Guide to Timing and Choosing Your Medicare Supplement Plans

Securing the best deals on Medicare Supplement insurance often depends on selecting the right time to purchase. Medicare rules restrict when you can buy these plans at standard rates, making timing crucial. So, when is the ideal time to acquire a Medigap policy? Continue reading to get the details.

Initial eligibility period
The optimal time to enroll in a Medicare Supplement plan is during your first eligibility window.

The first six months after turning 65 and enrolling in Medicare Part B is when you can purchase Medigap plans in your state without medical screening. During this window, you can secure coverage even with existing health issues. After this period, obtaining a Medigap plan might be more complicated and costly, or even impossible.

Scheduling during open enrollment
Applying for Medicare Supplements during the open enrollment period is advantageous because insurers evaluate applications without considering health status. This ensures consistent pricing for healthy individuals and those with pre-existing conditions within this window.

Conditions for buying Medigap plans
Several factors influence eligibility conditions:

Age 65 or older
Enrollment begins when you sign up for Part B. Missing this window may lead to late enrollment penalties and restrictions on coverage options.

Turning 65
The six-month initial enrollment period starts the month you turn 65, typically from the first day of that month. The window varies by state and omits late enrollments from the original window, potentially increasing costs if delayed.

Existing employer or union coverage
If you're covered by employer-sponsored health insurance via your spouse or yourself, you might defer Part B. Once this coverage ends or your spouse retires, you become eligible to enroll. Remember, the initial period begins at age 65 regardless of ongoing employer coverage, and missing it may result in penalties.

Post-enrollment period considerations
Buying Medigap after the open enrollment can lead to application denials due to medical underwriting. Insurers may reject coverage if health questions are not answered favorably.

Some states offer Medicare SELECT policies, with the option to switch to standard Medigap within 12 months, under certain conditions.

Health issues
If you have existing health problems during your initial enrollment, you cannot be denied coverage or charged more. However, after the open period, health status can be grounds for denial.

Pre-existing conditions
Insurers may exclude coverage for pre-existing ailments for up to six months. Afterward, Medigap plans usually cover such conditions entirely.

Coverage from other sources
If you have employer or union health plans, your Medigap eligibility begins when you enroll in Part B, even if you’re still covered elsewhere.