It is generally assumed that Medicare Supplements can only be updated in October during the Annual Election Period. One of the benefits of getting a Medicare Supplement is that you are free to change Medigap plans during the year at any time. The Annual Election Period is a period set to enable Medicare beneficiaries to make adjustments for the following year to Medicare Part D or Medicare Advantage Plans.
Perhaps some people feel that by waiting until October, when AEP starts... like Black Friday after Thanksgiving, they'll get a better deal. It's not the case here. During the Annual Election Period, health insurance providers do not decrease rates or offer discounts. They actually have to file rate increases with the Department of Insurance and their premiums typically remain in place for at least a year until they are approved.
A common misconception is that you would have to pay it again if you change your Medicare Supplement during the year if you have paid your Medicare Part B deductible. Your Medicare Part B deductibles is not an insurance provider deductible, but a Medicare deductible. If you paid it in full or partly, it doesn't matter, you can always change Medigap plans.
For instance, if you transfer from Medigap Plan F to Medigap Plan G in the same calendar year and Plan F has already reached the Part B deductible, then when you move to Plan G, you do not have to pay it again. As it does every January, at the beginning of the year, the Medicare Part B deductible will reset.
Insurance companies want your company or business and will happily take it from October to December; however, because of AEP, they are slammed with Medicare business. This is their quarterly chance to make a difference for the next year for Medicare recipients who have Medicare Advantage Plans.
In reality, several individuals are also altering their Part D (prescription drug) plans during this time span as well. This puts the insurance firms under a lot of scrutinies. The extra business is done seamlessly by some carriers, while others, including the big carriers, require extra time to process applications.
Timing is everything if you would like to replace your Medicare Supplement Plan and want an effective date for the first day of the next month.
In certain cases, the Medicare Supplement application needs to be accepted by the medical underwriting department. This process will take longer than normal and change your effective date during the months of October, November, and December.
If you want to make a change during this time span, an insurance provider who specializes in Medicare Supplement insurance should know how to better direct you through the process.
Unfortunately, to tell us what the future holds, we don't have a crystal ball. Although you might be an image of good health today, tomorrow may be the day a big health concern occurs.
With a high premium, how do you get stuck? When you get older, your wellbeing improves. It's a living reality. The chances of lowering your Medigap premium are slim to zero if you have a stroke, are diagnosed with Parkinson's Disease, or have problems associated with diabetes. There are, of course, just a few examples of health problems that cause insurance applications to decline.
Both insurance providers have their own list of health issues, so if you can't answer them correctly, then sticking with your current insurance provider and their ever-increasingly high premium is your only option. Are you comfortable thinking about what the long-term impact could be if you retain the high premium of the Medicare Supplement?
CMS shares details in a section titled People Who Already Have a Medigap Policy in the CMS (Center for Medicare and Medicaid Services) booklet: Selecting a Medigap Policy Guide. This section reiterates that you have the right to buy a new policy at any time you wish if you already have a Medicare Supplement policy. There are some reasons why you would want to move to a new Medigap Policy:
You pay for services you don't need or you need more benefits than you needed before, as a Medicare user.
Another explanation for your Medigap policy to be replaced could be because you just want to adjust your insurance provider but keep the same benefits.
The most common reason for an insurance provider to adjust is that you want to find a less costly policy while also offering the same benefits. CMS states that this can be done at any time, just make sure that the same policy is compared, for example, Plan F with one insurance company to Plan F with another insurance company.
Some beneficiaries of Medicare want to wait to see what is going to happen during AEP. People want to play the wait and see game, as a person who is not always keen on change. however, how valuable it is to periodically review your premium and make adjustments when appropriate.
From October through December, nothing exciting will happen... you're not going to miss out on anything. Your insurance provider for Medicare Supplement is not going to call you up to give you a massive discount in premiums.
If you already have a high premium and are waiting to see what the next rate rise is going to be, so every month you give the insurance provider more money just to find out that you are going to give them more. Often people comment on how either way they will get a rate increase. Yes, it's real. For most insurance providers, you will usually get an annual rate rise, but if you reduce your Medicare Supplement premium, your rate is always going to be lower.
Contact us today to see how easy it is to gain substantial savings from the Medicare Supplement
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