Answer: It’s 100% false when it comes to Medicare Supplements, including the company Karen is referring to. Due to federal regulations of Supplements aka Medigap, slow paying doctors and hospitals, denying claims, requiring pre-authorizations for services, or dictating what medical providers are accessible CAN NOT happen.  Supplements are the only type of health insurance in America I can make that statement about. 

On June 17th, I posted an edition of Aaron’s Advice on our Facebook Group about how common, unfortunate, and expensive it is for people to get bad advice or not understand all the facts about what they read and hear on the news. I actually referenced the company Karen is asking about. If not for contacting me, her and her husband would have begun paying $120 more per month for the same exact Plan N Supplement. In three years, that amount could have climbed to over $200/month.  

Not realizing all Supplements of the same letter are created equal regardless of the company that sells it is one of the most common misconceptions in all of Medicare. Let me once again quote the Centers for Medicare and Medicaid from their publication titled “Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare.” 

“All Medigap policies must follow federal and state laws designed to protect you, and policies must be clearly identified as “Medicare Supplement Insurance.” Medigap policies are standardized, and in most states are named by letters, Plans A–N. Each standardized Medigap policy under the same plan letter must offer the same basic benefits, no matter which insurance company sells it. Cost is usually the only difference between Medigap policies with the same plan letter sold by different insurance companies.”

Let me explain this further by providing my response to Karen’s email:

Supplements are all Federally regulated to work exactly the same and once a policy has been issued, the insurance companies are simply check writers and paper pushers. They are told by Medicare what they owe and who they owe it to. Medicare is the only entity billed, not the Supplement company. Medicare lets your treating physicians decide what is medically necessary. He or she can order tests, procedures, surgeries, PT, extra days in the hospital, etc., with no concern of it being denied by Medicare or an insurance company. Again, the Supplement companies have zero say in what’s covered.  None. They can’t deny a claim or slow pay medical providers. That’s illegal. There are no networks, and you never ask a doctor or hospital if they take Aetna, Cigna, AARP, United, Mutual of Omaha, New Era or any other of the 15 or so Supplement companies that sell them in Pennsylvania.  When you have a Supplement, you only ask a provider if they accept Medicare, which every full-service non-VA hospital in the country does, as well as virtually every doctor. You will always be able to use the same doctors or hospitals when you change companies. There is no other health insurance in America that allows you and your doctor these freedoms. 

In summary, the name of the company providing the Supplement means absolutely nothing. They all work exactly the same way. 

I wrote a piece about how common it is to get bad information about health and Medicare insurance, and I cited the company you’re worried about. The news on them was about commercial insurance provided by employers which is no longer going to be in network with AHN. It didn’t affect that company’s Medicare Advantage Plans, and it could never affect Supplements because doctors and hospitals can’t choose what Supplements they take or don’t take. They don’t need to because they never bill them and get reimbursed the same no matter what company your Supplement is with. Don’t even think about the Supplement company’s name. If you remain healthy enough to pass underwriting, we may switch you five more times in the coming 15 to 20 years. It won’t matter because coverage, access to care, and how claims are submitted and approved will all work exactly the same as the last company or the next one we enroll you in as long as it’s the same letter plan. 

If you are on one of the many companies that’s increasing Supplement rates at the highest percentage since you originally enrolled, I strongly recommend reaching out to us to get a quote on the same letter plan you currently have with a different company. We can also pre-screen you for underwriting. Please don’t have reservations or preconceived notions that you won’t be able to change companies due to any pre-existing or past medical conditions. You do not need to have a physical. All you need to do to apply is answer a series of questions and list medications you’ve taken in the past two years.  

If you have any questions regarding this week’s column or any other Medicare, health, or life insurance related topic, give us a call or email me personally at Aaron@GetYourBestPlan.com.