Can you save money by dropping a Medigap policy?
I have a Medicare supplement plan that costs almost $200 a month. I believe that if I drop this plan and switch to Medicare Advantage, I will save money, possibly up to $150 a month. What do you think of that? George
PS I am also paying about $20 a month for a Part D prescription drug plan.
There is little doubt that George would save money by switching from these two policies to a Medicare Advantage plan that includes prescription drug coverage, known as an MA-PD plan. However, depending on where George lives, once he makes the switch, he might not be able to switch back to a Medicare supplement plan, also known as a Medigap policy. If Medicare Advantage does not work out and he wants to go back to a supplement plan, he would most likely have to demonstrate insurability. If George has pre-existing health issues, the Medicare supplement plan could delay his coverage, increase the rates, or deny coverage completely. George must evaluate his options and his health carefully.
Because states can have different rules regarding Medigap policies, check what applies to you. A handful of states offer times when a Medicare beneficiary has a guaranteed right to a Medigap policy.