Medigap is a supplemental insurance policy that can be used with Medicare Parts A and B to fill any gaps in your coverage. Medigap helps you cover costs related to deductibles, copayments, coinsurance, and more. Let’s look at when is the best time for you to switch Medigap plans.
More Information on Medigap
A Medigap policy helps you bridge the gaps in your Original Medicare policy. It usually covers services that don’t fall under your Original Medicare plan. For example, suppose you need to see a doctor or visit a hospital while out of the country. In that case, depending on the Medigap policy you have, the plan may pay the difference between the total healthcare costs and the Medicare-approved amount.
You must have Medicare Part A and B to obtain a Medigap policy. Medigap policies can be bought from any insurance carrier that’s licensed to sell one.
Medigap vs. Medicare Advantage
Medigap and Medicare Advantage are two very different policies. While Medicare Advantage plans are designed to be an alternative way for you to obtain Medicare benefits after you qualify, Medigap bridges gaps in your Original Medicare coverage. It’s a purely supplemental type of plan, while Medicare Advantage is a plan of its own.
Medigap policies are optional insurance policies, so if you choose to get one, you’ll be responsible for paying a monthly premium from your private insurance provider and your monthly Part B premium that you pay to Medicare (including your Part A premium if you have one).
Medigap policies are designed to cover any out-of-pocket costs for services covered by Medicare instead of having the enrollee pay for them entirely out of pocket. However, Medigap policies usually don’t offer coverage for dental, vision, long-term care, and private-duty nursing. On the other hand, Medicare Advantage may provide some coverage for benefits such as dental, vision, and hearing.
When is the Best Time to Buy Medigap?
You can first buy Medigap during your 6-month Medigap Open Enrollment Period. During this stage, you will generally get better prices and have more choices with policies. You can buy any Medigap plan sold in your state during your enrollment period, even if you have health issues. The enrollment period automatically starts the first month you have Medicare Part B coverage, and you’re 65 or older.
This period cannot be changed or repeated.
After the enrollment period, you may not be able to buy a Medigap policy. In some cases you can, but it may cost you more due to present or past health problems.
Medigap insurance companies are allowed to, and will generally use, medical underwriting to decide to accept you and how much to charge you in monthly premiums if you buy a plan outside your Medigap Open Enrollment Period.
The Best Time to Switch Medigap Policies
There are a few different reasons you might want to switch policies:
- You’re paying for benefits you don’t need.
- You need more benefits.
- You want to change your insurance company.
- You want a policy that costs less.
The best time to switch your Medigap policy is during your Medigap Open Enrollment Period, the 6-month period that starts when you’re 65 or older and have a Medicare Part B plan.
This is the best time to switch because, during this time, you can join any other Medicare Supplement plan offered in your area. This means you will receive your coverage without being charged extra, even if you have health issues or complications. If you join a Medigap plan during your 6-month period and you don’t like it, you can switch to a different Medigap plan within this period and benefit from guaranteed-issue rights.
That’s why your 6-month enrollment period is the best time to switch. Because once your enrollment period is over, you may have more trouble changing your Medicare Supplement plan or face higher prices after changing.
Most companies can require medical underwriting or take your health conditions into consideration if you change your plan outside this period. If you have worsening health conditions, your premiums may be higher when you switch outside the 6-month period. You may even be rejected entirely.
In some cases, you may be able to enroll in a Medigap plan with guaranteed issue. Some examples of that include but are not limited to:
- Your Medigap insurance company went bankrupt.
- Your Medigap insurance company misled you or committed fraud.
- You lose your Medigap coverage through no fault of your own.
What is the Free-Look Period?
Suppose you’re thinking of changing your Medigap plan. In that case, staying with your current Medicare Supplement plan might be a good idea until you’re sure you want to keep your new policy.
You’re not usually allowed to keep more than one Medigap policy at a time, but state laws offer you a 30-day “free-look period” where you can try out a new Medicare Supplement plan while keeping your Medigap policy.
If you decide you don’t like your new policy, you can cancel it at any time and go back to your original Medigap plan. Consider it a trial period of your new Medigap plan without having to worry about not being able to still receive your old plan if you don’t like the new one.
Here’s how the “free-look period” works:
- When applying for the new Medigap plan, you must state that you will cancel your first policy after the 30-day period has ended.
- You will pay two premiums for that one month (both for your original Medigap plan and the new policy).
- After 30 days, you can cancel your first Medigap plan if you keep your new policy. If you don’t like your new Medigap plan and are still in your free-look period, you can cancel the second policy and keep your first plan.
Want to switch your Medigap policy? Reach out to Toni Buffington Medicare Solutions today to learn more about the Medigap options available.