Why Apply For Medigap During Your Medigap Open Enrollment Period
Most Medicare beneficiaries apply for a Medigap policy before or during their Medigap Open Enrollment Period, which starts when your Medicare Part B becomes effective. Medigap doesnt have annual enrollment periods. Your open window to apply is specific to you.
If you apply before or during your Open Enrollment Period, the insurer cant deny your application and must give you the best rate for your age. If you apply before your Open Enrollment Period, you can have the Medigap policy start the same date as Medicare Part B. Keep in mind, however, that the insurer may impose a waiting period for preexisting conditions.
If you sign up after your Medigap Open Enrollment Period, things can get a little tricky. Medigap insurance companies are legally allowed to:
- Ask you to go through medical underwriting a process to figure out your health status
- Charge you a higher premium than someone whod signed up during their Medigap Open Enrollment Period
- Subject you to a preexisting condition waiting period for up to six months of your policy
- Refuse to sell you a Medicare Supplement plan
Your Next Steps With Medicare Supplement
If you want a Medicare Supplement plan, its best to sign up during your Medigap Open Enrollment Period. Not only will you avoid medical screening and underwriting, you can get the best rate for your age. If you have a preexisting condition and had prior coverage, check the terms of the plan you want to make sure your previous insurance qualifies you for a shorter wait.
If youre looking for Medicare Supplement insurance outside of your Medigap Open Enrollment window, you still have options, but they may be limited. In certain situations listed above, such as moving out of a plans service area you can still avoid the waiting period.
Its best to check with multiple companies to save money and time. Different companies may have lower prices or easier enrollment guidelines. So while one company may deny coverage for your preexisting condition, a broker can guide you to others that wont.
Guaranteed Access After Open Enrollment
Once the open enrollment period ends, consumer protections shrink for those with pre-existing conditions. There are only five situations that give you guaranteed access to Medicare Supplement insurance after open enrollment. If any of those five situations apply to you, you have what is referred to as a guaranteed issue right. If you have a guaranteed issue right, an insurance company must sell you a Medigap policy, must cover all pre-existing conditions, and cannot charge you more because of your pre-existing condition.
You have a guaranteed issue right in the following five situations:
Guaranteed issue rights protect you, but they must be utilized quickly. In order to qualify for a Medigap policy without underwriting, you must apply no later than 63 calendar days after your previous health coverage ends.
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Who Is Eligible For Medicare Supplement Insurance
If you are age 65 or older and enrolled in Original Medicare Part B, you may be eligible to enroll for Medicare Supplement Insurance. You can apply for a Medicare Supplement plan at any time throughout the calendar year, but during your 6-month open enrollment period, you can buy any policy offered in your state and you are guaranteed coverage even if you have pre-existing health conditions.
- If you are retiring at 65 and applying for Medicare Part B, your open enrollment period lasts for 6 months starting the first day your Part B coverage begins.
- If you are not retiring until later and still getting medical coverage under your employers insurance, then your open enrollment starts when you do retire and sign up for Part B coverage.
Medicare Supplement plans are also available to you if youre younger than age 65 and eligible for Medicare due to disability.
Can I Switch Policies
In most cases, you won’t have a right under federal law to switch Medigap policies, unless one of these applies:
- You’re eligible under a specific circumstance or guaranteed issue rights
- You’re within your 6-month Medigap open enrollment period
You don’t have to wait a certain length of time after buying your first Medigap policy before you can switch to a different Medigap policy.
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See The Situations Below On Switching Medigap Policies
- I have an older Medigap policy.
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If you have an older Medigap policy, you don’t have to switch.
If you buy a new Medigap policy, you have to give up your old policy . Once you cancel the policy, you can’t get it back, and it can no longer be sold because it isn’t a standardized policy.
If you bought your policy before 2010, it may offer coverage that isn’t available in a newer policy. If you bought your policy before 1992, your policy:
- Might not be a guaranteed renewable policy
- May have a bigger premium increase than newer, standardized Medigap policies currently being sold
- I’ve had my old Medigap policy for less than 6 months & have a pre-existing condition.
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The Medigap insurance company may be able to make you wait up to 6 months for coverage of pre-existing conditions. The number of months you’ve had your current Medigap policy must be subtracted from the time you must wait before your new Medigap policy covers your pre-existing condition.
- I’ve had my old Medigap policy for 6 months or more and it had the same benefits as my new policy.
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The new insurance company can’t exclude your
pre-existing condition
Does Medigap Insurance Cover Pre
Medigap is supplemental insurance you can purchase to complement your Original Medicare coverage. Medigap plans increase your coverage for costs under Original Medicare such as copays, deductibles, coinsurance, and others, depending on which plan you purchase.
