Medigap policies without brand names. Should you take a chance and buy one? My advice – no. Absolutely not.
Recovering from buying a Medigap policy from the wrong company isn’t like returning a pair of shoes you don’t like. It’s not that easy.
You run many risks – including not being insurable if you decide to make a change and being stuck with a company you don’t like for the rest of your life.
It’s not the plan we’re talking about; it’s the insurance company behind the plan. Remember, Plan G with Insurer A is the same as Plan G with any other insurance company. Insurers must provide, by law, the same Plan G benefits as their competitors. Nothing more- nothing less.
You can’t change horses in midstream.
Let’s take a look at what happened to Sarah.
Sarah worked with a national Medigap policies insurance policy sales agency. Based on her health history, they recommended that she buy Plan G and gave her quotes from four different insurers:
- Mutual of Omaha
- United Healthcare
- Humana
- Podunk (fictitious name)
Sarah was familiar with the first three companies because they’re household names. She had never heard of Podunk before.
Who do you think the agency recommended that Sarah buy a policy from? That’s right – Podunk. Why? Price.
Have you ever bought something because it was cheap and regretted it? Me too. Unfortunately, so did Sarah.
Podunk turned out to be a nightmare when it came to processing and paying claims. And, their customer support was horrendous. Sarah became exasperated, and within six months she called her agent to switch insurers.
But there was a problem. Sarah’s six month open enrollment period was over, and she had been diagnosed with diabetes during that six month period.
When she applied to other insurance companies, she was declined by every single one because of her diabetes. Her six month open enrollment window was closed, and she was no longer insurable. Sarah was stuck with Podunk’s medigap policy for life.
It should be noted that there are a few exceptions, like the company going out of business or the insured moving to a new coverage area. But how often do seniors with a serious health condition move? Not very often.
Medigap policies – don’t take a chance.
My advice: if you’re not familiar with the insurance company, don’t buy their policy. Why take the chance? You’ll pay a little more for a national brand, but you won’t care when you have claims needing to be processed and paid.
Why would an agent recommend Podunk instead of a reputable insurer? One of two reasons: incompetence or greed. They either aren’t good at their job or Podunk pays agents a higher commission.
Bottom line – buy from a name brand insurance company recommended by a reputable and honest insurance agent. They’re out there. Ask a friend who they use and how it’s worked out for them. A referral is the best way to find the right Medigap policies from an honest agent.
