Dear Toni:
I’m concerned about changing our Medicare Supplement plan that we have had for about 2 years, since we first got on Medicare. We received a pretty good rate increase in November of 2014 and I now have a new rate increase for this May 1st. I thought insurance companies could only give a one rate increase once a year. This increase is not in our budget and everything just seems to go up every year.
We are on a fixed income and my husband is concerned we are going to outlive our savings. Is there a certain time each year to change Medicare Supplements and have I missed that time period.
We really like the freedom of going to any doctor we want? We need help on deciding what our best option is? Barbara from Champion Forest area
Hello Barbara:
I have good news for you and all of my readers that are receiving rate increases to their Medicare Supplement premiums. There is not any specific annual enrollment period for changing your Medicare Supplement as there is for the Medicare Advantage plans. One can change their Medicare Supplement any day of the year.
I have been receiving many calls in the past few weeks about Medicare Supplement premiums for various companies increasing from 7% to 12% since January 1st of this year.
I am witnessing rate decreases also with certain Medicare supplement companies; one specific Medicare supplement company is giving a 14% rate decrease on certain Medicare Supplement plans. I did not say increase…I said decrease. I personally have not seen companies giving decreases in a long time!! These decreases are for new policies issued not for existing in-force policies. I have not seen any decreases on existing book of business. One could only wish an insurance company would give decreases on current policies; that would only happen in movies!
Medicare supplements also known as Medigap policies work directly with Original Medicare. The Medicare supplement is known by its specific letter such as Plan A,B,C,D,F,G,K,L,M,N. All plans offer basic benefits with some plans offering additional benefits. It seems that Plans F and G offer the richest benefits.
The most advantageous time to purchase a Medicare supplement policy is when you are first turning 65 and enrolled in Part B or when you are retiring past 65 and have just enrolled in Part B for the first time. During this time, known as Medigap open enrollment, you will have a 6-month enrollment period beginning the first day of the month where you will have a guaranteed issue period and will not have to answer medical questions.
Because you are not in Medigap open enrollment, then you will have to answer health questions, you may not qualify medically for a Medicare supplement policy with lower premiums, but you never know unless you try!!
If you cannot meet the underwriting requirements, then it may be to your advantage to keep the policy your have. Email me if you need any specifics about your situation at www.tonisays.com/ask-toni. I can help guide you through the underwriting process for a Medicare Supplement.
Caution: You may apply to replace your Medicare Supplement insurance policy at any time. However, do not cancel your existing policy until you have been approved by your new Medicare supplement insurance company.
Toni King, author of the Medicare Survival Guide® is on sales at www.tonisays.com. Email questions to www.tonisays.com/ask-toni
