Unlike Medicare Advantage and Prescription Drug Plans, Medigap (Medicare Supplement) plans are not restricted by the Annual Election Period (AEP). This means your clients can purchase or change their Medigap plan any time during the year—not just during AEP. However, there’s one important condition: health underwriting approval is required.
What Are Guaranteed Issue (GI) Rights for Medigap?
Guaranteed Issue (GI) Rights, also known as Medigap protections, give your clients the opportunity to buy certain Medigap plans outside of their Medigap Open Enrollment Period without worrying about medical underwriting. In these special situations, the insurance company:
- Must sell them a Medigap policy.
- Must cover all pre-existing health conditions.
- Cannot charge higher premiums due to health issues.
Which Medigap Plans Are Available Under GI Rights?
GI rights usually last for 60 to 63 days and limit the available plans to letters A, B, D, G, K, or L.
If your client became eligible for Medicare Part A before 2020, they must choose Plan C or Plan F instead of Plans D or G.
Pro Tips for Agents
- Some carriers, like UnitedHealthcare, allow clients to downgrade their plan letter without underwriting, which can be a useful option for savings.
- Keep in mind that commissions on guaranteed issue applications are often lower—always check the commission schedule.
- Certain carriers, such as Highmark and UnitedHealthcare, may offer additional plan options like Plan N under GI rights, expanding your clients’ choices beyond the standard GI plans.
Why This Matters
Knowing that Medigap plans can be purchased or changed year-round with health underwriting, and understanding GI rights, enables you to guide clients through coverage decisions outside of the usual enrollment windows—helping them secure the best plan for their needs at the right time.ding GI rights and the corresponding plan options ensures you help your clients get the right coverage when they need it most.
Contact National Insurance Markets for more information.
