What Is the Medigap Free Look Period?

What Is the Medicare Supplement Free Look Period?

The Medicare Supplement free look period is a 30-day trial period in which Medicare beneficiaries who have purchased a Medigap plan can try out their policy and determine if they want to keep it or cancel it for a full refund.

People with Original Medicare can purchase Medigap insurance from a private company to supplement their primary plan and pay for qualifying out-of-pocket health expenses, such as copays. You might switch from one Medigap plan to another if your budget or benefit needs change. In this case, you can use the free look period to try out a new plan before deciding to cancel your old one.

Start by applying for a new Medigap policy from either your current provider or a different one. If you’re deemed eligible for the new policy, you can use the Medicare Supplement policy free look period to try it out for 30 days without giving up your original plan. You will have to pay both plan premiums during this period.

How Common Is Switching Medigap Plans?

Nearly one-quarter of Medicare’s beneficiaries enroll in a Medigap plan. Most Medigap users enroll in Plan G, which has a high deductible but a lower price point. Between 2021 and 2022, however, Plan N — another low-cost option — gained some traction among new Medigap enrollees, while Plan G lost some traction.

You may decide to switch Medigap plans if you find yourself paying for unnecessary benefits. Other common reasons include:

• Needing additional benefits
• Choosing to change insurance providers
• Wanting to save money with a cheaper policy

Keep in mind that while you can change Medigap policies at any time, you may have to go through medical underwriting — where an insurance company evaluates your health status — to do so. You can only get out of medical underwriting if you live in a state that does not require it or you’re in a Medicare Supplement guaranteed issue period.

How Does the Medicare Supplement Free Look Period Work?

If you have Medigap and have been accepted to a new Medicare Supplement plan, avoid canceling your original plan right away. The Medigap free look period allows you to try out the new plan before cutting ties with your old one.

Who Is Eligible For the Free Look Period?

Anyone with Medigap who has applied and been approved for another Medicare Supplement plan qualifies for the free look period. The new Medigap plan must be accepting new enrollees; for example, Plans F and C are no longer available to people who turned 65 after Jan. 1, 2020.

Your Medigap open enrollment period (OEP) lasts for six months after you turn 65 and enroll in Medicare Part B. During your OEP, you may have a waiting period for up to 6 months before your Medigap policy will cover your pre-existing condition; this time is known as the pre-existing condition waiting period. 

What Can You Do During the Free-Look Period? 

During your free-look period, you have access to the benefits offered by both policies until you decide to cancel one of them. This allows you to compare both plans in a real-life scenario to ensure you’re happy with the new plan before committing to it for the future.

For example, you may have started with a Medigap Plan A but decided that you’re going to start traveling overseas. Medigap Plan N covers the same benefits as Plan A but offers coverage for 80% of foreign travel health expenses. This additional benefit may trigger you to consider making a change. 

If you want to try out Plan N but aren’t sure the change is right for you, the Medicare Supplement free-look period allows you to try it out for up to 30 days without losing your current coverage. When the 30 days are up, you must cancel one of the policies.

Why Should You Consider Changing Medigap Plans?  

If your life circumstances change, you may find that the Medigap policy you currently have no longer meets your needs or that a different policy may be a better fit.

For example, you may find that you’re paying for benefits you don’t need with your current plan. You may also change plans because you want a policy that costs less or you want more benefits. Sometimes, people switch plans because they want coverage with a different insurance company.

Depending on when you become eligible for Medicare and where you live, you may have access to 10 different Medigap plans. Each plan may have different premiums and different coverage. Depending on your needs, you may look for a plan that covers skilled nursing facility care coinsurance, foreign travel, Part A deductibles, or other relevant costs. Some plans also offer annual out-of-pocket limits. If you have changes to your health, lifestyle, or other circumstances, it may trigger you to consider changing your Medigap plan. 

Does the Free Look Period Apply to Medigap Only?

Yes, the free look period is only for Medicare Supplement plans, but Medicare Advantage also offers a trial right period.

Medicare Advantage plans give new enrollees one year to decide whether they want to commit to Medicare Advantage long-term. If a beneficiary decides within that period not to pursue Medicare Advantage, they can switch back to Original Medicare and purchase a Medigap plan without medical underwriting. This change can only occur during a special enrollment period, which you may qualify for during the 12-month trial. Ask your provider for more details. 

Those who previously had Medigap only have enrollment protections if they return to their old policy.

Your Medigap Plan Options

Medicare Supplement policies are required to follow both state and federal laws. Medigap policies are standardized and identified by a letter in many states. However, Wisconsin, Minnesota, and Massachusetts standardize and identify Medigap policies differently. Insurance companies can decide which policies they want to sell. However, if a company offers any Medigap policy, it must offer plan A. State laws may also limit which policies a company can sell.

While each policy offers the same essential benefits, some offer additional benefits and some cover costs at a different percentage rate. For example, Plans A and B do not cover skilled nursing facility care coinsurance or foreign travel exchange. Plans K and L offer a lower percentage of coverage for several types of expenses but have an annual out-of-pocket maximum.

