subject: Is It Time To Switch Your Medicare Supplement Insurance Policy? [print this page] You currently have a Medicare supplement insurance policy (also known as a Medigap plan). You are totally satisfied with the cost, coverage and customer service. Congratulations!
However, if you are not one of the fortunate ones and are thinking about switching to a different Medigap policy, then you may want to consider your options before you make a move. There are federal laws that control when and what you can do.
When You Can Switch to a New Medigap Policy
Knowing your rights when it comes to Medigap insurance allows you to plan for the best health care coverage for you, suggests Alan Weinstock, insurance broker at http://www.MedicareSupplementPlans.com. Thats why it is important to have access to Medigap insurance information that allows you to compare rates, plans and benefits.
There are several reasons you might want to change you plan. Perhaps your needs have changed and you require less or maybe more coverage, or maybe your current Medigap policy has the right benefits, or youre just not happy with the insurance company due to customer service or expense. These are all valid reasons for wanting a different Medigap plan.
Once you have purchased a Medicare supplement insurance policy you generally wont have a right to switch policies until you reach your Medigap open enrollment period or when you are eligible for guaranteed issue rights.Guaranteed-issue rights periods include when:
Your employer-sponsored retiree plan is terminated, reduced or you lose eligibility.
Your Medicare Advantage (MA) plan increases your costs, reduces your benefits or a medical provider treating you leaves the plan.
You move out of your MA plan or Program for All-Inclusive Care (PACE) organization service area.
Your provider commits fraud, ends or loses its contract with Medicare, misrepresents the plan you bought or fails to meet contractual obligations.
You joined a MA plan or PACE organization when you first became eligible for Medicare at age 65 and you want to switch to a Medigap policy (must occur during your first 12 in your MA plan or PACE).
You switch from a Medigap policy to a MA plan, PACE organization, Medicare SELECT plan or any other health care organization contracting with Medicare, for the first time since becoming eligible for Medicare and you disenroll from that plan within the first 12 months.
Keep in mind that if you dont purchase your Medicare supplement policy at the right time, an insurance company can use medical underwriting, advises Weinstock. That means they can decide whether or not to accept you or set different terms such as waiting periods and premiums.
Switching Policies When You Have an Older Medigap Policy
Making the decision to switch is particularly important if you bought your Medigap policy before 1992 because it may offer coverage that isnt available in a newer Medicare supplement plan. However, older policies might not be guaranteed renewable and just might have bigger premium increases than newer standardized Medigap policies.
Before you cancel your old Medigap policy and switch to something new, take a free look, suggests Weinstock. On your application for the new policy you can promise to cancel your first Medigap plan within 30 days. The free-look period requires you to pay both premiums for a month. But its worth it to give yourself the opportunity to decide if you want to keep the new Medigap policy.
While youre not required to switch from your old pre-1992 Medicare supplement insurance, if you do you wont be able to go back to your old policy. So be sure you want to make the change.
by: Dallas
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