Medigap Enrollment Period – When Can I Change My Plan?

One of the most commonly held misconceptions about Medicare and Medigap plans is that there is an annual enrollment period for Medigap plans. This misconception holds that you can change plans only during this period, and you do not have to answer medical questions or “qualify” to do so. Put simply, that is just not the case. On the contrary, there is NO annual enrollment period – you can change plans at any time. Whenever you change Medigap plans, you DO have to answer medical questions (in most states).

So, how does this misconception get perpetuated and repeated to new generations of Medicare-eligible people? The main reason is because there IS an annual enrollment period, it just does not apply to Medigap plans. This annual enrollment period, which occurs from October 15 through December 7 in 2012, is for Medicare Part D (the drug coverage part of Medicare) and Medicare Advantage plans (the plans that replace Medicare). During this “AEP” (Annual Election Period), you can change your Part D plan, with the changeover taking effect on January 1. You can do this with no hassle, underwriting or penalty. This leads many people to believe that this is a Medicare annual enrollment period that applies to all plans, when in reality, it does not apply to the Medigap plans.

Changing Medigap plans is certainly possible, though. You can change plans at any time of the year. In most states and with most companies, there are underwriting criteria that determine if/when you are eligible to change. These criteria do vary from company to company. In general, you have to be in relatively good health to make a change; however, there are exceptions. A few of those are:

• If you are losing employer coverage or an Advantage plan, you have “guaranteed issue” to get a Medigap plan
• You have six months from the time that you sign up for Medicare Part B to get a Medigap plan with no underwriting
• Some companies extend a limited underwriting period past that required six month period
• There are some states in which underwriting is not used/allowed on Medigap plans – for example, WA and NY

Overall, it can seem daunting to many people to change their Medigap plans. However, it should not be that way – it is a very easy process that can be done with limited hassle or paperwork. Basically, you apply for the new plan; then, once approved, you cancel the old plan effective the same date that the new plan takes effect. There is no overlap and no gap in coverage. This can save you hundreds, if not thousands, of dollars a year.

If you have questions about the process for doing this or want to find out what your savings would be, contact us online or call us at 877.506.3378.