Medigap is a supplemental insurance plan that covers what it can of leftover costs after Medicare pays its share. If you have Medigap, you may be inclined to drop your plan in favor of another, or you may decide to cancel because it no longer fits your budget. Canceling can be done at any time, as long as it’s done in writing. However, canceling has to be done with some considerations in mind.
What If I Want To Switch To A New Medigap Plan?
How easily you can transition from one plan to another depends on the time period when you’re trying to execute the switch. At a certain point, you can switch to a new plan without any difficulty, but after that, you are subject to the possibility of not being able to attain another policy after canceling.
The best time to switch is during the Medigap Open Enrollment Period. At this time, you can’t be turned down. You have full guaranteed insurability and the freedom to switch plans as you please. But this is limited to a six-month period beginning when you’re 65 and enrolled in Part B.
There is also a “free look period”, which is a 30-day trial period where you can carry a new and old policy at the same time, and pay the premiums for both. In order to make use of this, you have to indicate that you’ll join the new plan within 30 days. However, you have the freedom to cancel the new policy and retain the one you initially wanted to switch from.
What If I Decide To Drop My Medigap Policy Altogether?
Canceling a Medigap policy is quick. There’s no multi-process ordeal involved, and the only requirement is that you have it as a written request. You can’t just call your plan and cancel over the phone.
But you need to consider the potential downsides – mainly the fact that you’ll no longer have the guaranteed issue rights you once did when you first signed up. Without guaranteed issue rights, you’ll have to undergo a medical underwriting process (including a medical exam) if you want to get Medigap again. You may either be rejected, or have to pay more because of past or present health issues.
However, losing guaranteed issue rights doesn’t always come down to your personal choice. Moving outside of your plan’s service area, for example, can result in loss of guaranteed issue rights. Likewise, you lose these rights if your insurance company goes bankrupt. And losing coverage due to missing premium payments can lead to the same consequence.
We Will Help You Make The Best Choice
It’s easy to be overwhelmed with so many coverage options available. But at Medicare With Jake, we’ll help you navigate the Medicare landscape so that you can make the best choice for your needs. Give us a call today at (833) NOW-JAKE.
