How to Switch from Medicare Advantage to Medicare Supplement Plans

Why Switch from Medicare Advantage to Medicare Supplement?

There are several reasons why you might want to transition from a Medicare Advantage Plan to a Medicare Supplement Plan:

1. Your Medicare Advantage Plan Is No Longer Available
   Many insurance companies are cutting back on their Medicare Advantage Plans, discontinuing unprofitable options. If you received a letter stating that your plan won’t be available next year, you have the right to switch without undergoing health underwriting. This is called guarantee issue, which allows you to get a Medicare Supplement Plan with no health questions asked.
2. Your Doctors No Longer Accept Your Medicare Advantage Plan
   If your current doctors stop accepting your Medicare Advantage Plan, you may want to return to Original Medicare. By pairing it with a Medicare Supplement Plan, you can visit any doctor or hospital in the country that accepts Medicare without network restrictions.
3. You Want Better Coverage
   Many Medicare Advantage Plans require prior authorizations for treatments and tests, limiting the care you receive. Medicare Supplement Plans offer more comprehensive coverage with minimal out-of-pocket costs, eliminating these restrictions.
4. Flexibility and Freedom
   Medicare Supplement Plans provide greater flexibility. With Original Medicare and a supplement, you are not tied to an HMO or PPO network and can receive care nationwide.

When Can You Switch from Medicare Advantage to Medicare Supplement?

You can change from a Medicare Advantage Plan to a Medicare Supplement Plan during specific enrollment periods:

• Annual Enrollment Period (AEP): October 15 – December 7
  This is the best time to switch. Your new plan would begin on January 1 of the following year.
• Open Enrollment Period (OEP): January 1 – March 31
  If you missed AEP, you can still drop your Medicare Advantage Plan and return to Original Medicare during OEP. However, Medicare Supplement Plans will typically require health underwriting.
• Special Enrollment Periods (SEPs):
  If you qualify for an SEP, you may switch outside of AEP and OEP. Some common SEPs include:
  • Moving out of your plan’s service area.
  • Your Medicare Advantage Plan is discontinued.
  • Losing other creditable coverage.
  If your Medicare Advantage Plan is discontinued, you get an additional SEP from December 8 – February 28 to make the transition.

Health Underwriting: What You Need to Know

In most cases, switching from a Medicare Advantage Plan to a Medicare Supplement Plan requires health underwriting. Insurance companies will ask health-related questions and review your medical history to determine eligibility. Common questions include:

• Have you had a heart attack, stroke, or cancer in the past few years?
• Do you have any chronic conditions?

However, if your Medicare Advantage Plan is discontinued or you qualify for an SEP, you can enroll in a Medicare Supplement Plan without underwriting (guarantee issue). This means no health questions are asked, and you cannot be denied coverage.

Some states, like New York and Connecticut, allow residents to switch to a Medicare Supplement Plan without underwriting at any time.

Costs and Surprises When Switching to a Medicare Supplement Plan

While Medicare Supplement Plans provide excellent coverage, there are a few things to be aware of:

1. Higher Monthly Premiums
   Unlike most Medicare Advantage Plans, which often have low or $0 premiums, Medicare Supplement Plans have a monthly cost, typically ranging from $100 to $200+ depending on your age and location.
2. Separate Prescription Drug Plan
   Medicare Supplement Plans do not include prescription drug coverage. You’ll need to enroll in a standalone Part D Prescription Drug Plan, which costs anywhere from $0 to $100+ per month.
3. Lack of Extra Benefits
   Medicare Advantage Plans often include dental, vision, and gym memberships. Medicare Supplement Plans do not, so you may need to purchase separate policies for these services.

How to Switch from Medicare Advantage to a Medicare Supplement Plan

1. Confirm Eligibility
   Determine if you qualify for guarantee issue (no health underwriting) or if you’ll need to go through the underwriting process.
2. Compare Medicare Supplement Plans
   Work with an independent insurance agency (like us at Bluewave Insurance!) to compare options and find the best plan for your needs and budget.
3. Apply for a Medicare Supplement Plan
   • If underwriting is required, answer the health questions honestly.
   • If you qualify for guarantee issue, submit proof of eligibility (e.g., termination letter from your current plan).
4. Enroll in a Part D Prescription Drug Plan
   Once approved for your Medicare Supplement Plan, sign up for a separate Part D drug plan to ensure you have prescription coverage.
5. Automatic Cancellation of Your Medicare Advantage Plan
   Enrolling in a Part D drug plan will automatically cancel your Medicare Advantage Plan, so you don’t need to call to cancel it manually.

Final Thoughts

Switching from a Medicare Advantage Plan to a Medicare Supplement Plan can be a great move for better coverage and flexibility, but it’s essential to understand the process, costs, and timing.

If you need help comparing plans or have any questions, give us a call at 800-208-4974! We provide free consultations and personalized recommendations to make your transition as smooth as possible.

Thanks for reading, and stay informed on all things Medicare by following our updates!