DOES THE NAME OF THE MEDIGAP COMPANY MATTER

Michael T. Braden August 25, 2025 Medicare Supplement

DOES THE NAME OF THE MEDIGAP COMPANY MATTER

This is a question we receive from our clients frequently every week. Most people are familiar with household names like Aetna, AARP, UnitedHealthcare, BCBS, Cigna, and Humana. Still, these companies make up only a small share of those that offer Medicare Supplement/Medigap plans nationwide.

Braden Medicare Insurance Poster About Arizona Medicare Supplement Plans

DOES THE NAME OF THE MEDIGAP COMPANY MATTER

Medicare Supplement Insurance Carriers do not have the same clout that you are used to with all of your Health Insurance plans in the past, before enrolling in Medicare.

FOR EXAMPLE:

1. All bills from all providers are sent to Medicare.

2. Medicare, and only Medicare, decides which bills will be paid.

3. Every Medigap/Medicare Supplement Carrier must pay their percentage once Medicare Pays. In fact, Medicare sends a note to each Medicare Supplement Carrier how much they owe, and then they send the payment to the provider.

4. If a Medicare Supplement Carrier goes out of business or stops offering Medicare Supplement/Medigap plans, CMS (Medicare) steps in and provides each policyholder with a 6-Month Guaranteed Issue Rights Special Enrollment Period to enroll in any plan without answering health questions.

5. If you find a great rate with a Medigap carrier you haven't heard of, you can still trust them, because Medigap plans are standardized and must offer the same coverage across all 50 States.

6. You can use the company's financial ratings (such as A.M. Best, Moody's, and Standard & Poor's) to assess its economic strength and compare it with other carriers.

7. It is essential to verify if you qualify for any available discounts. Your Broker can help you with that.

8. Watch out for some companies like AARP and CIGNA that offer competitive initial rates, but their discounts drop 1-2% a year, so at the end of nine years, you are no longer getting a monthly premium discount. This is another reason why it just makes good common sense to work with a local Independent Medicare Broker in your area.

9. Compare the length of time each company has been offering plans in your state.

   
   

In 1990, Medicare standardized all Medigap plans. This means the Summary of Benefits is the same across all Plan G, Plan N, Plan F, and similar plans in each state. The only difference could be the rates and discounts each company offers in each state where it operates. It is up to them to decide whether they provide any additional benefits, such as Fitness Club Memberships. Most Medicare Supplement plans do not include a complimentary health club membership. Many offer options to join a club for an additional monthly fee of approximately $35.

QUITE OFTEN YOU WILL GET DEEPER DISCOUNTS AND LOWER PREMIUMS WITH OTHER LESSER-KNOWN COMPANIES

Think about it – if you are a big company like CIGNA or Humana and you run a lot of television ads to market your products, someone has to pay for that. Costs are generally passed on to policyholders through insurance premiums. Smaller brands have lower recognition but likely spend far less on advertising. This means you can often secure competitive rates on a policy from a lesser-known insurance company.

MEDICARE HAS THE FINAL WORD ON WHAT BILLS ARE PAID. YOUR SUPPLEMENTAL CARRIER HAS NO PART IN THE DECISION-MAKING PROCESS.

If Medicare covers 80% of a claim, your Medigap company MUST pay the remaining 20%. They can’t decline to cover these expenses, so we rarely run into slow-pay issues with Medicare insurance companies. They pay their bills as soon as Medicare pays its share, and they receive the remainder. You need not worry that just because you haven’t heard of a company, they aren’t reliable.

That said, I am always shocked and amused that many intelligent people will pay $300 more per year for a name-brand company. If your friend has a Medicare supplement that pays well and on time, that’s generally not because the insurance company is excellent. It’s due to the simple fact that Medicare claims are passed on for payment to your Medigap company like clockwork. Paying on time is an industry expectation.  If you have an opportunity to save on premiums by choosing one of these off-brand insurance companies, give it a try. There is little risk involved as long as the company has decent ratings.

Here at Braden Medicare, we happily offer quotes from over 40 of the best and highest-rated companies in America.

WRAPPING THINGS UP

• Please keep an open mind when evaluating quotes from each carrier.

• There are well-known insurance companies and those that are less well-known; however, all Medigap plans are standardized, and carriers must offer the same coverage.

• To compare insurance carriers, consider their financial rating to assess their reliability.

• Work with an Independent Medicare Broker in your area to ensure you are maximizing your discounts.

• Since Medicare determines what will be approved, you shouldn’t have any issues with your Medigap carrier.