Introduction:
If you have Original Medicare plus a Medigap or Supplement, then you know about…the letters. The letters are Plans. The Plans are A, B, C, D, F, G, K, L, M and N. Sound like a mess? You are right, and this is where I tell you to consult your Independent Insurance Agent for free expert guidance. Okay, so now that is out of the way. Has anyone you know or have you yourself experienced a recent large rate hike on your premium for your Supplement? It is likely a higher increase than usual. Want to know why? And even better, do you want to know if there is something you can do about it right now?
Plan Tip #1
So, Medicare decided to do away with Plan C and Plan F. This was effective for anyone turning 65 beginning in 2020. Anyone who had these types of Supplements already by 2020 or wanted to switch to plan C or F but whose 65th birthday was prior to 2020, you could keep your Plan C/F or even enroll in one. Anyone turning 65 from 2020 and on cannot enroll in either of these plans. Why did Medicare do this? Plan F specifically is like the ‘Cadillac’ of Supplements. It covers everything, even the one time deductible per year. Medicare’s opinion then was that beneficiaries were ‘overusing’ the system since they did not have any cost share or skin in the game. Costs were rising.
Plan Tip #2
So, if I already have the great Plan F and can keep it, why do I care? Well, you may have just noticed, then, a larger than usual premium increase. They are starting to hit, and Medicare beneficiaries are taking notice. This is happening because younger and theoretically healthier people have not been entering the risk pool since January of 2020. Insurance companies are experiencing higher costs for beneficiaries in their Plan F specifically. They naturally offset this with rate increases. But all is not lost. There is something you can do about it. And you do not have to wait for an Open Enrollment Period.
Plan Tip #3
Most Medicare beneficiaries and their families do not realize this, but you can apply for a Medigap or Supplement plan ANY time of the year. You can also apply to switch to a lower premium Medigap plan any time of the year. You do not have to wait for an Open Enrollment or Special Enrollment Period. In fact, if you are thinking of applying for or changing your Supplement Plan, Independent Agents prefer that you do NOT wait until the Open Enrollment Period because we are usually swamped with folks looking to change their Advantage Plan or Part D prescription drug plan.
Plan Tip #4
What is the catch, Carrie? Unfortunately, there can be a bit of a barrier to switching to a better priced Medigap plan. Beneficiaries in this situation will be subject to Underwriting where the insurance company can check medical history for pre-existing conditions. They can deny the application or upcharge on the premium, which may end up the same as the current Plan F premium anyway. But do not let this stop you from trying!
Conclusion:
You can apply for or attempt to switch Medigap or Supplement Plans without risk of losing your current coverage. So, apply anyway, and if you get denied or upcharges and want to decline it, you can. You can decide to keep your current coverage, and it stays the same. This also has no affect on your Part D prescription drug plan. That will stay the same until you have your Agent review that during Open Enrollment. As always, I encourage you to do all of this through an expert. We are free of charge for you and will then be your advocate! For more information, email me at carrie@cdi-cares.com or check me out on www.cdi-cares.com
“The secret of change is to focus all of your energy not on fighting the old, but on building the new.”
—Socrates