The ads on TV, radio, and online are constant during the Medicare Annual Enrollment Period from October 15 through December 7. We can’t escape hearing about new plans, new benefits, low rates, new extras.
Unfortunately, the advertising is sometimes confusing. The ads can make it sound like every single kind of Medicare Plan changes every year, and that’s just not the case.
Two of the most common questions clients ask during the Annual Enrollment Period are: “Should I review my Medicare Supplement? Is it changing for the new year?”
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
AEP: Not for Medigap
The Annual Enrollment Period occurs every year from October 15 through December 7 and applies to Medicare Advantage plans and Medicare Part D plans but NOT Medicare Supplements, also known as Medigap policies.
These are much older plans that follow different enrollment rules. You can change your Medicare Supplement plan any time during the year.
However, in most states, and under most circumstances, after you have been on Medicare Part B for more than 6 months, you will have to answer health questions and provide a list of your medications and pass underwriting in order to be able to purchase a new policy.
There are exceptions based on state laws, and there are some guaranteed issue Medicare Supplement companies that accept everyone age 65 or older who has Medicare Parts A and B, but unlike Medicare Advantage and Part D plans, there is no nationwide annual enrollment period for Medicare Supplements during which you can choose the one you want and enroll.
Medicare Supplement Benefits
Generally, Medicare Supplement benefits also don’t change from year to year. The high deductible Medicare Supplements may have a change in their deductible amount, but the benefits themselves don’t change.
It’s very rare for any changes to occur for Medicare Supplement plans. Usually, any changes are due to new legislation.
For example, after Medicare Part D prescription drug plans were released about 15 years ago, Medicare Supplements were no longer allowed to include drug coverage, and more recently, due to a 2015 law, Medicare Supplements that cover the Medicare Part B annual deductible, Plans F and C, are no longer allowed to enroll anyone whose Medicare Parts A and B effective dates are Jan 1, 2020 or later.
What about rate changes?
Medicare Supplement rates generally change once a year. However, that change isn’t necessarily on January 1. More commonly, your Medicare Supplement rate will change (and usually increase) during the month when you originally purchased the policy or your birth month.
Changes Connected to Medigap Plans During AEP
For the most part, Medicare Supplements exist completely outside the universe of the Medicare Annual Enrollment Period. However, there are a few changes you can make during the AEP that involve Medicare Supplements.
1. You can leave a Medicare Advantage plan and return to Original Medicare Parts A and B.
If no Medicare Advantage option for the new year works for you, you can leave your Medicare Advantage plan and return to Original Medicare, Parts A and B, during the Annual Enrollment Period.
However, don’t assume that if you leave a Medicare Advantage plan and return to Original Medicare during the AEP that you will be able to purchase a Medigap plan. If you don’t have a guaranteed issue right and are past your first 6 months on Medicare Part B, you will need to answer health questions and pass underwriting to purchase a Medicare Supplement.
That’s definitely something to look into before leaving your Medicare Advantage plan. The health questions for Medigap underwriting do vary from company to company, so a broker will be able to assist you in finding a company that is likely to accept your application, if at all possible.
If you are thinking of leaving your Medicare Advantage plan during the AEP and want to purchase a Medicare Supplement plan, start the process early. If you apply for a Medigap plan on October 15 with a January 1 effective date, which is the earliest you can leave your Medicare Advantage plan, you should have an answer with plenty of time left in the AEP to apply to a different Medigap company if the first one doesn’t accept your application.
2. You can also switch from Original Medicare with a Medicare Supplement and Part D plan to a Medicare Advantage (MAPD) plan.
If the new year’s Medicare Advantage plans are a better fit for your situation than your current coverage of Original Medicare plus a Medicare Supplement and Part D plan, you can drop your Medicare Supplement and Part D plan and enroll in a Medicare Advantage plan with Part D coverage included during the Annual Enrollment Period.
If you choose this option, your standalone Part D plan will be automatically canceled, but you will need to request that your Medicare Supplement company end your coverage on December 31.
What if you have a Medicare Supplement plan you’re happy with?
Medicare Supplement plans are guaranteed renewable as long as you pay the premium. You do not need to do anything during the Annual Enrollment Period if you want to keep the Medigap plan you have. It will continue in the new year.
If you have questions about your Medicare coverage and what you should do during this year’s AEP, 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 help you have a stress-free AEP and make sure you are in the best Medicare plan for your unique situation!
Leave a Reply