Moving with a Supp?

[Winter_123]

My question here is about medicare supplement- ie, not medicare advantage.


Obviously states have different rating systems for med supp rates. Some might be community rated, others attained age, others attained age but increasing with age, whatever.

So how does it work when a person has a supp issued in one state but moves to another? I am talking about an actual change in residency, not just snowbirding or something. Is there some trigger event that requires a re-issue of their medicare supplement and they need to apply in the new state or they just carry on with the exisiting enrollment subject to the rate changes in their former state or what?

Could someone give me a couple pointers here as to how that plays out.

Thanks.

 

[G.Gordon]

Med Supps are gaurantee renewable so no one can cancel that contract other than the policy holder. That said, if they move they take that "contract" and all it's details with them. So no matter where they move it is still the same as the day it was issued.

 

[Winter_123]

Med Supps are gaurantee renewable so no one can cancel that contract other than the policy holder. That said, if they move they take that "contract" and all it's details with them. So no matter where they move it is still the same as the day it was issued.

I wonder how some of this could play out though, if there are no residency requirements. Suppose you live in an attained age state and say you are paying 300/ mo for a Plan F or whatever the rate would be for an 85 year old in one of those states. So you come to my state for vacation where that same plan would be 158 month based on a community rating system. Plus, you have guaranteed issue if you have not had a lapse in coverage of more than 90 days. So you let the other one lapse or pay both for a month and sign up a supp in this state and take that home with you.

Where am I going wrong here? What are the barriers to this.

 

[Justin Bilyj]

Winter you just figured out the loophole in the system lol i wonder what the cheapest plan D's and F's are?

 

[Todd King]

Winter,
They can continue with the med supp in the new state as long as that plan is available in the new state. There are many companies out there who are not in all 50 states. The person you are speaking of should do a little shopping for the state they are new to. If they can't qualify for a new company, then they should contact their present company to see if that plan is available in the new state and what the pricing is.

 

[Frank Stastny]

I wonder how some of this could play out though, if there are no residency requirements. Suppose you live in an attained age state and say you are paying 300/ mo for a Plan F or whatever the rate would be for an 85 year old in one of those states. So you come to my state for vacation where that same plan would be 158 month based on a community rating system. Plus, you have guaranteed issue if you have not had a lapse in coverage of more than 90 days. So you let the other one lapse or pay both for a month and sign up a supp in this state and take that home with you.

Where am I going wrong here? What are the barriers to this.

You are not able to do that because they must take a policy in the state in which they reside. If they live in say Missouri and have a Missouri Med Supp and move to Florida, they can keep their Missouri Med Supp after establishing residency in Florida. However, they cannot go to Florida on vacation and purchase a policy there and "take it home with them".

They can't take a policy while vacationing in another state. There is only one company that I know of that will allow a, say, Missouri policy to be written on people who live out of state but they must be "standing on Missouri soil" when the app is written.

United American use to allow that. Don't know if they still do or not.

 

[G.Gordon]

Winter,
They can continue with the med supp in the new state as long as that plan is available in the new state. There are many companies out there who are not in all 50 states. The person you are speaking of should do a little shopping for the state they are new to. If they can't qualify for a new company, then they should contact their present company to see if that plan is available in the new state and what the pricing is.

Incorrect sir. Say one of my Missouri clients with Christian Fidelity moves to a state that Christian Fidelity does not do business in. They can keep the CF medicare supplement as long as they wish. All Christian Fidelity is doing is paying claims so where you live after it is issued is not an issue.

Real life case. I had a Missouri resident insured by Royal Neighbors move to Kansas. We changed her address with the company and she kept her RNA med supp. No changes or re-issues, etc. At the time RNA did not do business in Kansas at all. Actuall it was about two years later that they finally moved into KS.

 

[Frank Stastny]

Incorrect sir. Say one of my Missouri clients with Christian Fidelity moves to a state that Christian Fidelity does not do business in. They can keep the CF medicare supplement as long as they wish. All Christian Fidelity is doing is paying claims so where you live after it is issued is not an issue.

Real life case. I had a Missouri resident insured by Royal Neighbors move to Kansas. We changed her address with the company and she kept her RNA med supp. No changes or re-issues, etc. At the time RNA did not do business in Kansas at all. Actuall it was about two years later that they finally moved into KS.

What G.Gordon said.

I have had lots of clients move out of Missouri and still have a Missouri Med Supp. The only reason they would consider changing to a company doing business in their new state is if the rates are substantially less expensive.

 

[Todd King]

Incorrect sir. Say one of my Missouri clients with Christian Fidelity moves to a state that Christian Fidelity does not do business in. They can keep the CF medicare supplement as long as they wish. All Christian Fidelity is doing is paying claims so where you live after it is issued is not an issue.

Real life case. I had a Missouri resident insured by Royal Neighbors move to Kansas. We changed her address with the company and she kept her RNA med supp. No changes or re-issues, etc. At the time RNA did not do business in Kansas at all. Actuall it was about two years later that they finally moved into KS.

Ok, my experience has been a little different than that, but if that's the way it is, I stand corrected. Thanks for corrected my error.

 

[Winter_123]

What G.Gordon said.

I have had lots of clients move out of Missouri and still have a Missouri Med Supp. The only reason they would consider changing to a company doing business in their new state is if the rates are substantially less expensive.

I wonder how that works if a consumer has a complaint against the carrier. They complain to the DOI but the carrier is not even licensed to do business in the state and servicing a policy or settling a disputed claim is doing business.