Can You Change Medicare Supplement Plans Anytime?

If you rely on Medicare for healthcare coverage, out-of-pocket costs can add up quickly. Many consumers rely on Medicare supplements or Medigap to make up the difference. Can you change medicare supplement plans anytime? The good news is, yes, you can change the supplement insurance policy anytime. However, you could be denied new plans because of health conditions.

Whether you should switch to another Medigap policy will depend on how it affects your total costs, benefits and coverage. In some cases, you can't switch without high penalties or limited coverage options. Read on to understand Medicare supplements to navigate enrollment better and choose the right plan for your needs.

Understanding Medicare Supplement (Medigap) Plans

The original Medicare consists of two parts. Part A covers hospital, skilled nursing and hospice costs. Part B covers services or supplies that are medically necessary. However, what if you need additional coverage? If you want insurance that covers deductibles, cost-sharing and catastrophic expenses, consider Medigap. 

You can choose to get a Medicare supplement plan or Medigap from a private insurance company to fill the gaps in Medicare. You can get supplemental plans lettered A through N. Each offers a standardized set of benefits, although the specifics and exact coverage may vary by plan and provider.  

For example, Medicare didn't cover many of the costs of COVID-19 treatments, leading millions of Americans to face additional out-of-pocket costs. Medigap policies also cover certain types of expenses, including emergency foreign travel expenses. 

You can find standardized Medigap supplemental plans in 47 states. The remaining three, Massachusettes, Minnesota and Wisconsin, also offer Medigap plans, but they may vary by provider. 

When Can You Change Your Medicare Supplement Insurance?

You may enroll in or change your Medicare supplement at standard times, called the open enrollment period (OEP). In some cases, you may be able to change plans at any time. Read on to understand how. 

Six-Month Open Enrollment Period (OEP)

The OEP allows you to enroll in Medicare coverage options without penalties, fees, medical underwriting or being denied coverage. Different Medicare plans have their own open enrollment periods in which a person can add a plan to their existing coverage or switch plans. Six-month Medigap open enrollment periods make it easy for you to compare and switch plans. 

The initial Medigap open enrollment period is the six-month period that begins on the first day of the month when you’re both 65 years old or older and enrolled in Medicare Part B. In some states, you can access additional open enrollment periods. 

Unless you meet specific criteria, switching to a new plan without a penalty only occurs during the OEP. If you miss open enrollment, you may have the option to enroll at another time, but it will usually cost more. 

Eligible for Guaranteed Issue Rights

If an insurance company can't deny you a Medigap policy, you have guaranteed issue rights or Medigap protections. Your guaranteed issue rights are outlined by the state where you reside. Medicare also offers a tool to help determine whether you qualify for guaranteed issue rights. 

Cases where you could be eligible for guaranteed issue rights include:

• You joined Medicare Advantage at 65 and switch back to Original Medicare within a year.
• Your Medicare Advantage plan shuts down. 
• You move out of your existing Medicare Advantage service area.
• Your employer plan that supplements Medicare ends.
• Your Medigap plan is closed.

If you drop a Medigap policy, you might not be able to get another policy right away or re-establish the policy you dropped. For that reason, it's important to wait until an open enrollment period unless you have guaranteed issue rights. 

When Should You Consider Changing Your Medicare Supplement Plans?

When changing your Medicare supplement plan, consider whether it is currently open enrollment period, your current coverage and finance needs. Here's what you may need to consider. 

Your Healthcare Needs Change

The most obvious change is if you need additional coverage or different coverage. For example, a new health condition or diagnosis may make it a good idea to get additional coverage. 

One of the biggest factors in changing Medigap plans is prescription medication coverage. You can put your drugs into Medicare.gov and find the recommended plans to make prescriptions more affordable. 

Likewise, it’s good to consider changing your Medigap plan if you have coverage you'll no longer use. For example, if you have travel evacuation coverage and are planning to travel less, you may not need to retain that coverage.

Your Financial Situation Changes

It’s good to consider changing your Medigap plan when your financial situation changes. For example, if you're in good health and on a tight budget, you might drop some Medigap coverage. On the other hand, if your budget is tight, a fixed expense can be easier to plan for. The peace of mind in knowing you won't have to face unexpected out-of-pocket expenses can be a way to save in the long term and take control of your budget. 

You Want to Explore Additional Benefits

It’s good to consider changing your Medigap plan when you want to explore additional benefits or see whether a smaller co-pay, more comprehensive coverage or additional benefits make sense for your health and lifestyle. 

You Move to a Different State

In most cases, unless you have Medigap with a nationwide provider, you'll need to change Medigap when you move to a different state. Even with a nationwide provider, the state-specified coverage may differ. For that reason, it's important to check coverage offerings. 

You Want to Switch Insurance Providers

If your insurance provider isn't offering prompt service or coverage, you may want to consider switching insurance providers. In this case, it's best to do it during the OEP to avoid additional fees and penalties. However, if you're eligible for guaranteed issue rights, you could switch providers at any time. 

Tips Before Changing Your Medigap Plans

Tips before changing Medigap plans to ensure coverage include:

• Meet deadlines: Make sure to submit your application within a maximum of 63 days after your coverage terminates to avoid further lapses in coverage.
• Keep documentation: Keep copies of letters, notices, emails or claim denials as proof your coverage is terminated to support you in case of any disputes. 
• Time the change: Plan to change your Medigap plan or sign up for a new plan when you have guaranteed issue or during the open enrollment period.

If you change plans outside of the open enrollment period or when you don’t have guaranteed issue, you could face:

• More expensive policy options
• Fewer policies available to you
• Policy denial if you don’t meet the medical underwriting requirements

Can You Suspend (Put on Hold) Your Medigap Coverage?

Yes, you can suspend or put on hold your Medigap coverage. However, the implications for your situation vary based on whether you're employed and other situations. Here is an overview of the situations in which you can suspend Medigap penalty-free. 

If Employed

You can suspend your Medigap policy without penalty at any time if you have employer-sponsored health insurance coverage. The employer-sponsored health insurance coverage may be available through your own employer or with a spouse.

If You’re New to Medicaid

If you're new to Medicaid, you can change Medigap coverage without penalties or fees within the first six months of open enrollment. According to the Department of Health and Human Services, you also have the right to suspend a Medigap policy for up to 24 months during Medicaid eligibility. You have this right if you cannot afford Medigap premiums and would otherwise have to let the policy lapse.

Get the Best Medicare Supplement Plans From Benzinga’s Top Insurance Providers

If you need support securing the best Medigap plans, Bezinga’s top professional liability providers can help. Find reliable options to meet your personalized needs while saving more. 

Which Medicare Supplement Plans Are Best for You?

Medicare supplement plans can cover the cost of costly medications, outpatient care, home care and more. If you want peace of mind knowing your medical bills are covered, Medicare can help. However, you'll need to secure supplemental coverage within your initial six-month OEP after you turn 65 and are enrolled in Medicare B. 

Which supplement plans are best for you depends on your health, finances and lifestyle. However, the Medicare.gov website is an excellent resource to check medications and understand guaranteed issue. Before canceling or suspending Medicare supplement plans, check your eligibility, costs and coverage. Find Benzinga's picks for the best Medicare supplement insurance plans to protect your health and finances here.

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