June is the last month to take advantage of Colorado's Special Enrollment Period (SEP) for residents who are enrolled in Medicare Supplement Plans C, F or High-Deductible F. The SEP allows people in these plans to move to other plans with no medical underwriting.
Normally if someone wants to change Medicare supplement plans, they must pass medical underwriting. To move from Plans E or J or F (“closed” plans) to go to Plan G would entail answering a couple pages of questions and listing your medications. The insurance company then can approve or deny your application. For people with complex health conditions or medications, it is usually impossible to pass medical underwriting.
For years, the Medicare supplement plan of choice was Plan F. As of January 1, 2020, this plan was closed to new applicants.
Being in a plan that is closed to new enrollees has significant negative ramifications.
We have historical data on what happens with plans that are closed to new enrollees. In 2010, Plans E and J closed to new enrollees, who are generally 65 and healthy. People who were enrolled in Plans E and J prior to 2010 could stay on those plans.
Fast forward to 2021. Now all the people on Plans E and J are 76+ and in many cases, have extensive medical issues. Claims and premiums escalated dramatically.
To put it into more concrete terms, a 75 year old non-tobacco using man on a Plan G could expect his monthly premium to be in the range of $175-$200. If that same man were on Plan J (closed to new enrollees for 10 years), the premium could be $600 per month.
These two factors:
· historical precedence of Plan E and J premium escalation following 10 years of being closed to new enrollees
· medical underwriting requirement to move from one supplement plan to another
make this Special Enrollment Period to move from Plan F to Plan G a critical opportunity to seize.
The last day to utilize this SEP is June 30, 2021 so now is the time to move from Medicare supplement Plan F to Plan G.
Mary Jo Heins is a former medical practice manager. As an independent Medicare insurance agent, she now helps people with all facets of Medicare – objectively and fee free. www.medicareinsurancehelp.com 720-484-6946