Switching Medicare Supplement plans can be a good idea. Just like any type of insurance, rates are going to go up over time, and if you have had your Medicare Supplement plan for more than a year or two, chances are good that you can switch to another company and reduce your costs for equal coverage. So, what do you need to know about switching plans?
- First and foremost, know that you can switch plans mid-year, or any time really. There are no enrollment periods for Medicare Supplement plans – also called Medigap. This is not to be confused with Medicare Advantage plans, which are privatized plans that take the place of Medicare, or Medicare Part D, which is the Rx coverage that goes with Medicare. On Medicare Supplements, you can change plans at any time and it is very easy to do, particularly if you are in relatively good health.
- When you change plans, know that the coverage is standardized. All companies go by the standardized plans chart – Medigap chart. So, a Plan F with one company is the same as a Plan F with another. This makes comparing options easy to do – it is function of price and company rating/reputation.
- Whenever possible, use an independent agency to make your comparisons and provide you with additional information that you cannot get from the companies themselves. An independent agency has no significant incentive to “push” you go to with one company over another. You can compare plans in an unbiased way and get additional information, such as a long-term stability, company ratings, underwriting specifics, etc. So, whether it is us (Medicare-Supplement.us) or someone else, using an independent agency is always a good idea.
- Make sure you do not cancel your current plan until your new one is approved. Sure, this is pretty much common sense, but we see it done incorrectly every day. Here is the process for changing Medicare Supplement plans:
- Compare plans
- Choose a plan
- Apply for the new plan with a future effective date (usually a month or so in advance)
- Once the new plan is approved, cancel the “old” plan, effective that same future date
This ensures that there is no gap or overlap in coverage.
Overall, changing Medicare Supplement plans can seem intimidating or overwhelming to many. This is what causes many people to stay on their overpriced plans and pay the “extra” amount those plans charge for the same coverage. In reality, it is advisable to compare plans on an annual or bi-annual basis, and if a savings is found, to easily make one and keep your medical costs as low as possible while maintaining the same level of coverage.
Garrett Ball is the Owner and President of Secure Medicare Solutions, Inc., which administers Medicare-Supplement.US. SMS is a leading, independent Medicare insurance brokerage, specializing in Medicare Supplement insurance. For more information or to get a Medigap comparison, you can visit us online.