So, you've decided to keep your health insurance or get a new plan. Before you buy, be sure to shop around. Policies vary in what they cover and how much they cost, and companies vary in how well they serve their clients. Do your research, talk to a few different companies, and compare their rates before you make your final decision.
- Don't buy more insurance than you actually need. Duplicate coverage costs more money and isn't needed. A single policy that covers everything is better than several policies that overlap or cover the same things. Federal law says that Medicare recipients can't get double coverage, even if both policies would pay full benefits. Most of the time, it is against the law to sell a Medicare supplement policy to someone who already has Medicaid or another health insurance plan that covers the same benefits.
In the same way, it is usually illegal to sell you any other kind of health insurance that covers the same things you already have. When you buy a new Medigap policy, the insurer must get a written statement from you saying that you plan to cancel the old policy once the new one starts. If you are on Medicaid, insurers can't sell you a Medigap policy unless the state pays the premium. Federal law says that anyone who sells you a policy in violation of these anti-duplication rules can be charged with a crime and/or pay a fine. To report possible violations, call 1-800-638-6833.
- Look for exclusions for conditions that already existed. When you look at a policy, you should see if it limits or excludes coverage for health conditions you already have. Many policies don't cover health problems you already have when you buy them. Most of the time, preexisting conditions are health problems you saw a doctor about in the six months before the policy started.
- Don't replace your current coverage. When getting a new Medigap policy, be careful. If you want to switch from one policy to another, make sure you have a good reason. You should only switch if you want different benefits, better service, or a lower price. On the other hand, don't keep policies that aren't good just because you've had them for a long time. If you decide to replace your Medigap policy, the time you spent with the old policy must be taken into account when figuring out when any restrictions on preexisting conditions apply to the new policy. You also have to sign a statement saying that you want to cancel the policy being replaced. Don't cancel the first policy until you're sure you want to keep the new one.
- Think about what else you could do. Depending on your health care needs and finances, you may want to keep the group coverage you have at work, join an HMO, CMP, or other managed care plan, buy a Medigap policy, or buy long-term care insurance.
- Don't let the words "no medical exam required" fool you. If you have had a health problem, the insurance company might not pay for costs right away that are related to that problem. Medigap policies, on the other hand, must cover conditions that were already there after the policy has been in place for 6 months.
More ideas that you might not have thought of yet...
Neither the state nor the federal government sells or takes care of policies that add to Medicare. State insurance departments have to approve the policies that insurance companies sell, but that just means that both the company and the policy meet the state law requirements. Don't believe people who say that Medicare supplement insurance is a government programme.
Above all take your time. Don't feel like you have to buy a policy. Salespeople with morals won't try to rush you. If you're not sure about a programme, ask the salesperson to describe it to a friend.
