Medicare supplement insurance helps take some of the financial burden off your shoulders for your health care costs. It is an important part of your health care strategy and you don’t want to risk going without it. However, if your Medicare supplement insurance plan has issued a rate increase, you may be interested in changing plans. Learning a little about your rights and responsibilities will help you when and if you decide to change Texas Medicare supplement insurance.
Standardized Coverage
All Medicare supplement insurance is standardized, meaning that a Plan F from Blue Cross Blue Shield of Texas must offer the same basic benefits as a Plan F from United Health Care. Regardless of which provider you choose, you can buy a Medicare supplement insurance plan to help pay for some of the health care costs that Medicare doesn’t pay. Basically, out-of-pocket expenses like deductibles, coinsurance, and copayments can be covered with a Medigap policy.
Guaranteed Renewability does not Mean Guaranteed Premium Rate
In Texas, Medicare supplement insurance plans are sold by private insurance companies that are licensed and regulated by the Texas Department of Insurance (TDI). All of these policies are automatically renewed each year. This means that a company cannot cancel your policy or refuse to renew it unless you made intentional false statements on your application or you failed to pay your premium. However, your premium is not guaranteed and your insurance company can raise your premium every year. Rate increases have nothing to do with where you live. Whether you live in Comal County or Dallas County, your premium may go up.
Switching Medicare Supplement Insurance
In most cases, you don’t have the right under federal law to switch Medicare supplement insurance unless you’re within some type of enrollment period or have a guaranteed issue right. However, if you choose to switch policies, make certain to compare benefits and premiums before switching. Particularly if you purchased your Medicare supplement insurance before 2010, as a new plan may not be required to offer the same benefits. Nevertheless, Medicare supplement insurance purchased before 1992 may have bigger premium increases than newer, standardized policies.
Use your 30-Day “Free Look” and Exercise Caution
Don’t cancel your old insurance until you are certain that you are going to stay with the new insurance. You have thirty days to decide if you’re going to keep the new policy. This is called your 30-day free look. However, keep in mind; you will most likely have to pay both premiums for one month.
If you are switching from Plan F from one company to Plan F from another chances are everything should be fine since they both will deliver the exact same benefits. With this situation there should be no reason to hang on to 2 policies, cancel the old plan upon approval of the new one.
It’s possible to return your Texas Medicare supplement insurance plan within 30 days to get your money back with no questions asked. However, be sure to exercise caution and keep good records. For instance, if you return a policy to United Health Care, use certified mail and hang on to your receipt. Remember, the 30-day “free look” period doesn’t apply to Medicare Advantage. If you cancel your Medigap policy to join a Medicare Advantage plan, there is always the possibility that you will not be able to get your old policy back.
Open Enrollment
Everyone who is enrolled in Medicare is eligible to join a Medicare supplement plan during what is called “initial open enrollment”. Basically, this is the six-month period when every private insurance company must sell you any of the Medicare supplement insurance plans they offer. Your initial open enrollment begins when you enroll in Part B.
You can use your open enrollment rights more than once during this six-month period. This is useful if you want to change your mind about a particular policy and buy another. Plus, you are still entitled to an open enrollment period even if you wait for several years after you turn 65 to enroll in Medicare Part B.
There are some valid reasons why you may be interested in changing your Texas Medicare supplement insurance plan. You may be paying for benefits you don’t need or maybe you want to change companies. While it is within your right to do so, exercise caution and remember to keep your old Texas Medicare supplement insurance plan until your 30 day free look period ends.
For more information on comparing rates on Texas Medicare Supplement Insurance Plans visit our website on Texas Medicare Supplements .