My mailbox is being flooded with ads about switching my Medigap policy to a Medicare Advantage plan, a prescription drug plan – Part D, or a different Medigap company. I’ve also seen dozens of TV ads and received lots of emails. Some of the ads offer plans with premiums “from $0 a month” and use terms such as “urgent” and “don’t delay.”
The deadline for switching to Medicare Advantage or a prescription drug plan – Part D is Dec. 7.
What is Medicare Advantage and what’s all the hype about?
Medicare Advantage a way to combine Original Medicare and supplemental or Medigap policies. The companies receive a federal payment per person per month to manage Medicare benefits for recipients. Instead of receiving statements from Medicare and your Medigap company, you’ll just get one statement.
I’m not a fan of Medicare Advantage plans. Some members of Congress think giving private companies extra money to manage Medicare recipients’ benefits is too expensive. As a result, Medicare Advantage plans could be changed significantly or eliminated.
Other disadvantages:
- Insurance companies may use high-pressure sales to get seniors to switch to Medicare Advantage plans.
- Comparing insurance policies is difficult. Unless seniors are careful, they could end up paying more money for fewer services.
- Seniors may have to change doctors and hospitals.
- Some Medicare Advantage plans don’t offer prescription drug benefits.
- Seniors may have to wait for the next enrollment period to transfer out of the plan if they don’t like it.
What the hype is about is trying to get you to switch out of the Medigap policy you have into what the companies are offering. They don’t have the best interests of the consumer in mind, just making more money.
And, be wary of getting a policy with a $0 premium. That means you’ll be getting fewer services and paying much higher deductibles. Watch the relationship between premiums and deductibles. The lower the premium, the higher the deductible.
Why would you want to switch Medigap policies?
- You’re paying for benefits you don’t need.
- You need more benefits than you needed before.
- Your current Medigap policy has the right benefits, but you want to change your insurance company.
- Your current Medigap policy has the right benefits, but you want to find a policy that’s less expensive.
If you have Original Medicare and a Medigap policy, insurance that covers what Medicare doesn’t pay for, you can may be able to switch to a different Medigap policy at any time. Check with your state’s insurance commissioner for what’s allowed in your state.
However, if you do decide to switch, you could lose some of the protections that you have because you bought the policy within six months after you began receiving Medicare. Check also with your state insurance commissioner’s office because some states offer more protection than federal law.
Remember, you can only switch a Medicare Advantage plan or prescription drug plan – Part D during a specific enrollment period, Oct. 15 to Dec. 7.
If you plan to switch, do thorough research. Don’t get discouraged, because it’s complicated.
To get help on how to enroll or what policy is best for you, contact your State Health Insurance Assistance Program. You can find the number for your SHIP by visiting www.shiptacenter.org.
For additional information on Medigap policies in your state, you can also contact your State Department of Insurance.
