Can I change my Medicare Supplement insurance plan?

Can I change my Medicare Supplement insurance plan?

You can change your Medicare Supplement insurance plan any time of the year. But if you do change insurance plans or providers, you should switch during the initial 6-month open enrollment period.

If you don't change insurance plans during your open enrollment period, your insurer could charge higher premiums or refuse to insure you based on your past or current health problems. The only way to switch plans outside of open enrollment without facing the possibility of higher costs is if you have a guaranteed issue right.

Medigap insurance plans are guaranteed renewable and you will be able to keep the insurance policy year after year unless your insurer cancels the policy or you miss premium payments.

But you may want to change Medigap plans or insurance companies to increase benefits or lower your monthly costs. Whether this is a smart decision depends on when you want to switch.

Making changes during open enrollment

The best time to switch Medigap policies or providers is during your Medigap open enrollment period. This 6-month period starts the day you are both 65 years old and enrolled in Medicare Part B.

During the 6-month open enrollment period for Medigap, you can change insurers or insurance plans without penalty. You do not have to keep your first Medigap policy for a certain period of time. The transition should be smooth as long as it is finalized before the end of your 6-month open-enrollment period.

Making changes after open enrollment

Making changes outside of open enrollment is a little trickier. Unless you have a guaranteed issue right, you will be subject to medical underwriting. That means insurers can charge you higher rates based on your health history or deny you coverage altogether.

When you have a guaranteed issue right, you should be able to make changes without problems. You have a guaranteed issue right if:

Your Medigap insurance company goes bankrupt or ends you policy through no fault of your own

You leave your current Medigap insurer because the company misled you

If either of those situations applies to you, you can switch Medigap plans without medical underwriting. You must apply no later than 63 calendars days after the previous health coverage ends.

If your enrollment period is over and you don't qualify for a guaranteed issue right, you can still make changes, but it could cost you.

In this situation, insurance companies have more control over the enrollees in each insurance plan. Medigap insurance companies can:

Refuse to sell you a new policy

Require you to pay higher premiums based on your current age and health status

Deny coverage for up to 6 months for any benefits are offered in the new policy but not included in your current policy

Exclude coverage for pre-existing medical conditions or force a waiting period before the coverage begins if the insurance policy has been in effect for over 6 months

Medigap enrollees with pre-existing health conditions will likely face higher monthly premiums or could be rejected entirely. The exact medical underwriting standards will vary based on the insurance company. Some insurers will accept high-risk enrollees and charge higher premiums. Others will deny coverage outright.

If you keep the same insurance company and simply change Medigap plans, contact your current insurer and follow the listed procedures.

When you switch from one insurer to another, do not cancel your current policy until you are provided coverage from another insurer. Since you will be insured at the time of the application, notify the new insurance company that you will cancel the old policy within 30 days. This time is called a free-look period. Although it is technically not free because you must pay for two policies at the same time, you will have sufficient time to decide which policy is worth keeping. Keywords: common questions, Medicare Supplement

Can I change my Medicare Supplement insurance plan?