If you have a Medicare Supplement Insurance plan, also called Medigap, you may wonder whether you can switch to a different plan whenever you want.
You can apply for a different Medicare Supplement plan at any time. However, outside certain protected enrollment periods, you may have to pass medical underwriting before the new insurance company will accept you.
That’s because Medicare Supplement works differently from Medicare Advantage and Part D. There isn’t an annual Medigap Open Enrollment period when everyone gets a guaranteed opportunity to switch plans without medical underwriting.
Here’s what you should know before making a change.
Medigap Doesn’t Have an Annual Open Enrollment Period
One of the biggest sources of confusion is the phrase “Open Enrollment.” Medigap does have an Open Enrollment Period, but it happens only once. Under federal law, your six-month Medigap Open Enrollment Period begins when you’re 65 or older and enrolled in Medicare Part B. During this window, insurance companies generally can’t use your health history to decide whether to sell you a policy or charge you more because of a pre-existing condition. That period doesn’t come back every year.
For Florida residents: Florida also provides a six-month Medigap Open Enrollment Period for individuals under age 65 who become eligible for Medicare because of a disability or End-Stage Renal Disease (ESRD) and are enrolled in Medicare Part B. If you become eligible for Medicare before age 65, you’ll also have another six-month Medigap Open Enrollment Period when you turn 65.
The Medicare Open Enrollment Period you hear about each fall is different. From October 15 through December 7, you can make certain changes to Medicare Advantage and Part D coverage. It doesn’t give everyone a guaranteed opportunity to switch Medigap policies.
Can You Switch Medigap Plans After Open Enrollment?
You may be able to. If you want to change your Medigap policy after your six-month Open Enrollment Period, you can apply for another policy. The insurance company may ask health questions and use medical underwriting to determine whether you qualify for the policy. Depending on the circumstances, your options may be more limited, and coverage may cost more than it would have during your Medigap Open Enrollment Period. That means your health history can become an important part of the application.
Does My Health Matter When Changing Medigap Plans?
It can. Outside of your Medigap Open Enrollment Period or another situation that gives you guaranteed issue rights, an insurance company may use medical underwriting when you apply for a new Medicare Supplement policy.
This means the company may ask questions about your health history before deciding whether you qualify for coverage. For this reason, it’s important to make sure you’re approved for your new policy before canceling the Medicare Supplement coverage you already have.
What Are Guaranteed Issue Rights?
There are situations where federal law gives you a guaranteed issue right. When you have one, an insurance company generally can’t deny you a Medigap policy or use medical underwriting to determine your eligibility.
These protections can apply when certain types of existing coverage end or change. They can also apply in some situations involving Medicare Advantage, such as when a plan leaves Medicare or stops serving your area.
The timing matters. Guaranteed issue rights have specific application windows, and in many situations you can apply before your current coverage ends. Depending on the circumstances, your rights may continue for up to 63 days after the coverage ends. If you are unsure of whether you have guaranteed issue rights or when you need to apply, our team at McKnight & McKnight is here to help.
Why Would Someone Want to Change Plans?
There are plenty of reasons someone might consider switching. Your current premium may have increased. You might find another company offering the same lettered plan at a different premium. Your healthcare needs may have changed, or you may simply want to review whether you’re still getting the coverage you want.
Medigap plans are standardized by letter in most states, which makes comparing the benefits of the same plan across insurance companies relatively straightforward. The premiums can still vary between insurers. The tricky part is making sure you can qualify for the new policy before giving up the one you already have. Don’t worry, that’s what we are here to help with!
Don’t Cancel Your Current Plan Too Soon
This is one of the most important parts of switching. If you’re approved for a new Medigap policy, don’t automatically cancel your existing coverage. When switching Medigap policies, you may have a 30-day “free look” period to decide whether you want to keep the new policy. During that time, you’ll need to pay premiums for both policies.
Don’t cancel your existing Medigap policy until you’re certain you want to keep the new one.
Dropping a Medigap policy can also make it difficult to get the same policy back later. A little patience here can save you a major headache!
What If You’re Switching from Medicare Advantage?
Switching from Medicare Advantage back to Original Medicare is a little different. In certain situations, you may have a trial right that allows you to purchase Medicare Supplement coverage without medical underwriting.
For example, if you joined a Medicare Advantage plan when you were first eligible for Medicare at age 65 and decide within the first year that it isn’t right for you, you may have a guaranteed right to switch to Original Medicare and purchase certain Medigap coverage.
A trial right may also apply if you previously had a Medigap policy, dropped it to join a Medicare Advantage plan for the first time, and decide within the first year that you’d like to return to Original Medicare. Depending on the circumstances, you may be able to return to your previous Medigap policy or purchase certain other Medigap coverage.
The rules and timing requirements are specific, so don’t assume that leaving Medicare Advantage automatically gives you the right to purchase any Medigap plan. Before making a change, it’s important to understand your options and confirm your eligibility for Medicare Supplement coverage.
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Before You Switch, Check Your Options
Changing a Medicare Supplement plan isn’t necessarily difficult, but timing matters. Before submitting an application, find out whether you have guaranteed issue rights, whether medical underwriting will apply, and what the new policy will cost. Compare the benefits, premiums, and company carefully, and make sure you understand when your current coverage would end.
If you’re considering a Medigap change, McKnight & McKnight Insurance Solutions can help you review your options and understand the rules before you make a switch. Contact us to discuss your current coverage and see what choices may be available to you by scheduling your complimentary appointment online or calling us at (813) 792-2301 or (866) 525-0368 today!
