an agent, etc.

Question: Any advantages or disadvantages with using an agent (he was straight and said he gets a commission if I go through him) vs going direct to the provider? Anything lost or gained or is it the same or near same pricing, etc.?

FYI, I'm leaning towards AARP/UHI because I'm familiar with UHI in the past with myself and my parents' plan and the fitness memberships provided are optimal in my location. Haven't explored in detail the other plans in my area yet.

 

[MichaelB]

There’s no disadvantage to using an agent, no additional cost to you, the fee is built into the standard price.

 

[Route246]

There’s no disadvantage to using an agent, no additional cost to you, the fee is built into the standard price.

Thank you. I was figuring that is the way it is but I appreciate your quick response.

 

[audreyh1]

I’m going direct since I know exactly what I want. DH went through Boomer Benefits. They did a hard sell on the slightly cheaper Mutual of Omaha plan, but DH stuck to his guns and said we didn’t want to deal a company that regularly closed the books. So they somewhat reluctantly signed him up for the UHC/AARP plan he wanted, plus a Part D plan.

I plan to sign up directly as I don’t want to deal with a broker pushing alternatives. Plus I’m familiar with the process and sticking with DH’s current choices.

 

[CRLLS]

There is no financial difference between going with an agent or going direct. There is a question of whether the agent is presenting all of your options and whether they are biased toward those with a higher commission. Only you can decide if they are working in your best interest.

If it matters at all, we applied directly with AARP/UHC since we knew the various options and had made our decision. Our state SHIP (Illinois) has a very good unbiased website with prices to compare. I would check to see if your state has the same.

 

[Gotadimple]

Quick question. Sorry if this has been answered before. I couldn't find an answer with a quick search.

An agent called me and spent quite a bit of time explaining Medigap and Medicare Advantage. Straight answers, to the point, little time wasted, etc. Explained his role as an agent, etc.

Question: Any advantages or disadvantages with using an agent (he was straight and said he gets a commission if I go through him) vs going direct to the provider? Anything lost or gained or is it the same or near same pricing, etc.?

No difference in premium amounts as an agent commission is built into the rate. You may want to reward this agent, if they represent the insurer you want, for their helpful information by signing up through them.

Check with your state insurance commissioner they should have a unit called SHIP. They are staffed by volunteers who make recommendations on Medicare products including helping a senior enroll in Medicare. You get unbiased advice based on your personal situation.

 

[Montecfo]

Using an agent if very helpful and you will see more options.

It is a good approach and costs you nothing.

 

[MichaelB]

The agent motivation is a good point. While there is no direct cost to the policyholder, an agent may steer a client to one policy over another based on commission. Something to keep in mind.

 

[big-papa]

I’m going direct since I know exactly what I want. DH went through Boomer Benefits. They did a hard sell on the slightly cheaper Mutual of Omaha plan, but DH stuck to his guns and said we didn’t want to deal a company that regularly closed the books. So they somewhat reluctantly signed him up for the UHC/AARP plan he wanted, plus a Part D plan.

I plan to sign up directly as I don’t want to deal with a broker pushing alternatives. Plus I’m familiar with the process and sticking with DH’s current choices.

Not familiar with the term "regularly closed the books". Can you elaborate?

Cheers
Big-Papa

 

[Texas Proud]

There’s no disadvantage to using an agent, no additional cost to you, the fee is built into the standard price.

I will disagree... on MOST policies there is no difference, but on my UHC plan going direct was 15% or more cheaper...


I was gong to go through an agent but when this came up I did not see any value in doing so as I plan to have this plan till I pass... so no need for an agent going forward...

 

[Jimmie]

Using an agent if very helpful and you will see more options.

The Medicare website, when searching for supplement plans within a zipcode, will show ALL insurance companies that have plans available to be purchased. An agent is not going to be able to provide more options than what the Medicare website will show. An agent can provide their perspective on any of the insurance companies that are available within that zipcode. As others have pointed out, be careful of agents that do the "hard sell" on insurance companies that pay them the highest commission. Your state's SHIP program is a great place to start.

 

[CRLLS]

I will disagree... on MOST policies there is no difference, but on my UHC plan going direct was 15% or more cheaper...


I was gong to go through an agent but when this came up I did not see any value in doing so as I plan to have this plan till I pass... so no need for an agent going forward...

I have never heard of that. In fact, everything I read tells me that cannot happen. Are you sure certain the difference in price was not comparing the infamous, UHC Plan X direct vs Plan X+ (renew active) thru the broker? That Renew Active used to be included but now UHC offers the same plan letter with and without in some states.

