There are certain times when you are guaranteed the right to purchase Medicare supplement plans, also called Medigap plans. Certain rules also apply, such as:
- You must have Part A and Part B to be able to buy a Medigap policy.
- Medicare supplements cover only one person. Your spouse must have his or her own individual policy.
- You can drop your supplement at any time. This is a private policy, just like life insurance would be.
- Supplements are guaranteed renewable no matter what health conditions you may develop. They can not be cancelled by the insurance company due to medical conditions.
Medicare supplement open enrollment
Per Medicare’s own Guide to Health Insurance, the best time to buy a supplement policy is during your open enrollment window. This window begins on the first day of your birth month, or the month that you enroll in Part B, and lasts for six months.
During open enrollment, the Medicare supplement company is not allowed to ask you any medical questions, nor can they turn you down for any health conditions. They cannot refuse you a policy or charge you any additional amount due to health conditions, medications yor take or pre-existing illnesses.
After this window passes, however, future insurance companies that you might apply with can accept or decline you based on health, and that is why the handbook states that this is the best time to enroll – because you know you will be accepted if you apply during open enrollment.
Medicare supplement guaranteed issue
Some people delay enrollment into a supplement because they have group health coverage through their employer or through a spouse’s employer. If that insurance is primary to Medicare, and you later retire or lose that coverage, you will be given guaranteed issue rights to purchase a policy within the 63 days following the loss of your group coverage. The guaranteed issue window works just like open enrollment, except that is a shorter period of time. The insurance company cannot deny your application for any health reasons whatsoever.
Guaranteed issue rules can vary by state, so be sure to check with a licensed agent who can give you accurate information about the laws that apply in your state. Our agency is licensed in over 30 states, so feel free to contact us if you would like for us to check for you.
You will want to keep any notices or memos from your prior carrier that show proof of your creditable coverage for guaranteed issue and also so that you do not incur the Part D late enrollment penalty.
Medicare Supplement plan options
Since there are several standardized plans available to you in each state, you will want to carefully review the benefits for each supplement plan. Think carefully about which one fits your needs the best.
Our agency provides more than just quotes. We give you a few pieces of not-so-public information that can make a real difference in your annual costs. You can see a sample quote right here.