Changing Medicare Supplement Plans

Getting a better Medigap plan after your open enrollment period

Federal law allows you the guaranteed right to buy a Medigap policy during the six-month open enrollment period, which begins the first month you have Medicare Part B and you are age 65 or older. After that, insurers can turn you down for poor health.

There are some exceptions to the rule, however. They include:

• Switching Medigap plans if your insurance company has left your service area
• Changing Medigap plans if you move out of your Medigap plan's service area
• Switching Medigap plans during your six months of open-enrollment

Some states and insurance companies also allow you to switch plans after open enrollment - even some plans that are guaranteed issue. For this reason, you can shop around to see if changing Medicare supplement plans is possible in your area.

You may have to wait six months to be covered for some benefits

After switching Medicare supplement plans, you might have to wait to be covered for some benefits. If you have a pre-existing condition, (assuming the insurer allowed you to make the switch), you might have to wait to be covered for expenses associated with that condition.

Also, if switching Medigap plans and the new plan has benefits the old plan did not have, you may have to wait to be covered for those new benefits.

Have an older Medigap policy that has been discontinued?

You might want to hang on to your older Medigap policy, especially if it includes coverage for prescription drug expenses. Currently, there are no Medigap plan designs that offer prescription drug coverage. If switching Medigap plans would dramatically increase your out-of-pocket costs for prescription drugs, know that you don't have to drop the plan just because it's no longer offered.

Take a free look when switching Medicare supplement plans

When switching Medigap plans, you can keep your old plan for up to 30 days before cancelling it. (In fact, you must promise to cancel the old plan when filling out the application for the new plan.) But you are allowed this 30-day "free-look" period in case you change your mind. However, you must pay both premiums during those 30 days.

Adding Medigap after leaving a Medicare Advantage Plan (Medicare Part C)

When you first become eligible for Medicare, you are allowed to delay your enrollment in Medicare Part B if you have other private insurance coverage, including enrollment in Medicare Advantage Plan. But, since you don't need Medigap with Medicare Advantage, you might worry that you'll miss your chance to enroll in this valuable benefit.

It's okay. Remember that your Medigap open enrollment begins the first month that you enroll in Medicare Part B - not the first month you are eligible. So if you delayed your enrollment, or if you cancelled your automatic enrollment when you first turned age 65, you can still have the guaranteed right to enroll in Medigap when you are ready for Medicare Part B.

If you already had a Medigap plan and then dropped it when you switched to a Medicare Advantage Plan, you can get the same plan back if you go back to Medicare Part b within one year. This is called a "trial right" to try Medicare Advantage. If your old plan is no longer available when switching back, then you can switch your Medigap plan with guaranteed issue.

Dropping Medigap while you have a Medicare Advantage Plan

You should drop your Medigap plan when you sign up for Medicare Advantage. It's illegal for companies to try to sell you Medigap when you buy a Medicare Advantage Plan. However, if you already have one, you have the right to hang on to it if you think you'll want to return to Original Medicare some day. Keep in mind that you'll have to pay the premium even though Medigap does not cover any out-of-pocket expenses while you do not have Original Medicare. Check your state's insurance website or Medigap insurers in your area to see if guaranteed issue Medigap plans are available. If chances are good that you can get guaranteed issue later, then it might not be worth spending the money for a Medigap premium with no benefits.