Best Medicare Supplemental Insurance

You can only get a Medicare supplemental insurance plan if you have Medicare Part A and Part B. That means you must also be 65 years or older. Once your Medicare Part B coverage starts, you have six months to buy a Medigap plan. Do note that if you and your spouse both want a Medicare supplemental insurance policy, you must buy them individually, and they must come from a company in your state of residence.

Medicare Advantage vs. Medicare Supplement

A Medicare Advantage plan – also known as Medicare Part C, is when you get your plan through a private company instead of going through Original Medicare. Medicare Advantage plans are approved by Medicare, and Medicare pays these private companies to pay your Medicare benefits.

“A Medigap policy is different from a Medicare Advantage Plan. Those plans are ways to get Medicare benefits, while a Medigap policy only supplements your Original Medicare benefits,” said Ethan Pickner of AZ Health Insurance Brokers. If you have a Medicare Advantage Plan you cannot also have a Medigap plan. However, if you have Original Medicare, you can use a Medigap plan with it.

» MORE: Medicare vs. Medicaid

Medigap may sound beneficial, but before you sign up for a monthly premium, consider both the pros and cons of taking on a supplemental policy.

There are numerous companies offering Medicare supplemental insurance plans, which can make it even more overwhelming when deciding which one makes the most sense. “Since Medigap policies are standardized across the board, you want to look for carriers that have a consistent annual trend when it comes to their renewal rates and watch out for carriers that lowball the rate when you first enroll and then jump rates by 9% to 20% at each renewal,” said Pickner.

“Go with a carrier you are comfortable with and speak with a broker, they can give you insight on the carriers. Meaning if the carrier is new to the market or has been around for the last 20-plus years.”

As you research your plans, keep these considerations in mind; they can help you narrow down your choice.

To purchase Medicare supplemental health insurance coverage, you must be at least 65, have Medicare Part A and B and purchase coverage during your Medigap open enrollment period. Medigap open enrollment starts on the first day of the month you are 65 or older and enrolled in Medicare Part B and lasts six months.

Because you can enroll in Medicare Part B starting three months before you turn 65, you may have enrolled in Part B but may not yet be able to purchase a Medigap plan.

Also, be aware that if you have a preexisting condition, Medigap coverage may not cover costs for the condition for up to six months. For this reason, experts agree you should enroll in a Medigap plan as soon as you can.

The best time to buy a Medigap policy is during the Medigap open enrollment period. Buying within the enrollment window means:

• More choices and lower costs: You generally have more policy options and get better prices.
• No higher costs for preexisting conditions: Even if you have a preexisting health condition, you pay the same price as someone who doesn’t have health problems.
• Guaranteed right to buy: Your ability to purchase a Medigap policy is always guaranteed during the open enrollment period.

What if you buy outside of the enrollment period?

If you apply for Medigap coverage outside your open enrollment period, there's no guarantee an insurance company will sell you a Medigap policy if you don’t meet the medical underwriting requirements, unless you're eligible due to one of the situations below:

• Disability: You’re under 65 and eligible for Medicare because of a disability or end-stage renal disease, and you live in a state requiring insurance companies to offer Medigap policies to people with Medicare under 65.
• Other insurance: If you have group health insurance through an employer or union, your Medigap open enrollment period will start when you sign up for Medicare Part B.
• Guaranteed issue right: In some situations, insurers must offer you Medigap policies covering all your preexisting conditions and can’t charge you more because of health problems.

To come up with our top picks, we looked at the reviews and ratings submitted by our readers and current customers on ConsumerAffairs. To make our list, a provider needed at least an overall 3-star rating and a minimum of 50 ratings total. From there, we compared each provider's plans, premiums, terms and conditions and overall customer satisfaction to generate our reviews below.

From this list, we compared several key features, ensuring each of these Medicare supplement insurance providers met our standards for a variety of offerings and straightforward information. These features included:

• Consumer reviews: We analyzed hundreds of reviews to look at whether customers were satisfied with the company’s customer service and claims process.
• Coverage options: We checked each company’s plans and assessed whether it offers a variety of coverages for customers in multiple situations.
• Availability: We made sure our top picks operate in the majority of the U.S. states and are available to the majority of our readers.
• Cost of premiums: We reviewed sample quotes and analyzed both the cost and user-friendliness of the website (if it provided online quotes).