I knew it was “click bait,” but I was just too curious. I had to know what the link meant by the term “medigap trap.” Seniors can quickly become worried and overwhelmed by complicated information regarding Medicare, and my suspicion was that this link was meant to capitalize on that. I clicked in to read more. Sure enough, the term “medigap trap” was easily explained.
When a senior first turns 65 or takes out Part B, they cannot be declined for a Medicare Supplement or a Medigap plan. They can choose any plan with any company (except Plan F, but that’s for a different article). They can also keep that plan as long as they want, regardless of their health, and the plan can be renewed as long as the premium is paid. In other words, it is ‘guaranteed renewable.’
Many seniors choose Medicare Advantage plans at 65, or when they first take out Part B (after retirement, etc). This is perfectly acceptable, and many people love their Advantage Plans. What happens after they’ve been on an Advantage Plan for a few years and decide to switch to a Medicare Supplement? In short, they must be healthy enough to be approved! In other words, the application is underwritten with the insurance company. If they are not in good health, they may be stuck on the Advantage Plan.
Herein lies the “trap.” Seniors who opt for the Advantage Plan while in good health often experience a health event or a new diagnosis, resulting in a declined application for a Medigap Plan. Unfortunately, they are then forced to remain on the Advantage Plan until their health changes. Although they still have coverage, they’ll probably have more expenses. They may also end up fighting with the network a bit, which can be incredibly frustrating.
The big takeaway from the “medigap trap” is that when you are on a Medigap Plan, you can always move to an Advantage Plan, but you can’t always move from an Advantage Plan back to a Supplement Plan.
If you have any further questions, please contact one of our agents. We’ll happily sort it out for you! Call us at 800-750-2407, click here or come in and see us at 2604 Long Prairie Road, Suite 100, in Flower Mound.
God Bless!
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