Medigap plans are regulated by the federal government and sold by private insurance companies. As such, Medicare offers protections for people who purchase a Medicare Supplement plan, most commonly during a specific timeframethe six months after you apply for Part B at age 65 . This once-in-a-lifetime period is the critical time to buy a Medigap policy because, besides this window, there are typically only a few other scenarios where you have protections for pre-existing conditions.
This six-month period, called the Medigap Open Enrollment Period , ensures the insured wont be subject to medical underwriting . Outside of that six-month window after you sign up for Part B, insurance companies have the liberty to medically underwrite your policy based on pre-existing conditions .
Here are a few examples of the medical underwriting allowed by Medigap issuers if you buy a Medigap plan outside of your 6-month MOEP:
- A company may charge you more for a policy.
- A company may require you to wait up to six months before your policy begins.
- A company may deny you a policy altogether.
There is one tricky bit of fine print regarding pre-existing conditions during the MOEP, however.
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What Might Not Be Covered
All Medicare Supplement insurance plans cover Medicare Part A coinsurance for up to 365 days after Medicare benefits are used up. If you are in a pre-existing condition waiting period and you are hospitalized for a car accident, which is not a pre-existing condition for you, your Medicare Supplement insurance plan may cover your hospital coinsurance. However, for example, if you are in a pre-existing condition waiting period and you are hospitalized for an asthma-related health problem and asthma is a pre-existing condition for you, you may have to pay your hospital coinsurance out-of-pocket. Original Medicare may still pay a portion of your hospital costs.
The product and service descriptions, if any, provided on these eHealth Insurance Web pages are not intended to constitute offers to sell or solicitations in connection with any product or service. All products are not available in all areas and are subject to applicable laws, rules, and regulations.
This website and its contents are for informational purposes only. Nothing on the website should ever be used as a substitute for professional medical advice. You should always consult with your medical provider regarding diagnosis or treatment for a health condition, including decisions about the correct medication for your condition, as well as prior to undertaking any specific exercise or dietary routine.
New To Medicare?
How Does Medicare Supplement Insurance Work With Medicare
Medicare Supplement Insurance works with Original Medicare Parts A and B. If you choose to buy a standalone Part D Prescription Drug plan, Medicare Supplement works with that, too.
Medicare Supplement Insurance is different from Medicare Advantage. You can have either a Medicare Advantage Plan or a Medicare Supplement Plan, but not both at the same time.
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Improvements To Medicare’s Preventative Care Coverage
Medicare beneficiaries pay nothing for most preventive services if the services are received from a doctor or other health care provider who participates with Medicare . For some preventive services, the Medicare beneficiary pays nothing for the service, but may have to pay coinsurance for the office visit to receive these services.
Medicare covers two types of physical exams one when you’re new to Medicare and one each year after that. The Welcome to Medicare physical exam is a one-time review of your health, education and counseling about preventive services, and referrals for other care if needed. Medicare will cover this exam if you get it within the first 12 months of enrolling in Part B. You will pay nothing for the exam if the doctor accepts assignment. When you make your appointment, let your doctor’s office know that you would like to schedule your Welcome to Medicare physical exam. Keep in mind, you don’t need to get the Welcome to Medicare physical exam before getting a yearly Wellness exam. If you have had Medicare Part B for longer than 12 months, you can get a yearly wellness visit to develop or update a personalized prevention plan based on your current health and risk factors. Again, you will pay nothing for this exam if the doctor accepts assignment. This exam is covered once every 12 months.
End Stage Renal Disease Exceptions
ESRD is a condition in which a persons kidneys no longer function, and they require dialysis or a kidney transplant.
Those with ESRD can qualify for Medicare before the age of 65, as long as they meet specific requirements relating to dialysis.
Having this preexisting condition means that a person will usually get their coverage through Original Medicare only. However, a few exceptions exist in relation to Medicare Advantage .
If a person had Medicare Advantage before a doctor diagnosed them with ESRD, they would still be eligible to remain on their current plan.
They could also choose to switch to a different plan with the same insurer.
A person may also qualify for a new Medicare Advantage plan if their kidney transplant was successful, and they no longer require dialysis, or if they wish to join a specialized plan for those with certain medical conditions.
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Medigap: How Does It Handle Preexisting Conditions
Learn when Medigap can decline or have waiting periods for pre-existing health issues
If you enroll in a Medigap policy during your initial enrollment period your policy cannot deny you coverage because of a pre-existing condition. This means if you apply for Medigap when you are first eligible you are guaranteed to be approved regardless of your current health. Medigap can, in some circumstances, enforce a waiting period before treatment for certain preexisting conditions is covered.
