My parents have a Medicare supplement insurance plan; if we...

Maryann-1 asked...

My parents have a Medicare supplement insurance plan; if we want to move them to another state, do we just find another plan in that new state?

Expert Answer

You don't have to. They can keep the same policy. If your parents bought a Medigap policy in one state but they move to another state, the insurance company must continue to honor the original policy, even if the company doesn't sell that same policy in the state where your parents now live. The company can't cancel the policy or change its terms.

However, under certain circumstances the company can raise the premiums for the policy. This can happen if the cost of medical care is higher in the state your parents moved to, compared to the state where they used to live. To charge your parents a higher premium, the insurance company has to apply for a premium increase with the department of insurance in the state your parents move to. The department of insurance there will likely grant the premium increase if medical costs are higher in that state than in the state where they used to live. The new premium would be within the level of premiums charged for policies sold in the new state that are similar to your parents' policy.

Before your parents move, have them notify their Medigap insurance company, in writing, about the move, providing their new address. This will allow the paperwork to get started and may help your parents get the Medigap insurer to pay bills more quickly when they get settled in the new state.