Reasons for Switching Medigap policies

There can be many reasons for switching Medigap policies including reasons like, payment for benefits that are not needed, more benefits are needed than the current offer, change of the insurance company or the current Medigap policy has all the needed benefits but the cost is too much. It could be any number of reasons or a combination of the mentioned reasons. Medicare supplement plans, also known as Medigap, have a number of plans under it.

Situations under which you may need to change the Medicare supplement plan:

  1. The reason for changing the Medigap policy could be a necessity or a lookout for a better-suited plan. However, anyone might look for a change in the policy for the following reasons:
  • The current Medigap policy has benefits that do not suit the current needs
  • There is a need for additional benefits that were not needed before.
  • Change in insurance companies due to any reason.
  • Cost of the current Medicare supplement policy seems to be expensive and a less costly plan would be more suitable.
  1. If any of the circumstances fall under the guaranteed issue rights, such as the following:
  • The current insurance provider is bankrupt or is going to be or is going out of business.
  • The insurance providing Medicare supplement plans has committed fraud.
  • The insurance companies mislead or gave any false information in some way.
  1. Other situations that might lead to a change in policy:
  • The Medigap policy is older. If the Medigap policy is of the year 2010 or even before the year 1992, it might need a change. In either case, it is advisable to keep the older policies as they may contain offers for coverage that the current plans may not offer now. In case the Medigap policy is before 1992, the check if the policy has guaranteed renewable policy which in most case would not be and also may have an increase in premium.
  • Out of state: It would still be preferable to keep the current Medicare supplement plan in 2019 and not change it to another if the other state has the same policy as long as the original Medicare is applicable.
  • Medicare Select plan:

In case, there is a shift in residence and the Medicare supplement plan is the Medicare Select plan than it might change if the state is different. The solution is to buy a standardized Medigap policy from the current insurance which has the same benefits as the Select plan or use the guaranteed issue right to purchase the Medicare supplement plans A, B,C,F,K, or L.