Insurance Agent Forum

[dandan]

A gentleman buys a med supp at age 65 while still employed. Three years later at age 68 his company offers group coverage which is at a great price and is a very good plan.

If he purchases group, drops his med supp, and then retires 2 years later at age 70 is he guaranteed issue for med supp?

[jdeasy]

Originally Posted by dandan

A gentleman buys a med supp at age 65 while still employed. Three years later at age 68 his company offers group coverage which is at a great price and is a very good plan.

If he purchases group, drops his med supp, and then retires 2 years later at age 70 is he guaranteed issue for med supp?

According to the Choosing a Medigap Policy booklet, he would have a 63 day GI peiod under situation #2. It is subject to various state laws, however.

[Frank Stastny]

Originally Posted by dandan

A gentleman buys a med supp at age 65 while still employed. Three years later at age 68 his company offers group coverage which is at a great price and is a very good plan.

If he purchases group, drops his med supp, and then retires 2 years later at age 70 is he guaranteed issue for med supp?

To take a Med Supp he must have both Part A and Part B of Medicare. His Open Enrollment period is only for the first six months after his Part B goes into effect. In his case that expires at age 65 1/2.

When he retires, if the company will allow him to keep his group insurance he will not have the option of taking a Med Supp as Guaranteed Issue. He will have to successfully answer the health questions on the application.

If, however, his company does not make insurance available to retirees then he would have to get a letter from the company saying that he is no longer eligible.

In Missouri he would then be able to apply for a Med Supp as Guaranteed Issue. He may be limited to the plans he can take though.

As a side note, it is very doubtful that his company would have a health plan that would even come close to the benefits provided by a Med Supp.

[dandan]

Thank you both for the information. He wants to keep his Med Supp and take the group also, this will allow his wife to be covered.

His supp would have to be secondary to medicare and the group should coordinate.

[DelmarvaHealth]

Originally Posted by jdeasy

According to the Choosing a Medigap Policy booklet, he would have a 63 day GI peiod under situation #2. It is subject to various state laws, however.

This only applies if he is forced out of his group plan...not voluntarily retires.

[jdeasy]

Originally Posted by DelmarvaHealth

This only applies if he is forced out of his group plan...not voluntarily retires.

Correct, the booklet says "That coverage is ending".

State law still is the deciding factor.

[retread]

Originally Posted by dandan

A gentleman buys a med supp at age 65 while still employed. Three years later at age 68 his company offers group coverage which is at a great price and is a very good plan.

If he purchases group, drops his med supp, and then retires 2 years later at age 70 is he guaranteed issue for med supp?

I would have him contact his Med Sup carrier about "suspending" his policy.

Keep in mind, that if he joins a group insurance plan, Medicare becomes secondary payer if the employer has more than 20 employees.

Also, if he is covered by group insurance, have him contact SSA about stopping his Part B deduction. He won't need it (and if he doesn't have Part B, he can't have a Med Sup).

I would suggest you have him confirm what you tell him with his state SHIP and let him know that regulations can change in the interim, but at the present time, he would have GI returning to Medicare "B" w/ Med Sup option, as long as his group insurance is "creditable". He will not have another OEP coming back to Part B, but the GI will be for 63 days from the end of group coverage or COBRA, whichever he has at that time.
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Originally Posted by DelmarvaHealth

This only applies if he is forced out of his group plan...not voluntarily retires.

Not true.