My Medicare Supplement Insurance Plan Has Gotten Too Expensive. Now What?

If you're on a Medicare Supplement Insurance plan (AKA Medigap) like Plan F, Plan G, or Plan N, you may have noticed the monthly premiums creeping up in the last few years. The price increases have been a reflection of continuing inflation across multiple sectors of the economy and an aging population that is using medical services more and more.

Some may be at a decision point where their plan is no longer affordable. The good news is, you have options—especially if you're a California resident.

1. The California Birthday Rule

   Every year, you have a window for 60 days following your birthday to change your Medigap plan to the same plan with a competing insurance company. For example, if you have Plan G with Company 1, you can buy Plan G with Company 2 without any medical questions. Alternatively, you can buy a Medigap plan with Company 2 that provides less coverage if you want to save even more. We recommend working with a professional insurance agent to review your situation.

   
   

   Frequently, people ask, "What about my doctors? What if they don't accept Company 2?" The truth is, Medigap plans are secondary to Medicare. Original Medicare is always your primary insurance when you have a Medigap plan. As such, doctors don't care about your secondary, they only care about your primary. As long as they accept Medicare they'll bill whatever Medigap plan you may have in addition, whether it's Company 1 or otherwise. You're free to choose the Medigap plan that makes sense for you and your budget.

   
   

2. You Can Apply for Any Company's Medigap Plan and Go Through Traditional Underwriting

   A lot of people don't realize this, but if you want to move from one Medigap plan to a another Medigap plan, you don't have to wait for Open Enrollment OR even your birthday—you can do it any time of the year! But if you do not meet the criteria to have guaranteed acceptance, any insurance company can deny you based on your answers to medical questions. For this reason, this strategy may only work for "healthy-ish" folks. We recommend connecting with an insurance pro here as well.

   
   

3. You Can Consider Moving to a Medicare Advantage Plan

   While moving to a Medicare Advantage plan can be a great money-saving option, you do have to be aware of all the implications that come with it. First of all, this type of change can typically only be done during Open Enrollment (October 15 - December 7) unless you meet a special criteria, known as a Special Election Period. Secondly, the way you pay for your healthcare is different than how you did with a Medigap plan. It's important to know the in's and out's of the Medicare Advantage plan you're considering so that there are no surprises. While this is a signficant change, it can be very beneficial depending on your situation and what your goals are. To ensure you are making the right change, we strongly recommend a consultation with an insurance professional.

Regardless of the situation you're in, it's always encouraging to know you have options. Medicare plays such an important role in your overall health that it's never a decision you want to take lightly. If you know that something needs to change, please schedule a consultation with us by clicking the "Book a Free Appointment" button at the top of this page. Our services are complimentary to you and there is never a markup in the price of your plan due to our services.