If a person moves, will her medigap insurance policy still cover her medical costs?

Medigap policies are sold state by state. Not all policies are available in every state, and the same policies may cost more or less in different places. If someone buys a medigap policy in one state but then moves to another, the insurance company must continue to honor the policy. This is true even if the company doesn't sell that same policy in the state where she now lives. However, the company does have the right to raise premiums for the policy if the cost of medical care is higher in the state where she moved.

The insurance company can't just charge whatever it wants, though. It must apply for a premium increase with the department of insurance in the state where the person now lives. The department of insurance will likely grant a premium hike to the level of similar policies sold in the state.

If a person is enrolled in a Medicare Part C managed care plan but moves outside that plan's service area, the plan doesn't have to continue covering her. She'll need to look for a new managed care plan that serves the area where she now lives.

Or she can return to traditional Medicare Part A and Part B. If she does return to standard Part A and Part B, she's guaranteed the right to buy any Plan A, B, C, or F medigap policy offered in the state where she now lives. She can buy any one of these policies without any medical screening, regardless of her medical history, and for the same premium as anyone else her age who bought the same policy at age 65.

Can someone switch to a different medigap policy?

A person might learn of a medigap insurance policy that seems better for her than the one she now has. Unless she is still within six months of when she enrolled in Medicare Part B, however, an insurance company isn't required to sell her that policy. The company may first require her to undergo a medical screening, which could include examination of her health history and a physical exam by an insurance company doctor; if the company doesn't like what it finds, it could reject her.

Or it could place a preexisting illness exclusion on the new policy that wouldn't provide her with coverage for up to six months for any condition she's been treated for within the previous six months. The company can also charge a higher premium than it does for people buying the same policy when first enrolling in Medicare at age 65.