Are Medicare Supplement company ratings important?

Are Medicare Supplement company ratings important?

For most types of insurances, the company name and rating are essential. The Medicare Supplement, also known as Medigap, is an exception from this rule. For Medicare Supplement company ratings are NOT really important. The reason is the standardization of plans and centralization of processing.  Read below.

Why are the Medicare Supplement company ratings 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 Medicare Supplement plan (for example, Medigap 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 from vendor to vendor.
  • 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 Medicare Supplement plan from ANY company.

Why are the Medicare Supplement company ratings NOT Important? – Centralized Claims Process

  • Medigap claims are processed through the centralized Medicare “crossover” system. ALL Medicare Supplement companies use the same system. It effectively links Medicare Part A and Part B with Medicare Supplement plans and assures the same payment schedule and the same payment amount no matter what the Medicare Supplement 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 minimal.

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