Can I switch to a different Medicare supplement plan?
If you are unsatisfied with your current Medicare supplemental insurance policy, you may consider switching to a different Medigap plan. Unfortunately, in most cases, you won’t have a right under federal law to switch Medicare supplement plans. There are two exceptions, though.
First, those who are still within their 6-month initial enrollment period (meaning you have just purchased a Medigap plan for the first time), are allowed to switch to a different plan. Second, you may be eligible to switch plans under specific circumstances, so called ‘guaranteed issue rights‘. In particular situations, an insurer must sell you a Medigap policy, regardless of any existing health issues. This applies to you for example if your current insurer goes out of business or you move outside the plan’s service area.
Even if you don’t have a ‘guaranteed right’ by the means of federal law, you should call your State Health Insurance Assistance Program to find out if the requirements in your state are less strict. Next, ask your current insurance provider if they allow you to switch to a new plan. Some insurers may be generous and allow you to change plans, although you may have to go through medical screening or pay more for your new policy.
In case you decide to change insurance companies, first apply for your new Medigap policy. Once your application is accepted, contact your current insurance company and request to end your coverage.
Make sure you compare benefits and premiums carefully before switching. If you bought your plan way back, it may include coverage that is not available anymore in a newer Medigap policy. For example, since 2006 Medigap plans are not allowed to include prescription drug benefits anymore. On a flip side, older supplement plans many times have higher premiums than the newer standardized policies that are currently being sold.
If you decide to switch, don’t cancel your current plan until you have decided to keep the new one. On the application for the new plan, you will have to agree that you will cancel your first policy, but you have 30 days to decide if you want to keep the new plan. This is called your ‘free look’ period. The 30-day free look period starts when you get your new Medicare supplement plan. You will need to pay both premiums for a month, but it might be worth it to make sure that you are better off with the new plan.
