If you haven’t compared Medigap rates in a few years, the amount you could save may surprise you

Enrolling in a Medicare supplement plan (Medigap) is an easy way to make your healthcare faster, easier, and even more affordable. But just because you found a Medigap plan that you like doesn’t mean that you can forget about it.

Here’s the thing: Medigap rates are changing all the time, as are your medical needs as you get older. Switching Medicare supplement plans helps ensure that you’re never paying more than you need to.

Should I Switch Medicare Supplement Plans

Why it might be a good idea to switch to a different Medigap plan

As you know, your Medigap insurance plan is not actually Medicare. It’s a type of add-on coverage that is designed to fill the “gaps” of Parts A & B. In other words, Medicare supplement plans cover the things that Medicare doesn’t.

But because Medigap plans are offered by insurance companies, they’re subject to the same fluctuating rates as traditional health insurance. If their enrollment levels drop, or they suddenly get a lot of claims, it could make your premium go up.  

This is the biggest reason why someone would want to change Medigap plans. To make sure they’re still getting the best rates, even if the actual coverage is the same.

Changing Medicare supplement plans: A quick guide

Still not sure if you should switch Medicare supplement plans? Here are some of the most common questions that we get about changing Medigap plans:

What are the reasons to switch Medicare supplement plans?

As we mentioned above, one of the primary reasons that people switch Medigap plans is because of rising premiums. But there are other reasons to change supplement plans, including:

  • You’re not happy with your Medigap insurance company for any reason
  • Your premiums have become too expensive and you’re trying to lower your monthly expenses
  • Your current Medigap plan has coverage that you don’t use and you no longer want to pay for
  • You have new health or medical needs and require more coverage than you used to

When is the best time to enroll in Medigap?

For most people, the best time to enroll in Medigap is during your Open Enrollment Period. This is a 6-month period that begins on your 65th birthday (As long as you are enrolled in Medicare Part B).

During your Medigap Open Enrollment, you can sign up for any Medigap plan with guaranteed issue. This means that you can’t be turned down or charged higher premiums because of pre-existing health conditions.

When is the best time to change Medigap / Medicare supplement plans?

If you’re still inside your Open Enrollment Period (< 6 months of your 65th birthday) you can switch to any other Medigap plan with guaranteed issue.

If you’re older than 65 ½, you can actually enroll in Medigap or switch plans at any time. However, you could now be subject to medical underwriting in order to qualify. That means that the insurance company can consider your health condition and medical records with your application. In some cases this means much higher premiums … in others it means that you might not be accepted.

Can I change Medicare supplement plans during the Medicare Annual Enrollment Period?

You can change your Medicare supplement plan at any time of year, though your application could be subject to medical underwriting.

The Medicare Annual Enrollment period is when you can change Part D prescription plans or Medicare Advantage Plans. The Annual Enrollment Period does not apply to Medigap.

What is the Medicare supplement “free look period?”

When you change your Medicare supplement plans, you can get a “free look period” before making the commitment. This means that you can spend 30 days with the new policy, without losing your current Medigap plan for good.

The catch: You have to stay enrolled in your current Medigap plan for the 30-day period. That means that you’ll be paying double premiums for one month. If you like your new plan, you can cancel your old policy in writing, based on your plan’s instructions. (But once you cancel your old Medigap plan, you won’t be able to get it back without medical underwriting).

If you decide to stick with your current plan, no problem. Your free look period will expire and your new plan will no longer be active.

How can I get “guaranteed issue rights” after the Medigap Enrollment Period?

If you are older than 65 ½ and need to change Medigap plans, your current health could be factored into your new rates and plan options. But there are some exceptions to this, in which you can get a new Medigap plan with guaranteed issue (no medical underwriting).

The exceptions include:

  • If your Medigap insurance company goes bankrupt, commits fraud, or causes you to lose coverage through no fault of your own
  • You’re currently enrolled in a Medicare Advantage plan, and that plan is being discontinued or you are moving outside of the service area
  • You’ve recently switched from Medigap to Medicare Advantage, and you want to change back within the first year
  • You’ve moved to an area where your old plan is not available

These are only a few examples. If you need help finding a Medigap plan with guaranteed issue, talk to your Personal Benefits Manager.