 

[OldShooter]

Our agent has studied and understands a large number of plans and their features. The "best" plan depends on what the customer needs and what the customer will use. In our case we are in a BCBS Advantage plan specifically because it covers us when we are traveling out of the US. Apparently this is somewhat uncommon.

It is difficult for me to believe that an individual customer can do all of their own research and be sure they have made the right pick. That said, I'm sure that not all agents have done the kind of study that ours has. She got into that business somewhat late, but she has been a family friend for much longer. So we trust her.

 

[audreyh1]

Not familiar with the term "regularly closed the books". Can you elaborate?

Cheers
Big-Papa

This has been discussed on many Medigap threads, but some companies such as Mutual of Omaha will occasionally stop selling Medigap plans under one company name in the state and start selling cheaper plans under a slightly different company name in the state. They have closed the book and opened a new one for that state. So you have an older cohort in the closed plan and prices rise more quickly as no more younger folks are being added to it. Meanwhile the new plan is more aggressively priced to compete with other companies. Folks who can pass the underwriting and switch to a different plan may do so, but the sicker folks are stuck. This in the spirit of Medicare should be illegal, but in practice it’s a loophole and several companies take advantage of it.

In states that let you switch between Medigap plans once a year (but constrained to keeping the same letter number) this is not a problem. But many states do not have this option and after the first 6 months you are stuck with faster increasing rates unless you can pass underwriting and switch to a different plan.

 

[audreyh1]

Our agent has studied and understands a large number of plans and their features. The "best" plan depends on what the customer needs and what the customer will use. In our case we are in a BCBS Advantage plan specifically because it covers us when we are traveling out of the US. Apparently this is somewhat uncommon.

It is difficult for me to believe that an individual customer can do all of their own research and be sure they have made the right pick. That said, I'm sure that not all agents have done the kind of study that ours has. She got into that business somewhat late, but she has been a family friend for much longer. So we trust her.

The Medicare website will give you a list of all the plans available to you in your county and their pricing. So that’s the biggest research item done for you.

For traditional Medicare, all Medigap plans with the same letter are required to cover the same thing. So you don’t have to figure out the difference between plan G at company X versus Y. You do have to understand the different standardized plan letters and what they mean. Again Medicare spells this out very clearly, has a good clear chart and their getting started brochure is excellent. If you aren’t willing to read that or find it too confusing or have a hard time picking a plan letter then you probably need a broker.

Then it’s a matter of age rated versus community rated plans and understanding how price increases will occur over time based on age and other factors. This is where a broker can explain some things better perhaps, but I suspect they don’t usually discuss it.

However a broker is incentivized to push one company’s plans over another. That’s just the way it is. It was clear to us that Boomer Benefits was pushing Mutual of Omaha hard and reluctant to sign folks up for UHC/AARP pointing out that it was more expensive.

Reputations of the companies offering Medigap plans - well I have gotten that valuable info here. How many brokers are going to take that into account versus the incentives they are currently receiving?

 

[gianmatt]

Brokers are also incentivized to push Plan G, since that is the most expensive option. I like Plan G, but G-HD or N might work for you. There's a guy on YouTube with a bad toupee who portrays himself as the Medigap expert, but he says some things that aren't true.

 

[Route246]

All good information here. Thank you all for that.

The agent I talked to said Blue Shield California is his recommendation but he disclosed that he recommends it because his commission is slightly higher. Just for that reason I am more comfortable giving him my business.

There is no financial difference between going with an agent or going direct. There is a question of whether the agent is presenting all of your options and whether they are biased toward those with a higher commission. Only you can decide if they are working in your best interest.

If it matters at all, we applied directly with AARP/UHC since we knew the various options and had made our decision. Our state SHIP (Illinois) has a very good unbiased website with prices to compare. I would check to see if your state has the same.

My feeling is this, that is, rewarding him for talking straight, disclosing his preferences are based on a slightly higher commission but he did not want to discourage me from choosing an alternative since as everyone says, the plans are spelled out on the Medicare website and it is just a matter of personal requirements.

No difference in premium amounts as an agent commission is built into the rate. You may want to reward this agent, if they represent the insurer you want, for their helpful information by signing up through them.

Check with your state insurance commissioner they should have a unit called SHIP. They are staffed by volunteers who make recommendations on Medicare products including helping a senior enroll in Medicare. You get unbiased advice based on your personal situation.

Using an agent if very helpful and you will see more options.

It is a good approach and costs you nothing.

