For most types of insurances the company name and rating are very important. The Medicare Supplement, also known as Medigap, is an exception from this rule. For Medigap, the company name and rating are NOT really important. The reason is the standardization of plans and centralization of processing. Read below.
Why the Medigap company name and rating are NOT Important? – Standardized Plans
- All Medigap plans are standardized. There are 10 standard plans, defined by their letter, each of them with a specific set of benefits. A particular Medigap plan (for example, Plan F) from one company is THE SAME as the plan identified by the same letter from any other company. The difference is the price, and it may be quite substantial.
- As in Original Medicare, there is no network for any Medigap plans. As long as your doctor/hospital accepts Medicare, he/she is obliged to accept any standardized Medigap plan from any company.
Why the Medigap company name and rating are NOT Important? – Centralized Claims Process
- Medigap claims are processed through the centralized Medicare “crossover” system. The same system is used by ALL Medigap companies. It effectively links Medicare Parts A and B with Medigap plans, and assures the same payment schedule and the same payment amount no matter what the Medigap company is.
- As a result there is just ONE Claims Processing System. And because all companies use it, the role of specific company name and rating in the claims process is very limited.
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