The most popular Medigap plans, which cover gaps in Original Medicare, will no longer be available in 2020. This change is a potential disaster for many seniors. A new Google Site helps seniors find Medicare Supplement Plans in Arizona and save money.
Earlier today, MedicareWire, a senior health advocacy website, announced the immediate availability of a new resource for seniors shopping for Medicare Supplement Plans in Arizona. The new site, published on Google Sites, was designed from the ground up to help seniors identify the insurance carriers with the plan they want at the lowest rates available. The new Google Sites page is available at https://sites.google.com/medicarewire.com/medicare-supplements-in-az/home.
"When choosing Original Medicare, most seniors opt buy a private Medicare Supplement plan to help cover the shared portion of their doctor and hospital bills. The timing for signing up to get a Medigap plan can be confusing—and the long-term cost of getting it wrong can be high, " said David Bynon, founder at MedicareWire.com. "Our new web page has a single purpose: Help Arizona seniors get it right the first time."
Original Medicare, which includes Parts A and B, covers you for pre-existing conditions, however, that's not always true of Medigap plans (aka, Medicare Supplements). Medigap must cover the things that original Medicare covers, and it can't cover anything else. The amount of coverage varies based on the “letter plan” you choose. In other words, if Original Medicare covers a doctor’s procedure for a preexisting condition, and your Medicare Supplement pays some or all of the costs not paid by Medicare, then your supplement policy must pay its share.
The issue many seniors find themselves in is not buying a Medicare Supplement when first eligible or switching plans to go with a carrier that has a better rate. The issue is not whether a plan covers your costs but whether the insurer is required to sell you a policy.
One of the most important Medicare benefits seniors need to know about is "guaranteed issue rights". This is a protection, setup by Medicare, that allows you to buy a Medigap plan from any carrier, regardless of preexisting conditions. However, guaranteed issue rights are only available during a narrow window of time. If you fail to buy Medicare Supplement insurance during this period, you will need to get a physical, go through medical underwriting, and you can potentially be turned down. If you're not turned down, and you have a preexisting condition, you will pay more than the standard rate.
Underwriting penalties are typically not permitted when you first become eligible for Medicare and buy a plan during your guaranteed issue rights enrollment period. In most cases, an insurer who sells you a Medigap plan at that time can't charge you more based on your age or preexisting conditions. If you are a tobacco user, they can charge more, but they can't deny you coverage.
Guaranteed issue rights ends six months after your initial Medicare eligibility date. The Kaiser Family Foundation offer a white paper explaining all of the state-specific rules governing Medicare Supplement insurance.
This issue is particularly important in 2019, due to the fact that two of the most popular Medigap plans, Plan C and F, will no longer be available starting January, 2020. The change is based on a new law, passed by Congress, that disallows the sale of plans that cover the Medicare Part B deductible to new Medicare beneficiaries. Congress passed the law to end the popular “first dollar coverage” benefit, forcing seniors to put more “skin in the game”.
Although existing Plan C and F policy holder can renew their plans, for as long as they continue to pay the premiums, there is a growing concern that premiums on remaining plan holders will rapidly rise, forcing seniors into plans with less coverage. And, if they no longer have guaranteed issue rights, their insurer can charge them more money due to their age and health status.
"If Congress does not act this year to broaden guaranteed issue rights for existing Plan C and Plan F policy holders, I predict a massive shift to Medicare Advantage. Most seniors simply can't afford a 100% increase in their monthly premium, and many older seniors simply won't be able to get through medical underwriting," explained Bynon. "We're here to inform new Medicare beneficiaries, so they can get it right from the beginning, and help those with a Plan C or Plan F who are about to experience serious sticker shock."
Medicare.gov publishes basic information about many Medigap insurance carriers and plans, however, they have been virtually silent about the potential impact of the changes coming in 2020. MedicareWire's new Google Site offer a complete library of Arizona Medicare Supplement Plan information, including carrier reviews. Visitor can download PDF documents detailing plans, base rates, financial scores, carrier contact information, and more.
