How Do I Shop for a Medicare Supplement Plan?

Determine how much coverage you need.
There are a number of factors to consider before deciding on the right plan for you, including the cost of the various plans, and your present and future healthcare needs. It is best to compare the benefits of each plan. Here are a few questions to ask yourself:

Can you afford to pay the 2009 Medicare Part A hospital deductible of $1,068 each time you are hospitalized?

Are you willing to pay extra premiums for coverage such as preventive care or foreign travel emergency care?

Is home-care coverage a priority for you?

Are you willing to assume the cost of paying excess charges should you see a doctor who does not take assignment?

Research the companies offering the plan you want.
Since all Medicare Supplement plans are standardized, the only difference in the coverage is the company behind it. There are several factors you should consider about an insurance company before you purchase a product.    

• Premiums - Premiums can vary tremendously from company to company. Don't just look at current pricing. See how the rates are calculated, whether they are based on your age at policy issue (issue age) or whether they will increase each year with your age change (attained age).   
• Service - How the policy is serviced should be a big consideration when choosing a company. Is it serviced by a personal Agent or by a Home Office 800 number? Does the company offer an automatic claims filing service so you don't have to worry about missed claims? Does the company offer any other services, such as a prescription drug discount card?    
• Ratings - A company's industry ratings from companies like A.M. Best and Standard & Poor's can be a strong indication of its financial strength and reliability.     
• Choice - Is it important to you to be able to choose your own doctors and hospitals? If so, you may prefer a private insurer rather than an HMO for your supplemental insurance.