Guaranteed Issue

[UrlMan]

Can someone please address the question of “Guaranteed Issue” of Medigap policies with reference to the Resource Guide “Navigating Medicare” published by the LRO? Under “Medigap Insurability Rights” (page 10), Situation #2, Medigap Plan I and J are not included and it does not address the possibility of a waiting period. Under “Items to Consider” (page 15) it infers that all Medigap policies A - L (including I & J) are available without restrictions to Medicare eligible retirees leaving the Traditional Indemnity Plan. These seem to be in conflict with each other.

I’m concerned about a possible 6 month waiting period being imposed. Is there one or not? Also, are Plans I & J available without restrictions?

[MAXIE212]

Hi Urlman,
Guaranteed issue is the period in which company sell you the policy at best price according to your age. You can usually apply for a guaranteed-issued Medigap policy as early as 60 days before your current benefits end to avoid a gap in coverage. Guaranteed-issue periods are generally shorter than open enrollment periods.You have the right to purchase certain Medigap plans when your employer-sponsored retiree plan that is supplementing Medicare involuntarily terminates.This federal right does not apply if the terminating health plan provided primary benefits.
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Medigap plans

[lucentretirees]

Guaranteed issue essentially means that a policy is written without underwriting - either at a higher cost or with a waiting period for certain exclusions. Medicare has reissued it's Medigap manual for 2010 and a copy is available at
http://www.lucentretirees.com/BenefitsTeam/docs/cms-medigap-2010-02110.pdf

It describes the basis for guaranteed issue on page 23. If you already have Alcatel-Lucent coverage, call them and ask for a determination as to whether cancelling that coverage provides guaranteed issue.