Can You Switch From One Medigap Company to Another?

It is possible to switch from one Medigap company to another, or even to a different Medigap plan with the same company. Medigap plans (Medicare Supplement plans) are private insurance policies designed to help cover out-of-pocket costs that Original Medicare (Part A and Part B) does not pay, such as deductibles, copayments, and coinsurance. Individuals often switch Medigap plans for lower premiums, a different company experience, or a plan that better aligns with their healthcare needs. While benefits for standardized Medigap plans with the same letter are identical across insurers, premiums can vary significantly.

Understanding Medigap Switching Rules

Switching Medigap policies involves specific rules that determine whether medical underwriting is required. The Medigap Open Enrollment Period is a six-month window that begins the first month an individual is 65 or older and enrolled in Medicare Part B. During this period, federal law mandates that insurers cannot deny coverage or charge higher premiums based on health status or pre-existing conditions. This provides a guaranteed right to purchase any Medigap policy sold in the state.

Outside of this initial enrollment period, most states require medical underwriting when switching Medigap plans. Medical underwriting involves health questions and a review of medical history. An application may be denied, accepted with a higher premium, or subject to a waiting period of up to six months for pre-existing conditions. However, some states have rules, like a “birthday rule,” allowing switches without medical underwriting around a birthday, typically to a plan with equal or lesser benefits.

Certain situations also grant individuals “guaranteed issue rights,” meaning insurers cannot deny a Medigap policy regardless of health status, even outside the initial open enrollment period. Scenarios include losing employer coverage, a Medicare Advantage plan leaving the service area, or termination of a current Medigap policy. These rights generally apply for a limited timeframe, often 63 days after prior coverage ends. Trial rights also exist for those who initially chose a Medicare Advantage plan but wish to switch back to Original Medicare and a Medigap plan within a specific period, typically 12 months.

Preparing to Switch Your Medigap Plan

Before initiating a switch, gather information about your current Medigap policy. Gather your plan letter (e.g., Plan G, Plan N), current monthly premium, policy number, and effective date. This information helps compare new plans.

Beyond premiums, consider the financial stability of the insurance company, often reflected in their financial ratings, and their reputation for customer service. Reviewing potential future rate increases is also a practical step, as some insurers may offer attractive initial rates that increase more steeply over time. Balance cost savings with company reliability and the plan’s alignment with your healthcare needs and budget.

The Process of Switching Medigap Plans

Once you have prepared and selected a new Medigap plan and company, the next step involves the application process. Apply for a new Medigap policy directly with the chosen insurer, through an independent insurance agent, or online. The application requires personal details, current Medicare coverage information, and health information if medical underwriting is necessary.

After submitting your application, the insurer will review it and, if applicable, conduct medical underwriting. Upon approval, you will receive confirmation of your new policy and its effective date. Coverage typically begins on the first day of the month following your application or a specified future date.

Avoid canceling your existing Medigap policy until your new policy is fully approved and in effect. Many policies offer a 30-day “free look” period to review the new policy. During this overlap, you will pay premiums for both, ensuring continuous coverage. Once the new policy is active, formally cancel your old policy, usually by written notification.