Do You Need to Review Your Medicare Supplement Plan?
You probably, already review your investments.
You may review your insurance.
You might revisit your retirement income strategy as your circumstances change.
But when was the last time you reviewed your Medicare Supplement plan?
If your answer is "I don't remember," you're not alone.
Many people choose a Medicare Supplement policy when they first enroll in Medicare and then keep the same policy for years without taking another look.
That doesn't necessarily mean you have the wrong coverage.
But it may mean you're missing an opportunity to understand whether your current plan and premium are still competitive.
First, What Is Medicare Supplement Insurance?
Medicare Supplement Insurance, commonly called Medigap, is private insurance designed to help pay some of the out-of-pocket costs associated with Original Medicare.
Medigap is different from Medicare Advantage. You use Medigap alongside Original Medicare, while Medicare Advantage is an alternative way to receive your Medicare benefits. You generally can't have both at the same time.
Medigap policies are standardized by letter.
That means a Plan G sold by one insurance company generally provides the same standardized benefits as a Plan G sold by another insurance company. The same concept applies to other standardized lettered plans.
So, if the benefits are standardized, what should you compare?
Premium Is an Important Part of the Conversation
When comparing the same Medigap letter from different insurers, the benefits are generally standardized, which makes price an important point of comparison. Medicare notes that prices can vary among companies offering the same lettered plan.
That means your current carrier isn't necessarily the only carrier worth considering.
Your premium may have changed over time. Other companies may have different pricings. And your overall healthcare and financial circumstances may have changed since you first selected your coverage.
A review can help you determine whether it's worth exploring those options.
What About Plan G and Plan N?
Plan G is one of the most discussed Medicare Supplement options, but it isn't the only option.
Plan N may be worth considering, particularly those who are comfortable with its cost-sharing structure in exchange for potentially lower premiums.
For example, Plan N can involve copayments for certain office and emergency room visits, while Plan G generally provides broader cost-sharing protection.
The goal isn't to say that one plan is universally better.
The goal is to understand the tradeoffs and determine which structure makes sense for you.
Don't Assume You Can Change Plans Without Consequences
There's an important distinction between reviewing your plan and automatically switching your plan.
Your initial Medigap Open Enrollment Period is a one-time six-month window that begins when you're 65 or older and enrolled in Part B. During that period, insurers generally can't deny you coverage or use medical underwriting because of pre-existing health conditions.
Outside that window, your ability to change Medigap policies can depend on your circumstances and state-specific rules. You may face medical underwriting, higher premiums, or fewer options unless you have certain guaranteed-issue rights.
That's why a review should come before you decide to make a change.
A Medicare Review Doesn't Mean You Have to Change Anything
This is perhaps the most important point.
A Medicare review isn't a commitment to switch plans.
It's an opportunity to understand what you currently have, what you're paying, and what alternatives may be available.
At The Pitti Group, we want our clients to make decisions based on information, not pressure.
Sean Hantes, our AHIP-certified Medicare advisor, can review your current coverage, answer your questions, and help you understand your options.
And because Medicare is only one part of your retirement picture, we can also consider how your healthcare costs fit into your broader financial plan.
Is it time to take another look?
You may decide that your current coverage is exactly right.
Or you may discover an opportunity worth exploring.
Either way, you'll have more clarity about one of the most important expenses in retirement.
Disclosure:
The views expressed in this commentary are subject to change based on market, and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance, and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
The Pitti Group, LLC (“The Pitti Group”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where The Pitti Group and its representatives are properly licensed or exempt from licensure.
For additional information, please visit our website at www.thepittigroup.com