Medicare Supplement insurance fills in the gaps of Original Medicare by supplementing costs, extending hospitalization, and some plans even offer foreign emergency care which can save you thousands each year. Before you enroll in a plan you’ll want to watch out for these 10 illegal Medigap (Medicare Supplement) practices.
10 Illegal Medigap Practices
The following is from the CMS website describing 10 situations in which a federal law has been broken by a person attempting to sell you a Medigap policy:
- 1) Pressure you into purchasing a Medicare Supplement policy, or attempt to lie/mislead you into switching from one company/policy to another.
- 2) Sell you a second Medigap policy when they know that you already have one*.
- 3) Sell you a Medigap policy if they know you have Medicaid*.
- 4) Sell you a Medigap policy if they know you’re in a Medicare Advantage Plan*.
- 5) Claim that a Medigap policy is part of the Medicare program or any other federal program.
- 6) Claim that a Medicare Advantage Plan is a Medigap policy.
- 7) Sell you a Medigap policy that can’t legally be sold in your state.
- 8) Misuse the names, letters, or symbols of the U.S. Department of Health & Human Services (HHS), Social Security, Centers for Medicare & Medicaid Services (CMS), or any of their various programs like Medicare. For example, they can’t suggest the Medigap policy has been approved or recommended by the federal government.
- 9) Claim to be a Medicare representative but actually sell insurance.
- 10) Sell you a Medicare Advantage Plan when you say you want to stay in Original Medicare and buy a Medigap policy.
*Under certain circumstances these items might be legal -such as you are cancelling your original Medigap or MA plan, and have submitted something in writing to the new insurance broker or agent.
Choosing a Reputable Medigap Policy
Besides choosing the right insurance provider for your Medigap plan you’ll want to work with a reputable agency. If the agent does any of the above you should not work with them.
If you have further questions about Medigap call the number above.