Medicare Supplement policyholders in many states have a unique opportunity to change their Medicare supplement once a year. We call this the “Birthday Rule,” and although the rule doesn’t currently apply to Texas, some experts say it’s only a matter of time before Texans are included. Bear in mind, this is not for Medicare Advantage plans, only supplements.
Here’s how the “Birthday Rule” works:
When a policyholder has a birthday, they can change their Medicare Supplement to a different insurance carrier without any underwriting as long as they choose a “like” plan. Examples would be going from Aetna’s Plan F to Cigna’s Plan F, or Mutual of Omaha’s Plan G to Blue Cross Blue Shield’s Plan G. A policyholder can also lower their plan (for example, a Plan G down to a Plan N), they just can’t increase their coverage. Folks in participating states usually have 30 to 60 days after their birthday to make these changes. The only reason most seniors make these changes is to save on their monthly premium.
Sounds great, right?
Birthday Rule “states” are notoriously expensive. Consider the insurance company’s perspective; they must accept every applicant, regardless of their health, resulting in higher claims for the carrier. They then increase premiums across the board to help offset their costs. Ultimately, this negatively impacts healthy seniors who could otherwise shop around and keep their premiums low. Seniors who have health conditions benefit because they can lower their premiums.
Remember, regardless of the Birthday Rule impact, in Texas you can switch a Medicare Supplement at any time. You do have to pass the medical underwriting standards for the insurance company you’re applying to, but we are able to help more people get approved than you may think. It doesn’t cost you anything to apply, and the coverage between carriers is identical.
I’d love to assist you in your Medicare journey. Don’t go it alone! Pay us a visit at 2604 Long Prairie Road, Suite 100, visit our website or call us at 800-750-2407.
God Bless.
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