All About Guaranteed Issue Rights and Trial Rights

Medicare Supplement Plans for 2018 are protected by the Federal Law. The healthcare insurance policies are controlled by rights that can reduce the risks of denied coverage. Likewise, there are rights to prevent people from buying plans that are not appropriate for them. These rights are known as Guaranteed Issue Rights or Medigap Protection.

Understanding Guaranteed Issue Rights

Medigap Open Enrollment Period is the best time to buy a supplemental policy in your region. Though this is the ideal time to buy a healthcare insurance policy, you are allowed to make a purchase outside the enrollment month. The guaranteed issue right ensures that the policy is sold to those who are 65 years or older.

The Guaranteed Issue Right becomes useful if your existing coverage changes or fails to handle your medical expenses. When such a situation arises, the healthcare insurance company sells policies that can cover your medical condition. The healthcare insurance company is not allowed to charge more or amend the Medigap policy.

 

 

Important Situations to Remember

  • Your Medicare Advantage Plan is discontinued in your state. Or, your contract is terminated by the insurance company. Or, you have relocated to another state.
    1. In this situation, your Medigap Plan A, B, C, K, F, and L will switch to the Original Medicare plan.
    2. You will not be qualified to buy a supplemental plan if you decide to invest in an Advantage plan.
  • You have an active Medicare Part A and Part B policy. Additionally, you have COBRA or retiree coverage. Unfortunately, Medicare is your key insurance provider and your COBRA/retiree coverage is coming to an end.
    1. You should not wait till the COBRA plan comes to an end. Go ahead and buy a Medigap supplemental plan.
  • You have a Medicare SELECT plan. Unfortunately, you decide to move to another state.
    1. Before you shift, talk to your insurance service provider. Check if they have a solution for you.
  • Your insurance service provider fails you. They are unable to cover your medical expenses. Or, your healthcare insurance comes to an end and it is not your fault.
    1. In both these cases, you must invest in Medigap Supplement Plan A, B, C, F, K or L.

Using Guaranteed Trial Rights

Guaranteed trial right allows insurers to switch or buy back a Medicare Supplement Plan. However, you must buy the Medigap plan within a year of purchasing the Advantage plan.