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Dear Avisery Members,
We wanted to share an important reminder about an annual limited time opportunity for Medicare beneficiaries with disabilities under age 65 to purchase a Medigap policy (also referred to as Medicare Supplement policies) if they did not purchase a policy when first eligible for Medicare. In Illinois, Medicare beneficiaries with disabilities under age 65 who did not purchase a Medigap policy when they were first eligible during their Medigap Open Enrollment Period are able to purchase a Medigap policy from one company, Blue Cross Blue Shield (BCBS) of Illinois, from October 15 through December 7 of each year.
Background
Federal law does not require Medigap companies to sell polices to beneficiaries with disabilities under age 65, but many states, including Illinois, have passed laws that require Medigap companies to sell policies to beneficiaries under 65 during the first six months they are eligible for Medicare Part B. This six-month period is known as a beneficiary’s Medigap Open Enrollment Period (OEP) and is often the best time to purchase a Medigap plan. During their Medigap OEP, beneficiaries under age 65 can purchase a policy from any company without being denied coverage for pre-existing health conditions.
Beneficiaries with disabilities under 65 may be charged the highest premium rate on file with the Illinois Department of Insurance, but cannot be denied coverage. Once their Medigap OEP 6-month period ends, Medigap companies are no longer required to issue beneficiaries under age 65 a policy. As a result, this limited time opportunity offered by BCBS of Illinois is the only time a beneficiary under age 65 is able to purchase a Medigap policy from BCBS of Illinois if they are beyond their Medigap OEP.
Once beneficiaries with disabilities turn 65, they will receive a new six-month Medigap OEP to purchase a policy based on turning 65 and not due to a disability which may result in premium savings.
The Illinois Senior Health Insurance Program (SHIP) has created a useful resource called the Illinois Medicare Supplement Premium Comparison Guide that provides detailed and Illinois specific information about Medigap policies, including benefits, enrollment timelines, and premium estimates: https://ilaging.illinois.gov/ship/medicarerelatedinfo.html.
To learn more about the Medigap Open Enrollment Period, visit
https://www.medicare.gov/supplements-other-insurance/when-can-i-buy-medigap.
As always, if you have any questions, please do not hesitate to contact Avisery at avisery@ageoptions.org or call 708-628-3440.
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