buying or renewing a health insurance plan? Here are some more problems to look out for!
Marketing methods that aren't allowed. It is against the law for a company or agent to use high pressure or scare tactics to get you to buy a Medigap policy or to make false or misleading comparisons to get you to switch from one company or policy to another. Fraudulent "cold lead" advertising is also against the law. Mailings are used in this lactic to find people who might be interested in buying insurance. If you fill out and send back the card that came in the mail, it could be sold to an insurance agent who will try to sell you a policy.
See if you have the right to renew. States now need to make sure that Medigap policies can be renewed. This means that the insurance company can't refuse to renew your policy unless you don't pay your premiums or you lied about something important on the application. Be wary of older policies that let the company refuse to renew on an individual basis. These policies offer the least long-term protection. Even if your policy is guaranteed to be renewed, the company can change the rates at any time. Some insurance policies have rates that go up as you get older.
Know who you are dealing with. To do business in your state, a company must meet certain requirements. You should check with your state's insurance department to make sure that any company you are thinking about is licenced in your state. This is to keep you safe. Agents must also have a licence from your state, and the state may require them to carry proof of their licence with their name and the name of the company they work for. Do not buy from an agent who can't prove that he or she is licenced. A business card is not the same as an ID.
Keep track of the names, addresses, and phone numbers of the agents and/or companies. Write down the names, addresses, and phone numbers of the agents and/or companies, or ask for a business card that has all of that information on it.
If you decide to buy, be careful when you fill out the application. Do not listen to an insurance agent who says that your medical history is not important when filling out an application. Some companies want to know a lot about your health. If you don't give all of the medical information asked for, coverage for any medical condition you forgot to mention could be denied for a while. The company could also refuse to pay for treatment of a condition you didn't tell them about or cancel your policy.
Look for a summary of what will be covered. You must be given a summary of the policy in clear language... READ IT WITH CARE.
Don't pay with cash. Pay by check, money order, or bank draught made out to the insurance company, not to the agent or anyone else. Get a receipt with the name, address, and phone number of the insurance company. Keep this for your records.
Delivery of Policy or Refunds Should come quickly. A policy should be sent out by the insurance company within 30 days. If it doesn't, get in touch with the company and ask for an explanation in writing. If you don't hear back in 60 days, contact the insurance department in your state.
Use "Free-Look" Provision. You must have at least 30 days to look over a Medigap policy before you buy it. If you decide you don't want the policy, send it back to the agent or company within 30 days and ask for a refund of all the premiums you paid. If you have trouble getting a refund, talk to your state's insurance department. Again, don't decide on a policy in a hurry or because you feel like you have to. Salespeople you can trust will take their time with you. If you don't understand something about a programme, you can ask the salesperson to explain it to someone else.