This article was updated on March 21, 2019 to reflect new information
Medicare Advantage Special Needs Plans
Medicare Advantage Special Needs Plans include Medicare Parts A, B, and D and are only available for people with certain health conditions such as:
- autoimmune disorders: celiac disease, lupus, rheumatoid arthritis
- certain, disabling behavioral health conditions
- chronic cardiovascular disease
- chronic drug dependence and/or alcoholism
- chronic heart failure
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Copays On Medicare Advantage Plans Can Add Up
Its important to try to estimate what copays you might incur regularly based on your current medical usage.
For example, if you have diabetes and see your endocrinologist twice a month for monitoring of your condition, you will incur two specialist copays per month.
If your plan charges $35 for a specialist visit, you will spend at least $70 for those two visits. Your pre-existing conditions are going to cause you some copay spending that you can estimate ahead of time.
On the other hand, lets say that in your area you can enroll into a Medigap Plan G for $120/month. Your visits to the specialist would have no copay due whatsoever, minus your Part B deductible. The same goes for lab-testing, diagnostic imaging, surgeries, and more: nothing out of pocket at the time of service.
Youd also be able to get all your diabetes testing supplies covered at 100% from approved Medicare durable medical equipment vendors. A Medigap plan looks pretty attractive in this scenario.
Analyzing these costs will help you determine whether it makes sense to opt for the slightly more expensive but also more comprehensive Medigap coverage. Its also important to realize that if you elect a Medicare Advantage plan up front, you may not later be able to qualify for a Medigap plan again.
What Does Medicare Cover
National health spending is expected to increase by 5.5 percent per year up until 2026, when it is projected to reach approximately $5.7 trillion annually, according to the Centers for Medicare & Medicaid Services .
The CMS also says that Medicare is anticipated to account for 7.4 percent of this growth, largely due to an aging population, a factor that likely means more enrollments. That makes this federal health insurance program a substantial contributor to the spending increase over the next few years.
But what types of medical expenses does Medicare cover as part of this upward health spending trend? The answer to this question depends on which part is being used for Medicare coverage.
One of the most basic coverages provided under Medicare Part A is inpatient care in a hospital or rehabilitation facility.
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Buy A Policy When You’re First Eligible
The best time to buy a Medigap policy is during your 6-month Medigap Open Enrollment Period. You generally will get better prices and more choices among policies. During that time you can buy any Medigap policy sold in your state, even if you have health problems. This period automatically starts the first month you have
and you’re 65 or older. It can’t be changed or repeated. After this enrollment period, you may not be able to buy a Medigap policy. If you’re able to buy one, it may cost more due to past or present health problems.
Medicare Prescription Drug Coverage
Medicare Part D is prescription drug coverage that is partially subsidized by the federal government. To be eligible, you must be entitled to benefits under Medicare Part A and/or enrolled under Part B. You must choose a plan, enroll, and pay a monthly premium to get the coverage. If you have limited income and resources, you may get this coverage for little or no cost by applying for the Low Income Subsidy.
To take advantage of this coverage, you may join a Medicare Prescription Drug Plan that covers prescription drugs only and keep Original Medicare or you can join a Medicare Advantage Plan that also offers prescription drug coverage.
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Do Medicare Supplement Plans Cover Pre
For the first six months after you enroll, a Medicare Supplement plan can cover the Part A coinsurance when the visit doesnt relate to the pre-existing condition. A visit relating to a pre-existing condition wont have coverage.
Although Medicare will pay some of the hospital bills, you pay the rest. This is because Medicare doesnt have a pre-existing condition waiting period like Medigap. Those with a pre-existing condition enrolling in or changing Medigap plans outside of the OEP need to budget to ensure theyre able to cover any medical costs for six months.
Are You Considering A Medicare Supplement Plan
SHIIP’s interactive tool allows you to compare Medicare supplement by entering your age, gender the Medicare supplement plan you want to compare and whether or note you use tobacco products to receive a list of companies offering that plan along with their estimated premiums.
You will not be auto enrolled into a Medicare supplement policy and must make application directly with the insurance company. You will need to contact the insurance company that sells the specific policy that you wish to purchase, or you may contact an agent who sells the specific policy you want. We recommend that you apply at least 30 days before you want the policy to start. If you do not have thirty days, apply as soon as possible. Supplement premiums are paid directly to the insurance company and are not deducted from your Social Security payments.
What’s New for Medicare beneficiaries under age 65?
Medicare Supplemental Insurance federal regulations do not guarantee eligibility to individuals under age 65 who are eligible for Medicare due to disability. However, thirty-three states have adopted state legislation extending guarantee issue to that group of individuals. North Carolina is one of the states that legislatively mandates eligibility to individuals eligible for Medicare due to disability.
Below is the link to review the new regulation.
What is the Open Enrollment Period?
Cost of Medigap Policies
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