When looking for a new Medigap plan or considering switching plans, it’s essential to understand the similarities and differences in the coverage offered by each policy option. The table below shows the key features and differences for each plan.

Benefits	Plan A	Plan B	Plan C	Plan D	Plan F	Plan G	Plan K	Plan L	Plan M	Plan N
Part A coinsurance and hospital costs for up to 365 additional days after Medicare benefits are disbursed	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Part B coinsurance or copayment	Yes	Yes	Yes	Yes	Yes	Yes	50%	75%	Yes	100% coinsurance; but copays may still apply
Part A hospice care coinsurance or copayment	Yes	Yes	Yes	Yes	Yes	Yes	50%	75%	Yes	Yes
Part A deductible	Not covered	Yes	Yes	Yes	Yes	Yes	50%	75%	50%	​Yes
Part B deductible	Not covered	Not covered	Yes	Not covered	Yes	Not covered	Not covered	Not covered	Not covered	Not covered
Part B excess charge	Not covered	Not covered	Not covered	Not covered	Yes	100%	Not covered	Not covered	Not covered	Not covered
Out-of-pocket limit	N/A	N/A	N/A	N/A	N/A	N/A	$6,940 in 2023	$3,470 in 2023	N/A	N/A
Blood (first three pints)	Yes	Yes	Yes	Yes	Yes	Yes	50%	75%	Yes	Yes
Skilled nursing facility care coinsurance	Not covered	Not covered	Yes	Yes	Yes	Yes	50%	75%	Yes	Yes
Foreign travel exchange up to plan limits	Not covered	Not covered	80%	80%	80%	80%	Not covered	Not covered	80%	80%

What Should You Look For In Another Medicare Supplement Plan?

Medicare Supplement beneficiaries often decide to change plans due to the following reasons:

• They are paying for benefits they do not need.
• They need benefits their current plan does not provide.
• They plan to switch insurance companies.
• They want a less expensive Medigap plan.

First and foremost, it’s important to pick a Medigap plan that offers all the benefits you need. For example, not all plans pay for Original Medicare deductibles or expenses incurred when you stay in a skilled nursing facility. Likewise, some plans cover only half of your expenses until you reach a yearly out-of-pocket spending limit.

Compare and contrast Medicare Supplement plans, choosing one that makes sense for your budget and healthcare needs.

When Can You Participate in the Free Look Period?  

During specific periods, Medicare-eligible individuals have what’s known as Guaranteed Issue Rights for Medigap Protection. During this time, insurance companies must offer to sell you a Medigap policy. They must also cover your pre-existing conditions and cannot charge you more for your policy due to your health history.

Typically, the guaranteed-issue period begins when other healthcare coverage you have in place changes in some way. For example, this may occur if your current Medicare Advantage plan is no longer servicing your area, you move out of a service area, or if you have Original Medicare and your employer group coverage is being terminated.

Suppose you are within the guaranteed-issue period, within your 6-month Medigap open enrollment period, or you’re eligible under other specific circumstances. In that case, you can switch plans and take advantage of the free-look period.

You may also be able to switch plans outside of these periods. However, in this case, acceptance into the program is not guaranteed. You may need to undergo medical underwriting process, and your application may be denied. If accepted, the free-look period for Medicare Supplement policies still applies. 

How Much Does It Cost To Switch Medicare Supplement Plans?

While switching Medigap plans does not incur costs in and of itself, you will have to pay two premiums for a month if you take advantage of the Medigap free look period. Monthly premiums for Medigap plans vary widely, ranging from around $40 to $300 or more. So, paying overlapping premiums may get expensive depending on many factors, including:

• Location
• Age
• Smoker status
• Plan choice

Guaranteed Issue Rights

Some providers charge higher premiums for people who enroll outside of their OEP and who do not have a guaranteed issue right, in which case your new plan’s application may have to go through medical underwriting. 

Guaranteed issue rights, also known as Medigap protections, refers to situations in which insurance companies must sell you a policy and cover any pre-existing health conditions without charging you more due to your health status or history.

Guaranteed issue rights come into effect in specific circumstances, including:

• You’ve lost Medicare Advantage coverage because your plan stops servicing your area or leaves Medicare.
• A health plan sponsored by your employer or union pays for your Original Medicare, and that health plan is ending.
• Your current Medigap policy coverage is ending through no fault of your own.
• You’ve left a Medicare Advantage or Medigap plan because the provider misled you or did not follow regulations.

Note that many states have expanded guaranteed issue rights, so you may have even more flexibility depending on the regulations where you live.

Should You Switch Medigap Plans?

Even if your current Medigap plan was once a great fit for you, your health needs and finances may evolve with time. It’s easiest to switch plans if you do so within your OEP or when you have a guaranteed issue right because you may not have to undergo medical underwriting during these periods. 

If you switch plans outside of your OEP or guaranteed issue period, the process may be trickier and more expensive.

