Why choosing a Medicare Supplement in California is different
Medicare beneficiaries in California are fortunate enough to live in one of the few states with a “Birthday Rule”, an important protection for those who buy a Medicare Supplement (Medigap) Plan.
Medical Underwriting in Other States
In most states, after your 6 month initial Medicare Supplement guaranteed acceptance period, you have to answer health questions (a.k.a. go through Medical underwriting) to move from one carrier’s Supplement Plan to another for lower rates. You can get stuck paying higher rates if your carrier raises your rates and you can’t pass medical underwriting
California's Birthday Rule
California is different from other states due to the California Birthday Rule for Medicare Supplements. This is a consumer protection for all Medicare Supplement policy holders in California that prevents you from being gouged by your Medicare Supplement carrier if your health won’t allow you to pass medical underwriting to get a new company or plan with lower rates. It allows you to switch Supplement Plans yearly without underwriting during a period beginning 30 days before your birthday and extending to 60 days after.
As a broker I use the California Birthday Rule all the time to lower clients’ and prospective clients’ cost for the same letter Medicare Supplement.
Since Medicare Supplement benefits of a letter (F, G, N, etc.) are “standardized” between carriers our clients can keep the same benefits and same choice of doctors but with lower monthly premiums. The California Birthday Rule is also a great tool if a client wants to reduce their premium cost by switching letters (F to G or G to N). In most states you would have to go through underwriting even to move to a plan with less coverage. Beneficiaries there can get trapped with no way to reduce premium costs, but in California clients are protected. Due to the California Birthday Rule I’m more likely to recommend a Plan G for a client over a Plan N, because I know I can always shop the rates around the Birthday Rule period and also look at a Plan N at the same time.
Based on my experience the rule keeps the carriers a little more honest, knowing they can’t raise their rates dramatically above the market because clients could switch every year without underwriting. It’s a great feeling knowing I can always keep my clients with the most competitively priced plans.
More California Perks
In California we also have other Medicare Supplement benefits that are less common in other states; Extra/Innovative plans and free gym benefits.
Several major carriers in California allow Medicare Supplement plan holders to buy plans with extra benefits like vision, hearing, or roadside assistance coverage.
We also have several of the most competitively priced Medicare Supplement plans, offering free gym benefits like SilverSneakers, Renew Active, or Silver&Fit. In many other states these extra benefits are reserved for Medicare “Advantage” (Part C) Plans.
California Dreamin'
When it comes to Medicare Supplements, consumers in California enjoy some really nice benefits not offered in other states. Something our clients will attest to.
