Now that you’ve finally retired, you might be looking to move across the country to be closer to your family or move to your dream retirement home. If you move to a different state, you’re probably wondering if there will be any changes to your Medicare or Medigap policies. Because there is so much to worry about when you’re moving, a lot of people forget about the Medigap plans or their Medicare coverage, but is there anything you should worry about when moving? If you have questions about Medicare myths you have heard, we can help clear things up for you.
The good news is, if you move into a different state, you won’t have to reapply for a new Medigap policy. As long as you’re still enrolled into the original Medicare Parts A & B, you’ll keep your Medigap policy from your old state. While you won’t have to reapply, but there could be some changes coming to your Medigap policy, like higher monthly premiums if your new state has higher rates. Luckily, there is a chance you could also have lower monthly rates if the new state has lower premiums. You can research these rates before you move to eliminate any financial surprises from your big retirement move.
Because Medigap policies are Federally-standardized across most of the states, the policy that you have in your old state will likely be identical to the Medigap policy in your new state. So, don’t worry about losing any of the services covered under your Medigap policy.
If you move outside of your Medigap’s coverage area, you’ll be eligible for a guaranteed issue right for a new supplemental insurance plan. This means that the insurance company can’t deny you coverage based on your health or charge you more for your current health.
Things to Consider When Moving States
While you don’t HAVE to switch Medicare supplemental insurance policies if you move, there are a few things to consider after you move states. The first is, you still may want to consider shopping around for a new Medigap policy even though you don’t have to switch. There is a chance that you can find a plan that is cheaper or has better coverage than your previous one.
Another thing to consider is if you have a Medicare SELECT Plan. If you have one of these plans, there is a chance that your new state is outside of the service area of the plan. SELECT plans are very similar to Medigap plans, but they do have networks that they are effective in, if you move outside of that network you’ll have to find a new plan to supplement your Medicare plan.
Also, if you move to or from a state that does not comply with the standardized plans (a-n) you may have to switch policies. For instance, if you have Medicare plan F and move to Minnesota, that plan does not exist and you will have to go with one of their plans.
Similarly, if you have a Part D drug plan, you may have to find a different plan in your new state. When you move, you’ll qualify for a Part D Special Enrollment Period (SEP). During your Special Enrollment Period, you can apply for a new Part D drug plan with a guaranteed approval stipulation (even if it is during the middle of the year).
Moving With a Medigap Plan
Now that you’ve reached the retirement age, you may decide you want to pack up and move to a new state. It can be a fun and exciting move, but also stressful. There are thousands of different things you have to do any worry about before you can enjoy your new house. Be sure to add, check Medigap status to your lists of “moving to-do’s.” In most cases you won’t have much to worry about, but it is something to think about to ensure there’s no interruption in coverage and that you have the best possible plan for your new state.
MedicareWallet.com is an unbiased, online resource for individuals turning 65 or already on Medicare. Our utmost goal is to provide information in a way that is user-focused, informative and ethical. With a combined 40 years of experience in the Medicare market, we can answer any questions about Medicare and Medigap insurance. Feel free to reach out to us at 800.376.0824 or by email at [email protected].