There are a lot of good companies and good plans, and the USAA Medigap plan F meets both those criteria. But sometimes if you want good value you need to move beyond loyalty and do what is right for yourself and your wallet.
Many Medicare beneficiaries are paying too much for Medicare supplement (Medigap) insurance plans. Either they just bought something that sounded good or one a greedy insurance agent pushed without regard for what was affordable.
A neighbor asked me to look at Medicare supplement options for him and make some suggestions. He was losing coverage through his wife’s employer and at age 73 he needed a replacement. A Viet Name veteran, he has used USAA for home and car insurance for years and he trusted them.
The agent quoted a rate of $160 for the USAA Medigap plan F.
That would be a good price if it were accurate, but the real rate was $210.
I have no idea where the made up rate came from, nor do I care. Ed would have discovered the correct rate after the policy was approved but by then it may be too late to switch to a more affordable plan.
I suggested Medigap plan F for $152, a savings of $58 per month when compared to the REAL rate. That will save him $696 per year which is substantial when you are on a fixed income and your wife lost her job of 19 years due to the recession.
I also suggested he consider Medigap plan G as an alternative. The two plans are almost identical with the difference being plan G does not cover the $155 (2010) Medicare part B deductible. In his case, the plan G premium was $125, saving him $27 per month vs. plan F or a savings of $324 per year.
Almost identical coverage.
Premium savings of $324 less the Medicare part B deductible of $155 is a net savings of $169.
This is what we call a no-brainer.
How much are you overpaying for Medicare supplement insurance?
Are you paying too much for your USAA Medigap plan F? If so, it is time to make a change.
It’s not personal, it’s just business.