Beginning March 1, 2022, Idaho residents have a new annual open enrollment period to switch Medicare Supplement, also known as Medigap, policies without having to answer health questions or pass medical underwriting.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
Starting March 1, 2022, if you live in Idaho and have a Medicare Supplement, you will have a brand new open enrollment period every year beginning with your birthday and running for 64 days.
Here’s what you can do with this open enrollment period:
Switch to a Medicare Supplement or Medicare Select Medicare Supplement with either the same level of benefits as your current Medicare Supplement or fewer benefits than your current Medicare Supplement.
You can make this change during the 64 day open enrollment period without having to answer any health questions, provide medication lists, or go through any kind of medical underwriting.
You can make a change to a different Medigap plan with the same insurance company, or you can purchase a plan from a different company.
More info:
This link will take you to a chart at the Idaho department of insurance website that shows what changes you can make using this new open enrollment period based on what plan you currently have: https://doi.idaho.gov/shiba/new-to-medicare/medicare-supplement-medigap/recent-changes-to-medicare-supplement-law-and-rules/
Other Idaho Medigap Changes
The other big change for Idaho Medicare Supplements is Premium rates for new Medicare Supplement policies will no longer be based on the age of the applicant.
That applies whether you are just aging into Medicare and buying a Medicare Supplement for the first time or if you are changing insurance companies or plans, the premium This type of premium structure is referred to as “community rating.”
Community rating means premiums are based on a single rate for all ages and classes of individuals in the group, regardless of risk factors such as age or health.
Idaho does permit rating based on smoker status – often referred to as standard and preferred. That will be the only rating method permitted going forward in Idaho for people age 65 and older.
Idaho Medicare Beneficiaries Under Age 65
For Medicare beneficiaries who are under age 65 and qualify for Medicare due to a disability, Medicare Supplement rates can be as much as 150% of the community rate for people who are 65 or older.
Once you turn 65, your rate will decrease to the community rate.
App Fees and Discounts
The proposed rule also prohibits charging application fees and higher premium rates based on the method of payment.
Unfortunately, that means that some discounts based on paying by direct debit from a bank account, paying quarterly, semi-annually, and annually are going away for new policies.
You Don’t Have to Change Medigap Plans
If you have a Medicare Supplement and don’t want to change your plan, you don’t have to. Medicare Supplements are guaranteed renewable, so as long as you pay your premium, your policy will continue.
Any payment discounts you currently have and scheduled rate increases will continue as before.
What Will Happen to Idaho Medicare Supplement Rates?
The big question whenever a legislative change like this is made is “What will this do to Medicare Supplement rates?”
It’s too early to tell. In general, community rating does make Medicare Supplements more expensive than other rating methods for younger people but less expensive for older people.
The rates also depend on the claims experience of the group of insured people, so we’ll have to see what happens in Idaho to Medicare Supplement rates through this year and into the future.
If you have Medicare Supplement questions, please feel free to give our office a call at 877-312-1414 or schedule a free, no obligation Medicare Plan Consultation.
We’re here to keep you up to date on Medicare plan changes so you can find the best coverage option for you!
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