Advantages

• Lower premiums: You may pay a lower monthly fee with a different plan.
• Better aligned benefits: Your new plan may offer the benefits you need, and you can avoid paying for benefits that are not relevant to you. 
• New insurer: You can switch to an insurance company you like.
• 30-day trial: With the free look period, you can sample a new plan without committing to it.
• Seamless change: You can make an easy switch during your OEP or a guaranteed issue period since insurance companies cannot reject you or charge you more based on your health status or history during these times.

Disadvantages

• Two premiums for 30 days: You must pay for two plan premiums during the free look period.
• Medical underwriting: If you do not have a guaranteed issue right, your Medigap application may undergo medical underwriting, meaning you could be rejected based on your health status or history.
• Higher premiums without a guaranteed issue: Some insurance companies charge more for Medigap if you enroll without a guaranteed issue.
• Potentially non-reversible: If you commit to a new plan and drop your old one, you may not be able to return to your old policy should you change your mind.
• New deductible to meet: If you switch to a high-deductible Medigap plan, your plan’s coverage will not kick in until you’ve spent thousands of dollars out of pocket.

How To Switch Medicare Supplement Plans Using the Free Look Period

To switch Medigap plans, you must choose a new policy and cancel your old one. This process involves research, comparison shopping, and a 30-day trial of your new plan.

1. Research and Enroll

If your current Medicare Supplement plan is no longer meeting your needs or within your budget, you may want to switch. Medigap plans are standardized, meaning insurance companies in most U.S. states offer the same types of Medicare Supplement coverage. 

Use the following tips for optimal research:

• Use the Medigap plan comparison chart. Medicare.gov provides a chart that allows you to easily compare benefits among standardized Medigap plans A through N. 
• Call different insurance companies to get quotes and compare rates. Though Medigap coverages are largely standardized, pricing is not. 
• Read reviews. Gather opinions on the insurance companies that interest you.

Once you’ve chosen a new plan and policy, it’s time to apply. In your application, you must agree to cancel your first policy should you choose to stick with the new one after the free look period.

Unless you have applied to a new Medigap plan during your OEP or when you have a guaranteed issue right, your application may undergo medical underwriting and could be rejected based on your health history. If you are approved for the new plan, however, you can then opt for the free look period.

2. Review and Compare

Refrain from canceling your old Medigap policy until you have decided to keep the new one. In the meantime, use the 30-day free look period to compare and contrast both plans. Consider why you decided to switch, and use these reasons to evaluate whether your new policy meets your needs more effectively than your old one.

For example, say your old policy provided sufficient coverage, but you did not like the insurance company because:

• They practiced poor customer service
• They were difficult to get in touch with
• They were not transparent with you about the details of your coverage

In this case, use your free look period to determine whether your new insurance company would offer better customer service, communication, and transparency.

3. Notify the Insurer

With the exception of the 30-day free look period for Medicare Supplement policies, you may not hold two Medigap policies at the same time, so you have to choose one. If your free look period is a success and you decide to keep your new policy, you must cancel your old one. 

Different companies have different methods of canceling policies. Yours might ask you to submit a disenrollment form or a formal letter of termination. Depending on when you cancel your policy during your premium payment schedule, your provider may reimburse you for any unused payment.

Remember that once you drop a Medigap policy, you may not be able to reinstate it later on, so make this decision carefully. If you are switching Medigap plans because you are losing your current coverage for a reason that would provide you guaranteed issue, do not drop your current policy. Doing so may invalidate your guaranteed issue right.

4. Receive and Retain Proof of Cancellation

If you are switching Medigap plans because you’ve lost coverage for a reason that provides you a guaranteed issue right, make sure to keep proof of termination from your previous policy. This applies if you:

• Moved outside of your previous Medigap plan’s service area
• Lost coverage because your previous plan stopped servicing your area
• Lost coverage due to no fault of your own

Hang on to any claim denials, notices, letters, and emails that prove the termination of your previous Medicare Supplement policy. You may need to include these materials in your application for a new Medigap plan to demonstrate your guaranteed right so you can skip medical underwriting.

What If You Want to Keep Your Original Plan?

If you decide during your free look period that you prefer your original Medigap plan, simply cancel the new policy. Notify the insurance company offering the policy that you want to cancel it. Do so both in writing and by phone. From there, follow the steps laid out for you by the insurer to cancel your trial Medigap policy. You might have to fill out a form or send a letter to make the termination official.

Make sure to cancel the new policy before the 30-day free look period ends. Since your original policy remains active until you cancel it, you should not need to take any additional steps to keep it.

What the Free Look Period Means For You

Changing Medicare Supplement plans is no simple task, but it may be the right choice if your financial situation or coverage needs have changed since enrolling in your current policy. If you decide to take the leap and switch, the Medicare Supplement free look period allows you to try another Medigap plan for 30 days before canceling your old policy and committing to the new one long-term.

If possible, try to switch Medigap plans during your Open Enrollment Period or when you have a guaranteed right. Otherwise, insurance companies can decide whether to reject you and how much to charge you based on your health status and history.