When to Switch Medigap Plans: What You Need to Know

A Medicare Supplement, or Medigap, plan is an excellent tool for managing your healthcare costs and giving you peace of mind. But what happens if your premiums increase or your needs change? Many people believe they are locked into their Medigap plan forever, but that is not the case.

Switching your Medigap plan is possible and can often lead to significant savings. However, the process is different from other parts of Medicare and has important rules you need to understand. This guide will walk you through what you need to know about changing your Medigap policy, so you can feel confident in your decision.

Why You Might Want to Switch Medigap Plans

Your reasons for wanting to change your Medicare Supplement plan are unique to you. Over time, your circumstances can change, and your current policy might no longer be the best fit. Some of the most common reasons for making a switch include:

• Finding a Lower Premium: Medigap plans are standardized, meaning a Plan G from one company offers the exact same basic benefits as a Plan G from another. However, the premiums they charge can vary dramatically. You may be able to find an identical plan for a much lower monthly cost.
• Poor Customer Service: You may be unhappy with your current insurer’s service or the size and frequency of their rate increases.
• Changing Coverage Needs: Perhaps you have a comprehensive plan like a Plan F but realize a plan with a lower premium, like a Plan G or Plan N, would better suit your budget.

When You Can Switch Medigap Plans

One of the most frequent questions we hear is, “When can I change my policy?” Unlike Medicare Advantage and Part D plans, Medigap does not have an Annual Enrollment Period. The simple answer is that you can apply to switch your Medigap plan at any time of the year.

While you can apply anytime, your ability to be approved for a new plan usually depends on your health. There are, however, special situations called guaranteed issue rights, where an insurance company must sell you a policy. These situations are rare and typically happen when you lose other types of coverage involuntarily. Additionally, a few states have unique rules, such as a “birthday rule,” that give you an annual window to switch plans without medical questions.

What to Know About Medical Underwriting

This is the most critical part of the switching process. Outside of your one-time Medigap Open Enrollment Period (the six-month window when you first become eligible), insurance companies can use medical underwriting to review your application.

Medical underwriting involves the insurance company looking at your health history and asking a series of medical questions. Based on your answers and medical records, they can:

• Accept your application.
• Accept your application but charge you a higher premium.
• Deny your application altogether due to pre-existing conditions.

Because of medical underwriting, it is extremely important that you get expert guidance before applying to change your plan. Understanding which companies may be more likely to approve your application based on your health is key. You can learn more about specific situations in our guide to Medigap guaranteed issue rights.

Potential for Significant Cost Savings

The number one reason people switch Medigap plans is to save money. Since the benefits of standardized plans are identical from company to company, shopping around for a better premium is a smart financial move. It is not uncommon for individuals to save several hundred dollars, or even more than a thousand dollars, per year by switching to a different insurance carrier for the same exact plan letter.

These savings can make a real difference in your retirement budget without sacrificing a single benefit you currently enjoy. The key is to compare rates from multiple highly-rated insurance companies.

The rules around medical underwriting can be complex, but finding savings is worth the effort. Our team can help you compare plans and navigate the application process. To see how much you could save on your Medigap premium, fill out our simple online form for a free comparison quote.

Review Your Current Medigap Coverage

Before you start shopping, take a moment to assess your current situation. Pull out your insurance card and latest bill to confirm a few key details:

• Which plan do you have? Look for the plan letter (e.g., Plan F, Plan G, Plan N).
• What is your current monthly premium?
• How have the rates changed over time? Have you been receiving large annual rate increases?

Knowing where you stand is the first step in determining if a better option is available. This information will provide a baseline for comparing new quotes and deciding if switching makes financial sense for you.