An alphabet soup of Medigap Plans are available – A through N, though not all are offered everywhere and some are no longer offered but have been grandfathered for those who already have them. Plan F is the most comprehensive.
Each year, you’ll receive from Medicare a publication called Medicare and You, which includes a chart showing what each of the alphabet plans cover. (This information is also available online: Compare Medigap Plans.)
What the plans cover is mandated by law, so every Plan A Medigap policy must provide the same coverage as every other Plan A; every Plan B the same coverage as every other Plan B, etc. Nonetheless, as many as fifty insurers may offer a Plan A (or B or F or G) policy in a given county, and the premiums may vary by over $100 a month!
For example, Arizona’s Department of Insurance each year publishes a “Medicare Supplement Premium Comparison Guide.” The Guide for 2012 shows that in Pima County, a Plan F Medigap policy for a 65 year old woman would cost $126 monthly from United Health Care (one of the least costly) and $290 from Physician’s Mutual (the most costly). There were 47!! insurers offering Plan F policies in Pima County, and each had a different premium. Aetna’s was $181; State Farm’s was $190; Globe Life and Accident’s was $160.
Why the different prices for identical coverage? Why would anyone pay more for the same coverage?? Why do we need 47 insurers offering identical policies? (Oh, right. Capitalism.)