Medicare - Supplements Flashcards
After enrolling in Part B, what is the period in which a participant can purchase a Medicare supplement on a guaranteed basis without underwriting?
6 months.
What does the term “Guaranteed Issue” refer with regard to Medicare Supplement insurance?
During the first 6 months after enrolling in Medicare Part B, participants are guaranteed the right to purchase a Medicare supplement policy at stand pricing without underwriting, and with out the imposition of any pre-existing condition restrictions.
What happens if a Part B participant tries to obtain a Medicare supplement after the 6 month guaranteed issue period?
They will be subject to underwriting, and can be denied coverage. If they are offered coverage, the cost may be much higher than during the Medicare supplement open enrollment (aka guaranteed issued) period.
What is the Birthday Rule?
In California and Oregon, supplemental policy holders and switch supplement carriers without any underwriting (guaranteed issue) during the 30 days before and 30 days after their birthday as long as they switch to supplement with equal or lesser coverage.
From cost planning standpoint, what is the implication of the Birthday Rule?
Every year during the 60 day Birthday Rule period, clients should review their supplement policy and price shop.
T or F - Medicare supplement policy holders can attempt to switch carriers at any time during the year
True. However, unless they make the switch during the Birthday Rule period, they will have to go through underwriting and can be denied by other carriers. For this reason, policy holders who want to switch should do so during the 60 days around their birthday. If they going to try to switch at any other time, they definitely should not drop their existing policy until they are approved for replacement policy.
What is the Golden Rule of insurance?
Never drop existing coverage until you have replacement coverage in place! Avoid gaps!
