You may have heard that Medigap companies are raising their premium rates.
Most plans use “attained age” pricing tiers–as you age, your premium prices increase. This is because the odds of developing chronic health issues, needing health maintenance tune-up surgery, or supporting long-term health conditions with monitoring or rehab increases as you age.
You can shop around for lower premium Medigap policies, but companies do NOT have to sell you one. Once you’ve had Medicare for more than six months, any preexisting medical conditions on record can be reviewed and considered by insurance company underwriters. Even the “guaranteed issue” companies can consider your pre-existing medical conditions when quoting you a premium price.
Underwriters help decide if you are a good candidate to allow into their pool of covered beneficiaries. Your preexisting conditions or behaviors might mean you are turned down for coverage, offered coverage at higher cost, or offered coverage with some stipulations about the insurance NOT covering bills related to any of your preexisting conditions. READ THE FINE PRINT!
If comparison shopping, do NOT cancel your current Medigap coverage until you have a new plan fully in place. A prospective new company can turn you down at any point in the process. You aren’t covered until you’ve paid the premium and received your card.
MMAP can give you basic info on base rate prices of Medigaps offered in Michigan. We can review your options at any time. There is no “open enrollment period” for Supplemental Medigap policies. Call MMAP for help at 800-803-7174.
