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Medicare Supplement Plans and Guaranteed Issue Periods

Guaranteed Issue (GI) rights usually occur when current coverage for health care is modified in a given way or if you are unintentionally losing your insurance. Some insurance firms can create their own GI conditions, and they sometimes do so. There are seven GI situations as prescribed by the federal government that every insurance firm that offers Medicare supplement plans must adhere to. If you are in one of these periods, you can apply for a Medicare Supplemental Guarantee based plan.

Medicare supplement plans have “Guaranteed Issue” periods which permit people to sign up for a plan without being denied coverage, excluding pre-existing conditions or charging more for any health condition. These Guaranteed Issue (GI) rights have a federal mandate from the Medicare and Medicaid Service Centers and apply to all Medicare registrants who are in one of these specific situations.

The all new Medicare M Plan provides unique cost-sharing alternatives which are attractive particularly to Medicare recipients who are relatively healthy. Plan M provides 50% of the Medicare Part A deductible, which is $1,100 per benefit period in 2010. For example, if you are admitted to the hospital and have a Medigap M plan, you must pay half of the $1100, or $550 deductible. Current rules still apply to the deductible of Medicare Part A, in the sense that if you enroll and you depart for up to 60 days or more you will have to return within the calendar year, and you have to pay for this deductible once more.

Not all insurance companies offer the 10 plans. Plan F covers Part A and B deductibles, as well as the 20% co-insurance difference left by Medicare. For the person who wants to have all medical appointments, hospital and other exams and clinically necessary expenses fully covered, a Medigap plan would be the best option. Most insurers offer age-based plans, and your medical signature must be approved for a plan unless you submit an application during an open application period or a warranty period.

It is important to keep in mind that a subscription is not required if you apply for coverage within 6 months after age 65 or if you are enrolling in Medicare Part B, whichever comes later. Due to the rising costs of Medicare Advantage Plan awards and the growing number of physicians who choose not to participate, Medigap Plans M & N offers a number of cost-sharing features to reduce premiums for both policies compared to policies like Medicare Supplement Plan F or Plan G.