For Even More Savings, Consider the Medi-Share 65+ Alternative

Medi-Share 65+ is an innovative and affordable alternative to traditional Medigap plans for people on Original Medicare.

It’s a healthsharing plan, rather than an insurance policy – and the first of its kind designed for Original Medicare patients. It provides most of the benefits of the popular Medigap Plans G and N, at a much lower monthly cost in most cases. Medi-Share 65+ plans start at just $99 per month.

Medi-Share 65+ Overview

Medi-Share is a Christian healthsharing ministry with more than 400,000 members nationwide. Members agree to live in accordance with Biblical values, and to share each other’s medical expenses. 

Since resources are shared directly between members, Medi-Share 65+ is not an insurance plan. It’s a more affordable alternative under which Christian members agree to share each others’ medical expenses.

Medi-Share 65+ Cost Sharing Benefits

With the Medi-Share 65+ plan, you are responsible for the first $500 in Medicare Part A and B services in any given year. That amount is called your annual household portion.

After that, all costs for Medicare Part A and B services not paid for by Medicare are 100% shareable.

That is, after that first $500 per year, you pay nothing for Part A (hospitalization costs), and nothing for physicians’ fees, durable medical equipment, lab fees, Part B deductibles or copays. 

Additional Membership Benefits

  • Fast, free 24/7/365 access to board-certified doctors via telehealth
  • Select Savings card for significant discounts – even on lasik surgery
  • Discounts on dental and vision care 

Limits

No annual or lifetime limits on cost sharing, except for payments related to diagnostics and treatment of motorcycle injuries, which are limited to $100,000 in any 12-month period. (Those riding motorcycles while engaged in missionary work outside of the U.S. are exempted from this limit).

Pricing

For most people, Medi-Share 65+ costs much less per month than a Medigap Plan G, especially in areas with a higher cost of living.

Also, Medi-Share 65+ pricing does not vary with your location, like Medigap plans, but is uniform nationwide: 

  • Age 65 – 74 $99 per month
  • Age 75 and up $150 per month 

In contrast, the monthly premium for a Medigap Plan G policy averages $145 per month nationwide. But in practice, the actual monthly cost for a Medigap Plan G policy ranges from $120 to $671.84 per month. Pricing depends on your age, location, sex, and tobacco use status.

10-year Pricing guarantee

Those enrolling at age 65 receive a 10-year guaranteed price lock-in. That is, Medi-Share guarantees your pricing will not increase until you turn 75. This guarantee is not available with Medigap insurance plans.

If you have a quote for a Medi-Share Plan G or Plan N policy, it’s a good idea to compare your quote with the flat rate pricing listed above.

Consider future price increases

You should also consider your Medicare Advantage plan’s future price increase. Some Medigap plans have a low initial premium, but will increase your premiums every year as you get older.

So consider comparing the 10-year cost of ownership of a Medigap Plan G or Plan N policy against the ten-year cost of Medi-Share 65+.

Coordination with Medicare

Medi-Share 65+ acts as secondary payer to Medicare A & B and therefore anything that Medicare covers will be shared in. If Medicare A & B considers a medical condition ineligible for coverage, it will be considered ineligible for sharing under Medi-Share 65+ guidelines.

Pre-existing conditions

There is no pre-existing condition restriction if you enroll during your initial Medicare open enrollment period, which is the seven-month period that begins the third month before the month in which you turn 65.

There are also no restrictions for anyone who enrolls between October 15th and December 7th each year.

For enrollments outside of these windows, Medi-Share 65+ will begin to cover treatments for pre-existing conditions after you have been sharing for six consecutive months.

Exclusions

As  Medi-Share is a Christian healthsharing ministry organization and members agree to live by Biblical values, Medi-Share 65+ has a few exclusions you should bear in mind before signing up.

These exclusions are:

Tom Lockwood is a Personal Benefits Manager at MediGap Advisors. Tom has a passion for bringing clarity to those confused about Medicare. He is an authority on Medicare, Medicare supplement plans, Medicare Advantage plans, and Part D prescription drug plans. Read more about Tom on his Bio page.