There are guidelines regarding how and when you can purchase a Medigap plan. More specifically, it is important to learn the difference between a guaranteed issue Medicare supplement and open enrollment.
If you are age 65 or over and you’re currently enrolled in Original Medicare (Medicare Part A and Part B), it is likely that you’ve been at least considering the purchase of a Medicare Supplement plan. Medicare Supplement insurance provides coverage for many of the “gaps” that exist in Original Medicare.
If you are covered under Original Medicare, then you will still have access to medical care from almost any doctor or hospital in the U.S. and/or its territories. However, beyond that, Medicare coverage while traveling in a foreign country is sparse, with just a few limited exceptions.
When it comes to Medicare Supplement plans, the rates will increase over time. There are three ways in which Medigap plans increase over time; issue-age, community rated and attained-age.
The California “Birthday Rule” allows folks who have a Medicare Supplement plan to change to a different plan of equal or lesser benefit, 30 days before and after their birthday, without being subject to medical underwriting.
When comparing Medicare supplement plans and carriers it is very important to compare rates when looking at the same plan letter between companies. For example, if you are comparing Plan G between companies you want to focus on price along with several other factors.
People who enroll in Medicare after Jan. 1st 2020 will not be able to purchase plan C or F however, folks who enrolled in Medicare Part A prior to Jan. 1st 2020 will still be able to buy plans C and F.
ALL standardized Medigap plans will increase in price over time. There are several driving factors that affect the rates. Your Medicare supplement rate can increase with your age, inflation, the insurance companies internal reasons (claims, cost of doing business, etc), or a combination of all three.
Deciding when to buy a Medicare supplemental insurance policy is a very important decision. If you wait until it’s too late you never be able to buy a Medigap plan if you have health issues. It is very important to be aware of when your enrollment period is for Medicare supplement insurance.
Medicare Supplement Plan G (also referred to as the “value plan”) has become the most popular Medigap plan among our clients. It is very similar to plan F, with the exception that the Medicare Part B deductible is not covered. After the deductible, Plan G provides full coverage for copays, coinsurance, the Part A hospital deductible and the 20% that Part B does not cover.