Medigap Rate Going Up Mid-Year – Don’t Get Mad, Get Even!

January 30, 2013 by Leave a Comment

Did your Medigap rate go up in the middle of year? Don’t get mad – get even. Contrary to popular misconception, you can change Medigap plans at any time – not just at the end of the year. So there is no reason to pay “extra” premium since coverage is the same with all of the plans.

So, if your Medigap rates go up – and they will – the first thing you should do is see what other options are available for your age and zip code. It is likely that you can reduce your costs for equal coverage. In most states, there are 50 or so companies that do Medigap plans and each of them may be competitively priced in different areas, at different ages or for different standardized plans.

Many people make choosing a Medigap plan out to be a “lifetime” decision. While it is certainly ideal to choose a plan that is continually the most competitively priced and most financially stable, the reality is that insurance rates go up – Medigap rates go up, just like your homeowners or auto insurance rates. If you do not “shop” it to make sure you have the best deal, put simply, you won’t have the best deal.

So, when your rate goes up, what should you do?

  1. First, pay close to attention to how much it is going up and when. This information will be important to know in “shopping” other rates. Also, make sure you know which plan you have (i.e. G, F, N). Since plans are standardized, you can compare “like” plans.
  2. Second, we recommend that you contact an independent brokerage so that you can compare multiple companies in a centralized, unbiased place. While you can certainly call all of the 50 or so companies individually to get their rates, it does not cost you anything to use an independent broker. In fact, the knowledge that they hold can be invaluable, save you hundreds of dollars and is free to you.
  3. Compare plans with an independent broker. This can typically be done online if you are familiar with using a computer. Be careful about sites that display the rates online. There are two problems with this – it is very difficult to keep (and therefore very unlikely) these rates up to date as rates are always changing. Second, some companies do not allow their rates to be published online, so it is likely that you are receiving partial information. Most agencies will send you this information by email without requesting personal information.
  4. Once you have the information, you can compare “like” plans and make an informed, educated decision. The two factors to look at are rates and ratings. It is best to be with a higher rated company, all other things being equal, but the premium is the most important thing to consider.

If you have any questions about this process or would like to get a Medicare Supplement comparison for yourself (even if your rate didn’t just go up), it is likely that you can save money. You can reach us at 877.506.3378 or online at Medigap-Quote.com.

Filed Under: Frequently Asked Questions, Medigap Plans Tagged With: , , , , , , , , , , , ,

2013 Medigap Rates – How to Get the Best Rate

January 28, 2013 by Leave a Comment

Medigap rates are easily accessible online in today’s era of modern technology. In year’s past, you would have to contact multiple insurance companies to get rates for their various plans. This could take days of work with little to no way to compare the plans directly against one another. Nowadays, getting rates is a 5-minute process.

First and foremost, it is important to understand that Medigap plans are Federally-standardized. That is, each company is required to provide the exact same coverage for “like” plans. A Plan F is a Plan F, no matter what company you get it from. Also, you must understand upfront that the plans do not necessarily change rates with the calendar year. In other words, there are not 2012 vs. 2013 rates in all cases. Some companies do manage their rates that way (i.e. with the calendar year) but the great majority do not. Since there is not an annual enrollment period for Medigap plans (common misconception) and you can change plans at any time, rates can also change at any time. When your rate changes, it is a good idea to re-evaluate to make sure you are getting the best “deal” since coverage is the same.

Now, once you understand those things – that coverage is standardized and that rates can change at any time – let’s talk about how to go about getting the best possible rate. As mentioned above, you can certainly call each insurance company that does plans in your state to get rates from them. However, this is not the best use of time and certainly not the easiest way to do it. A brokerage is able to help you compare multiple plan options in a centralized place and give you unbiased recommendations based on their clients’ experiences. Some, including Medigap-Quote.com, are able to do this all via email. This is all, of course, at no cost to you – in fact, you are paying for it as part of your premiums anyway, whether you realize it or not.

We would recommend doing a comparison of the available Medigap plans on an annual basis. This gives you the ability to insure that you are not paying too much for one of the standardized plans. Changing plans is very easy to do if you find that you can save money by doing so.

If you want a chart showing quotes for your age and zip code or if you have questions about this information, please call us at 877.506.3378 or request quotes at http://medigap-quote.com/get-quotes.

Filed Under: Medigap Plans Tagged With: , , , , , , , , , ,

Medigap Enrollment Period – When Can I Change My Plan?

July 16, 2012 by 1 Comment

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.

 

Filed Under: Frequently Asked Questions, Medigap Plans Tagged With: , , , , , , , , , , , ,
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