The Medicare website is very helpful. I've printed out quite a bit from there and the wife and I are studying. No decision required until I retire but it may be soon and could be later.

The Medicare website, when searching for supplement plans within a zipcode, will show ALL insurance companies that have plans available to be purchased. An agent is not going to be able to provide more options than what the Medicare website will show. An agent can provide their perspective on any of the insurance companies that are available within that zipcode. As others have pointed out, be careful of agents that do the "hard sell" on insurance companies that pay them the highest commission. Your state's SHIP program is a great place to start.

We looked at all of the plans and F (not available to us) was our original choice. G is our second choice.

Brokers are also incentivized to push Plan G, since that is the most expensive option. I like Plan G, but G-HD or N might work for you. There's a guy on YouTube with a bad toupee who portrays himself as the Medigap expert, but he says some things that aren't true.

 

[fh2000]

All good information here. Thank you all for that.

The agent I talked to said Blue Shield California is his recommendation but he disclosed that he recommends it because his commission is slightly higher. Just for that reason I am more comfortable giving him my business.

First I first turn 65, I called Boomer Benefits but their do not have contract with Blue Shield of California, which was the cheapest for new members, by far. I went to another agent who could sign me up with them.

Later, I realized I could search on Medicare.gov to see the cheapest plan G in my zipcode, so a year later, I swiched on my own when California birth day rule applies to me.

 

[CardsFan]

First I first turn 65, I called Boomer Benefits but their do not have contract with Blue Shield of California, which was the cheapest for new members, by far. I went to another agent who could sign me up with them.

Later, I realized I could search on Medicare.gov to see the cheapest plan G in my zipcode, so a year later, I swiched on my own when California birth day rule applies to me.

This one of the issues with agents. They don't all have contracts with everyone. Do your homework on line. If the agent can get the same deal you pick, I think it cannot hurt to use them.

I found this out particularly with Via Benefits (have to use them to get $2,800 a year from old employer).

We found a plan D that would save DW $200-300/year, but Via did not have a contract for THAT plan (the had other contracts with the same agency for other plans, so I don't get that). Any way, since our other plans exceeded the value of the benefit, we just went direct for DW's plan D.

 

[Texas Proud]

I have never heard of that. In fact, everything I read tells me that cannot happen. Are you sure certain the difference in price was not comparing the infamous, UHC Plan X direct vs Plan X+ (renew active) thru the broker? That Renew Active used to be included but now UHC offers the same plan letter with and without in some states.

It did not include active... and it was the same plan letter... I did not go with the active as it was a good amount higher and I have a cheap gym...



I did mention to them that their rate was higher than what I saw on the UHC website and they said they were worth the extra money... my premium was even cheaper than that on the UHC website as I used the rate I got from a letter sent to me...


Reading here it seems they have 3 age schedules and who knows what schedule they quoted..


Forgot to add.... they did NOT give me a UHC quote at first... I asked about it and they said they did not offer it but would give me a quote..

 

[DrRoy]

I have just entered my sign-up window. My former Megacorp yesterday informed me that in order to maintain their funding support for Medicare I am required to go through their selected agent Via Benefits. I'm calling them today to see what the deal is.

 

[CardsFan]

I have just entered my sign-up window. My former Megacorp yesterday informed me that in order to maintain their funding support for Medicare I am required to go through their selected agent Via Benefits. I'm calling them today to see what the deal is.

That is pretty common when the former employer is paying a stipend though an HRA to cover some of the cost. I also had to use Via. For $2,800 a year in free money I can play their game.

Also, you can set it so it is all automatic. No need for you to submit anything, just an auto-deposit to your checking account.

 

[Texas Proud]

I have just entered my sign-up window. My former Megacorp yesterday informed me that in order to maintain their funding support for Medicare I am required to go through their selected agent Via Benefits. I'm calling them today to see what the deal is.

The question is can you buy a medigap plan? My sisters and friends that I know who have retired with benefits for insurance have to choose an Advantage plan... no possibility for a gap plan..

 

[Scuba]

We already knew we wanted Traditional Medicare Plan G and were almost sure we wanted the AARP/UHC Medigap plan based largely on learnings from this forum as well as other research. We spoke with two brokers and they each had exactly the same recommendation which was consistent with what we already thought. I have appreciated having an agent to provide a bit of “hand holding.”

 

[DrRoy]

The question is can you buy a medigap plan? My sisters and friends that I know who have retired with benefits for insurance have to choose an Advantage plan... no possibility for a gap plan..

Pretty sure that I can. I have a call set up with them in about two weeks. Waiting for my gov. application to be accepted.