Medigap question

[pb4uski]

DW will be eligible for Medicare in March 2020 and me in November 2020... so I started learning about Medigap. Also in 2020, we will also be moving our residence from Vermont to Florida but we have flexibility on the effective date of the move/change in domicile.

My initial research suggests that Medigap premiums in Vermont are about $40/month less than in Florida (BCBS in each case as we have had BCBS for many years).

The information that I see regarding when we move says:

You can keep your current Medigap policy no matter where you live as long as you still have Original Medicare. If you want to switch to a different Medigap policy, you'll have to check with your current or new insurance company to see if they'll offer you a different policy.

If you decide to switch, you may have to pay more for your new Medigap policy. You may also have to answer some medical questions if you're buying a Medigap policy outside of your Medigap open enrollment period.

So I'm thinking that we are better off to buy Medigap policies before we move since the monthly premium is ~$40/month less (~$80 for the two of us).

It seems like we'll save $80/month for life all else being equal. What am I missing?

 

[CRLLS]

Take this from a novice. From what I understand, you can keep your Medigap policy when you move. However You do have to notify them of the change of address and the provider has the right to charge you their going rate in your new home's area. It looks like you won't be saving that $1k per year after the move if you stay with the same policy. You also have the right to look for other companies and plans. Some options may not be offered in your present location. You and DW may have to go thru underwriting. This is not a guaranteed issue event.

BTW, we are leaving BCBS as of the 1st of the year. They are not competitive in my area. I like the idea of community rating. Perhaps Fla has that?

 

[REWahoo]

So I'm thinking that we are better off to buy Medigap policies before we move since the monthly premium is ~$40/month less (~$80 for the two of us).

It seems like we'll save $80/month for life all else eing equal. What am I missing?

Sounds too good to be true, which usually means it is.

What Happens to My Medigap if I Move?

If you enrolled in a Medigap plan in one state but move to another, you do NOT need to enroll in a new Medigap plan (unless you have a Medigap Select plan). Your monthly premium could increase if your new home area has more expensive Medigap rates.

https://www.senior65.com/medicare/article/what-happens-to-my-medigap-if-i-move

 

[pb4uski]

Yes! It did seem to good to be true.

Ok, so when I move and notify them then they might increase my premium and the increase in the premium might be more or less than the ~$40 difference in premium.

Perhaps I'll call and say that we are thinking of moving to Florida and ask how the premium would be impacted.

 

[MBSC]

Perhaps I'll call and say that we are thinking of moving to Florida and ask how the premium would be impacted.

You want to ask them if they use "issue STATE pricing" or "resident STATE pricing" when moving. This is not the same as attained-AGE and issue-AGE.

First, Medigap policies written in FL are issue-age meaning the age increases are built into the initial premium. They still experience an annual rate adjustment that takes in to account such things as medical inflation and changes to the health status of the enrollment pool. The VT policies are community rated meaning everyone age 65+ pays the same rate.

Second, typically the national insurers like UHC/AARP use resident state pricing. This means the UHC premium in VT will flip to the FL issue-age rate when moving. There are exceptions. United American has a popular F-HD plan available nationwide but they use issue state pricing so the rate stays the same after moving. Local insurers like BCBSVT are more likely to use issue state pricing because they don't know the cost of doing business in FL.

FL Medigap Rates: https://apps.fldfs.com/mcws/CWSSearch.aspx

Click on the rate column after the results are displayed to sort by rate.

 

[frank]

isn't there a clause in medicare that if you move out of the area of your current insurance you can sign up with a new insurance without the underwriting and medical questions?

 

[CRLLS]

If you have a Medigap Select or Advantage plan, and you move out of the coverage area, then yes. If you have a traditional Medigap plan then no. Then there is a maybe, if you move to a "guaranteed issue" state. I don't know about that one.

 

[zaqxsw]

Second, typically the national insurers like UHC/AARP use resident state pricing. This means the UHC premium in VT will flip to the FL issue-age rate when moving.

Using UHC/AARP as the example:

1) So, someone who is 70 will pay the current FL "issue age" 70 rate, with GI, and have the remaining UHC 21% discount (current schedule) continue?

2) They could probably still change letter plans also, with no questions, as long as they don't go to Plan G?

Thanks for any replies!

 

[MBSC]

Using UHC/AARP as the example:

1) So, someone who is 70 will pay the current FL "issue age" 70 rate, with GI, and have the remaining UHC 21% discount (current schedule) continue?

That discount is not available in FL. They would pay the issue-age rate for a 70 yr old and no longer be subject to increases due to age. The discount is available in states that allow attained-age plans and would continue if they moved to another attained-age state. Also, you keep the same plan when moving so GI is not involved.

2) They could probably still change letter plans also, with no questions, as long as they don't go to Plan G?

Only if they stay with UHC and only if UHC doesn't change the rules.

 

[zaqxsw]

MBSC,

Thank you for the excellent clarification!