For most seniors, having Medicare is vital. That being said, a basic Medicare plan may not be quite enough coverage for your needs. In fact, 90% of Medicare participants have some sort of supplemental health insurance, whether it be Medicaid, an employer-sponsored plan, Medicare Advantage, or Medicare Supplement plans (also known as Medigap). With so many
Medicare supplement plan
options to choose from, you may feel overwhelmed about having to choose one. Whether you made the wrong decision or your needs have simply changed, it's possible that your current supplemental policy isn't fitting the bill (or is making the bill much too high!). The good news is that it is possible to switch Medicare supplement plans. However, there's some important information you need to know first.
There are several reasons people consider choosing a new supplement plan. You might want to consider making a switch if you...
• Are paying for benefits you don't currently need (or don't anticipate ever needing)
• Need more benefits now than you did when you purchased the policy
• Want to find a more affordable plan
• Are dissatisfied with your insurance provider
• Will be losing or cancelling coverage because your insurance company is going out of business, went bankrupt, committed fraud, or misled you in some way
Under Federal law, you have the right to switch your
Medigap policy
during the six-month Open Enrollment Period. This period begins the first month you are eligible for Medicare Part B (also known as Original Medicare), as long as you're 65 or older. This six-month period allows you to choose a new plan without the possibility of being turned town or charged more by insurers due to pre-existing conditions.
Outside of this six-month period, you typically will not have the right under Federal law to change your policy. However, you can do so under certain circumstances. For instance, if you've moved out of your Medicare Advantage plan's service area, your Medicare Advantage plan is being discontinued, or your insurance company has left your area, you will usually be eligible to switch your plan, regardless of when these incidents occur.
Keep in mind that just because you don't have a Federal right to switch doesn't mean you absolutely can't. Certain states may be more lenient about when you can purchase a new plan, and some insurance companies will be willing to help you make the switch at any time. However, you may have to pay a higher premium or answer additional medical-related questions during the application process. On the flip side, some insurance companies may refuse to sell you a plan outside of that six-month time frame. Unless you find yourself in extenuating circumstances beyond your control, it's usually best to change your coverage during the Open Enrollment Period.
Once you've made the decision to
switch insurance companies, you should call your new insurer and apply for a new Medigap policy. Your agent can advise you as to the best plan choice for your needs, but you should also do research on your own. When your application is accepted, you can call your current insurer and request an end to your coverage. You will have 30 days (known as the "free look period") to decide whether the new Medigap policy is right for you. In this situation, you'll keep both policies for that first month to ensure you've made the correct decision. You will have to pay both premiums for this one month. You should not officially cancel your original Medigap policy until you're sure you want to keep the new one. That way, if you discover your initial plan was a better fit, you can return to that with no hassle.
Without a doubt, Medicare and Medicare Supplement plans can be a bit confusing. But if you're looking to change your policy, we're here to help you through the process. Just contact us to get started.