Medigap coverage if someone moves or wants to switch policies

If a person moves, will a medigap insurance policy still cover 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 you buy 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 you now live. 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 you 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 you now live. The department of insurance will likely grant a premium hike to the level of similar policies sold in the state.

If you're enrolled in a Medicare Part C Medicare Advantage plan but move outside that plan's service area, the plan doesn't have to continue covering you. You'll need to look for a new managed care plan that serves the area where you now lives, or you can return to traditional Medicare Part A and Part B. If you do return to traditional Medicare Part A and Part B, you're guaranteed the right to buy any Plan A, B, C, or F medigap policy offered in the state where you now live. You can buy any one of these policies without any medical screening, regardless of your medical history, and for the same premium as anyone else your age who bought the same policy at age 65.

Can someone switch to a different medigap policy?

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

Or the medigap insurance company could place a preexisting illness exclusion on the new policy that wouldn't provide you with coverage for up to six months for any condition you've 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.