Switching Medigap Plans

[fh2000]

I decided to start a new thread because I realized if I go down to a Plan G high deductible from a F I can’t go back because of the fact I can’t pass medical underwriting. I know I can’t pass because I just tried. Luckily Nevada has the birthday rule so I can change then without underwriting.

My motivation is cost because mine goes up 20/month every year and it’s now 200/month. A high deductible G plan would cost 52/month. Combined with part b at 170 and D at 12 it’s expensive for someone on a income of 32k/ year and I want to keep my savings for true emergencies and not spend it on monthly bills.

Keep in mind that I was under a ton of stress when initially choosing a medigap plan because I was expecting not to have to make that decision until I was 70 due to my husband being younger and my ability to stay on my state employee plan.

All of a sudden I am getting divorced, selling a house, buying a condo and having to pick a plan for life. For those of you who know more than me about the various medigap plans is there any reason this is a bad idea?

I don't know what I would do in your situation. Purely by looking at the cost, if you switch to HD-G, the deductible is $2700, which is $2467 more than the Plan G deductible.

You will be saving $148 a month; $1776 a year, but risking paying $2467 a year. That is $691 more than if you stay with Plan G.

So, if you do not see doctors a lot, you can save $1776. But, if you do, you may end up paying $691 more a year. I hope my math is correct.

 

[CRLLS]

You do understand the birthday rule in Illinois is/was effective on Jan 1 of 2022?

 

[Rianne]

This is not such a good deal.

As one is still stuck with the same Carrier (ins company). So if Moo is bad , it's still bad when a person moves to a lesser paying plan..

I'm thrown off by the effective date of 11 months ago.... as in the past.

I'm still not sure MoO is bad. Every insurance company raises rates. If MoO does close books and opens a new company, what's to say I couldn't sign up with that new company in a different plan and get a lower premium?

I asked a question in another thread and did not get many qualified answers. Since I'm new on Medicare, my question was, what were your medicare premiums when you started and what are they now? What company are you with?

The SHIP chart in Illinois shows MoO premiums from age 65-75 as an average increase, actually lower than UHC. The chart was posted in another thread and I'll try to find it and post it here.

 

[lawman]

I'm still not sure MoO is bad. Every insurance company raises rates. If MoO does close books and opens a new company, what's to say I couldn't sign up with that new company in a different plan and get a lower premium?

I've been told MoO does not allow that and even if they did you would still need to be able to pass underwriting. Why does MoO have 5 subsidiaries? The only reason I can think of is to be able to attract new business with lower rates.

 

[REWahoo]

I asked a question in another thread and did not get many qualified answers. Since I'm new on Medicare, my question was, what were your medicare premiums when you started and what are they now? What company are you with?

I don't recall whether or not I responded to your question on that thread, so...

At age 71 I changed to MoO Plan N. My monthly premium was $87.89 and after four years is now $123.08. DW is a year younger and moved to MoO Plan N at the same time. Her initial premium was $76.91 and is now $106.05.

 

[Rianne]

I don't recall whether or not I responded to your question on that thread, so...

At age 71 I changed to MoO Plan N. My monthly premium was $87.89 and after four years is now $123.08. DW is a year younger and moved to MoO Plan N at the same time. Her initial premium was $76.91 and is now $106.05.

Sorry, I edited, I see after 4 years. Not bad.

 

[REWahoo]

Sorry, I edited, I see after 4 years. Not bad.

About 8.5% increase per year. And FWIW, MoO "closed the book" on our company 12 months after we signed on with them.

 

[Rianne]

About 8.5% increase per year. And FWIW, MoO "closed the book" on our company 12 months after we signed on with them.

Does that upset you about closing the book? Does it change your coverage or benefits?

 

[REWahoo]

Does that upset you about closing the book? Does it change your coverage or benefits?

No impact to coverage or benefits. It doesn't upset me as I knew from my research it would happen at some point. It does make me want to closely monitor my rate increases.

 

[zinger1457]

Thank you for this correction! It turns out that Arizona is one of four states that are issue-age only.

Arizona also offers a few community rated plans, AARP UHC is one of them and the one I have.

 

[ejman]

Fortunately here in Oregon the birthday rule applies and one is able to switch between carriers without medical underwriting (I have plan G). Its interesting that Insurance companies continue to play the close the book increase rates game even here in Oregon. I guess Ins companies just count on people being lazy and/or not caring to compare rates. Fortunately its easy to switch and have done so several times already as rates have been increased.

 

[RetMD21]

Fortunately here in Oregon the birthday rule applies and one is able to switch between carriers without medical underwriting (I have plan G). Its interesting that Insurance companies continue to play the close the book increase rates game even here in Oregon. I guess Ins companies just count on people being lazy and/or not caring to compare rates.

Some things that are easy for the 65 year old folks look like huge obstacles to the average 85 year old.