FAQ: Can I Switch To A Different Medigap Plan?
Technically speaking, you are allowed to switch to a different Medicare Supplement at any time of the year, though you must be prepared to pay penalties if you do so outside of your Open Enrollment Period.
The Open Enrollment Period is the six-month window that begins on the first month that you are enrolled in Original Medicare Part B and are aged 65 years and older. During this time, all insurers are required to approve any policy you apply for and are not allowed to charge more because of past or present health issues.
There are certain states that will not allow you to switch unless it is done during the six-month window or you are eligible under special conditions for guaranteed issues rights. Some states are more generous and will let you make changes. It is important that you are familiar with your state’s laws with regard to Medicare and Medicare Supplements so you know what your concessions are.
A guaranteed issue right relates to a specific situation where insurers are legally required to offer and sell you a Medigap policy, such as when your previous insurer closes down or suddenly makes your old Medigap plan unavailable among others. The terms for guaranteed issue rights are similar to what you enjoy during Open Enrollment—your insurer cannot deny you a policy or charge more for past or current health conditions.
Reasons Why You Might Want To Change Your Medigap Policy
There are several reasons why members might want to make a switch:
1. You need more benefits now than before
2. You are paying for benefits that you are not using (and do not need)
3. You are happy with your Medigap policy but want to change your insurance provider
3. You are happy with your Medigap policy but you want to change to a plan that is less expensive
Dates To Consider Before Switching
If you purchased your Medicare Supplement plan before the year 2010, it may include certain benefits that are no longer available in the most recent set of plans. If you cannot part with your old benefits, it is recommended that you stick to it or be prepared to have revisions to what you can and cannot avail with your new policy.
If you purchased your Medicare Supplement plan before 1992, it might not be guaranteed renewable. It might also have larger premium increases than the newer policies being sold.
If you are holding a Medigap plan that is no longer being sold today, you don’t have to make a switch if you are happy with it. However, once you decide to cancel it, you cannot get it back.
Important Tip Before Switching To Another Medigap Policy
If you are switching to another Medicare Supplement Plan, don’t cancel your old one yet until you have really decided on your new policy. This will keep you protected and covered—just in case you are not happy with the new policy and want to move back. In the application for the new Medigap plan, you will be asked to promise that you will cancel the old one. However, you will be given a “free look” period, during which you can decide whether or not to push forward with the switch or keep your old policy.
Free Look Period
The Free Look Period is the 30-day window during which you can check out all the benefits and features of the new policy before you finally make a decision to stay or go. It starts on the day you get your new Medigap plan. During this time, you will be asked to pay for both your old policy and the new one, but you will not be penalized if you decide to back out.
It is crucial that you take the time to study and compare the differences in coverage and benefits of your preferred plan before deciding to make a change. If despite reading the information online, you still have specific inquiries or want to clarify anything, our team of qualified Medicare Supplement advisors are always ready to answer questions and provide guidance.
