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Originally Posted by LoriNJ
Reviving this thread with a question. A relative will be turning 65 in September. He will of course sign up for Medicare prior to that. (He can sign up now, I know.) I've also advised him to buy a supplemental plan because of the "medical underwriting" rule that kicks in after the 6 month open enrollment period for supplemental plans.
My question is this: If he chooses one plan from a Medigap/supplemental insurer, can he later switch to another plan offered by the same insurer without going through medical underwriting? Or does that vary from insurer to insurer?
He's thinking he might want one of the cheaper plans now and one of the more expensive ones later when he's older. But he has a medical condition, so medical underwriting would kick in, if that is the rule.
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Depends on where he lives. Unless he lives in MA, NY, CT, CA, OR, ME or MO, he will almost certainly be required to undergo health underwriting if he later decides to switch. Circumstances for guaranteed issue vary by state, as outlined on this link:
https://www.medicareresources.org/states/
Otherwise, depending on his ailments, he may may not be accepted or charged a higher rate if his current policy becomes unaffordable.
His best choice now at age 65 is either an issue-age policy or a community-rated policy such as yours with AARP. Plan N might be a good choice - small cost sharing (Part B deductible, $20 per doctor visit, $50 ER if not hospitalized) which reduces the premium and still mitigation of rate increases because of community rating. Going forward, that small cost sharing should result in lower premium increases as well.
Issue age policies retain the same basic rate at the time one enrolls and increase premiums based on medical costs.
Community-rated AARP discounts rates for those under 77, with age-based and rate-based premium increases each year. After age 77, only premium increases are due to rises in medical costs. Whether one is 77 or 97, because of community rating, the rate is the same.
Medicare on policy pricing, here:
https://www.medicare.gov/find-a-plan...-policies.aspx
He should avoid an attained-age policy - cheaper in the beginning - but rate increases continue with some insurers until age 85. It isn't unusual for an 80+ senior to have a Medigap premium of well over $400/mo. Again, unless in a guaranteed issue state or a state, bad health can preclude switching to a less expensive policy.
He could also consider a high-deductible F which caps his 20% at $2,300. High-deductible F plans are considerably less expensive and premium increases are modest. For the reasonably healthy person, an hd-F can be a very cost-effective choice. Many here have them.