So you've decided to switch from a Medicare Advantage Plan to a Medicare supplement or from one
Medicare supplement to a different Medicare supplement insurer.
There are a lot of videos on why you should do this.
This video focuses on how What is the best way to make this change with your Medicare
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Thank you. So let's start with the easy one one that will only take a moment.
Let's say that you wanna switch from one Medicare Supplement insurance company to another.
You can switch Medicare Supplement plans or insurance companies any day of the year three
hundred and sixty five days a year.
Your first step is to choose a day that you want the change to take place preferably at least
two weeks away no more than sixty days away.
You wanna have time for the Medicare underwriting to be completed.
Two or three weeks is usually very comfortable.
Keep in mind while most insurance companies will allow you to start a new policy any day of the
month, there are a few insurance companies that only allow you to start or cancel as of the
first day of a month or last day of the month Your agent will guide you on this.
Next you apply for your new supplement with the start date that you've chosen.
Now if you're hesitant because you're you're not sure if you'll qualify medically for a new supplement plan.
Look at my video where I go over what is involved in Medicare underwriting.
This will help you a lot. I have it linked above my left shoulder and in the show notes below.
Once your agent has notified you that you've passed the underwriting and the new policy is set to start as planned.
You contact the insurance company for your old plan and tell them that you would like to cancel
as of midnight the day before your new plan starts.
You should be able to find the customer service phone number on your Medicare on the card.
And if you wish you can also request an email address to send a cancellation request so you have
paper trail in addition to the phone call.
That's it It's that simple…Now let's say that you
have a Medicare Advantage Plan and you wanna switch to a Medicare supplement.
How do you do that? First it's important to understand that other than special enrollments
there are only two time periods during the year when you can switch
from an advantage plan back to original Medicare.
The most well known time period is from October fifteenth through
December seventh, for January one's switch date.
That's the annual election period.
The second time period is from January one through March Thirty one the first three months of
the year And that period is referred to as the Medicare Advantage Open Enrollment.
Now we're not gonna cover special enrollments or guarantee issues special events
in this video, and that we've covered in other videos.
Your first step in the process of switching to a Medicare supplement is to choose a supplement
and choose the insurance company and then apply for the Medicare supplement.
Again, check out my video on the Medicare underwriting for an understanding of that process.
If you are doing this during the October fifteenth through December seventh annual election
period you apply for a January one start date.
The annual election period that ends December seventh is the busiest time of year for our
industry and the most difficult time period to deal with the time constraints of medical underwriting.
During this time of year you must apply for your supplement early enough to give time for
underwriting to easily be completed…before December seventh.
Both insurance companies and experienced agents are very busy this time of year.
Why is it important to apply for a supplement early during this time period?
Because you need a stand alone Part D prescription drug plan
to go with your original Medicare and supplement.
You must apply for the Part D plan by the end of business on December seventh, or you will be
without a Part D plan for a full year and will face penalties.
The only way to apply for Part d plan after December seventh is If you have an existing Medicare
Advantage Plan as of January one that you wanna
convert back to original Medicare.
And again this doesn't include special enrollments or your initial enrollment or all of that.
Please understand when you apply for a stand alone Medicare Part D
plan Medicare cancels your advantage plan.
Because you cannot have both an advantage plan HMO or PPO and a standalone Part D plan.
Medicare cancels the advantage plan as of the start date that you selected for Part D.
The January one through March thirty one enrollment period is only for people who have an active
Advantage Plan on January one.
If you start the new year and your Advantage Plan was already canceled because you enrolled too
soon in the Medicare Part D plan, you'll not be eligible for the Medicare Advantage Open Enrollment.
Now you can still apply for a supplement But if you don't pass underwriting, you'll be without
an advantage plan for the entire year.
The bottom line is that if you apply for a Part D plan for you know you've passed medical
underwriting for a supplement, you can find yourself without either an advantage plan or a supplement.
Now for some, That's a disaster and that is what we're trying to avoid.
We advise our clients that if you're trying to convert from an advantage plan, and are not able
to apply for a supplement plan before Thanksgiving.
It's best to target the January one through March thirty one time
period for your switch from Medicare Advantage to a supplement.
So as I record this video just after Thanksgiving in two thousand twenty three, it's time to
start looking at the Medicare Advantage Open Enrollment period for the transition away from an Advantage Plan.
This is a very simple process, and the more you understand the less stressful it is.
Because we cannot get a January one start date The first thing you do is nothing.
Do nothing with your Medicare Advantage Plan and it will automatically roll over into two thousand twenty four.
The second thing you do is apply for a supplement with a February one start date.
The reason we choose February one is that is the earliest that you can transition…using the
January through March enrollment period.
Advantage plans can only be canceled as of the end of the month.
Part d plans can only start as of the first of a month.
If you pass a Medicare Supplement underwriting then on or after January one you simply enroll in
the standalone Part d plan using that specific enrollment period and Medicare will cancel your
advantage plan for a seamless transition back to original Medicare and starting your supplement.
If you choose not to act until February or March, your transition will be on the first day of
the month following your application for Part D.
If you apply for standalone Part D plan in February, it will start March one.
If you apply in March it will start April one.
Just as an FYI. Most supplement plans will accept
applications for a February one start date sixty days ahead of time.
Unfortunately, there's one company United American who will not accept supplement applications
until January one for the Advantage Plan enrollment period.
That was the case last year And as of the date of this recording
, there always has to be at least one odd man out.
Last point, Let's say that you didn't pass medical underwriting.
That means you can't get a supplement but you don't like your advantage plan.
During the January through March enrollment period you can also make one change with your advantage plan.
This includes choosing a new advantage plan.
So if you don't pass underwriting for a supplement, you still
have the opportunity to reshop your advantage plan.
So there you have it. I hope this helps.
Tell me are you considering changing from an advantage plan to a
supplement or to change from one supplement company to another?
Please let me know in the comments below and let me know if this brief explainer
video helps reduce your stress level over all of this stuff.
We do our best to make this a simple low stress process.
So please reach out to us for personalized help.
I'm Matthew Claassen with Medigap seminars dot org.
Thank you for watching
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