When is the right time to Purchase a Medigap Policy?
The best time, indeed one of the only times you really should purchase your Medigap Policy is during your Open Enrollment Period. Your open enrollment period to apply for Medicare Benefits begins on the first day of the month in which you are both over65 years of age, and have already enrolled in Medicare Part B. Open enrollment continues for 6- months subsequent to that. We cannot stress how important it is to take advantage of this 6-month period to do your research and obtain your Medigap insurance plan, because during open enrollment you cannot be turned down for Medigap regardless of your health.
During the open enrollment period any insurance company cannot subject your application for Medigap Insurance to medical underwriting. Which means they cannot:
- Refuse to sell you any Medigap Insurance plan that it offers for sale
- Make you wait for coverage to start - except they may be able to place a waiting period of up to 6 months on some pre-existing conditions.
- Charge you more for a Medigap policy because of any health issues
While during the open enrolment period is certainly the all around best time for most individuals who qualify to purchase a Medigap plan, there are other times when you cannot be denied Medigap Coverage. These are known as Medigap Protections, or your Guaranteed Issue Rights.
Guaranteed Issue Rights
Guaranteed issue rights are the circumstances under which an insurance company is bound by the same parameters to sell you a Medigap Plan as under open enrolment. These circumstances usually refer to situations in which you have some kind of qualifying existing coverage that was taking the place of Medigap, and that coverage is ending through no action of your own. Examples would be if you are enrolled in traditional Medicare, but your additional out-of-pocket expenses were covered by a group health plan from a spouse’s employer or a former employer, and those benefits are ending. Another situation where you have a Guarantee Issue of a Medigap Plan is when you have an existing Medigap Plan and your insurance company is no longer solvent, or will discontinue selling that particular plan.