A gentleman called me who was losing his group health coverage from a former employer. He was a retiree from a Fortune 100 company. You would recognize the name of the company immediately. As part of his retirement package, he had a very generous health plan for himself and his wife. He had been on it for decades, but the company could no longer afford to maintain it. They canceled the plan, so my client found himself cast out into the Medigap world at 92 not knowing what to do, and he didn't realize that he would need a Medigap guarantee issue to be get a plan.
Medigap Guarantee Issue Solution
When you are a Medicare beneficiary and you lose group coverage, you have what is called a guarantee issue period. It is a very limited opportunity that has an exasperation date on it. It is an incredibly important guarantee for those who have pre-existing conditions.
What is Medigap Guarantee Issue?
What is guaranteed issue for a Medigap policy? How does it work? What should you do to make sure you don't miss out? Guarantee issue for a Medigap policy applies to a number of situations. I will just speak to one-when you involuntarily lose your group health coverage while on Medicare Part A & B. Guarantee issue means that an insurance company must offer you a Medigap plan-usually plans A, B, C, & F-without asking health questions. They must sell it to you no matter your health condition. For those with pre-existing conditions that would exclude them, this is a treasure. (Each state may handle guarantee issue situations somewhat differently, but this is the general concept.)
Medigap Guarantee IssueHow Does Medigap Guarantee Issue Work?
How does guarantee issue work for a Medigap policy when you have involuntarily lost your group health coverage? The company that is ending group health coverage will usually give you sufficient time to find other coverage. You are able to purchase a supplement as early as 90 days ahead of time. After coverage has ended, you usually only have 63 days to find coverage without going through underwriting. If you miss that time frame and you have a serious health issue, you will not find a Medigap policy. You will only have Medicare.
What Should You Do to Get Your Medigap Guarantee Issue?
What should you do if you are losing your group plan that covers your Medicare deductibles and coinsurance? First get educated about Medicare. Second get a quote and start looking for a Medigap plan. Third see if you can pass underwriting so you are not restricted to the more expensive plans, but please don't doddle. There is a clock ticking in terms of your guaranteed issue period.
To summarize, you have a special opportunity to get a Medigap plan when you lose your group plan. The special opportunity is that you do not have to answer health questions for a defined period and the insurance company has to sell you a plan. You need to be aware of the rules and follow them so you do not miss out. Still try underwriting so you have more options, but you have the guarantee provision to fall back on. There are rules and time limits around guaranteed issues. Make sure you fully understand these rules and the ramifications. Call to find out the facts so you don't miss out.