Tips for shopping-Standardization
When comparing Medicare Supplement policies, it is important to remember that these policies are standardized.
This means that the Medicare Supplement policy must follow federal and state laws designed to protect consumers, and it must be clearly identified as "Medicare Supplement Insurance."
Insurance companies can only sell consumers a "standardized" policy identified in most states by letters. The letters associated with these plans are Plan A, B, C, D, F, G, K, L, M, N.
In Massachusetts, Minnesota, and Wisconsin, Medicare Supplement policies are standardized in a different way.
All of these standardized plans offer the same basic benefits but some plans offer additional benefits. This gives the consumer the ability to choose the plan that will best suit their needs.
Because these plans are standardized, the key element in shopping for Medicare Supplement Insurance becomes the price. However, how an insurance company structures their pricing can have a significant effect on long-term price stability. The company that has the lowest premium today may have one of the highest premiums in three years.
Each insurance company decides which Medicare Supplement policies it wants to sell, although state laws might affect which ones they offer.
Insurance companies that sell Medicare Supplement policies don't have to offer every plan. They must offer Plans A, C, and F if they offer any Medicare Supplement policy.