"May I acquire a Medicare Supplement on the Guaranteed Issue basis?" The response is "YES"!

Centers for Medicare & Medicaid Services (CMS) projects 636,000 Medicare Advantage subscribers are will be without coverage within 2010. Countless will return to Original Medicare and then expect to buy a traditional Medicare Supplement, and not buy another Medicare Advantage Policy and then face the chance of termination yet again. Medicare Advantage members can steer clear of all that disaster by buying a Medicare Supplement on a Guaranteed Issue basis.

Guaranteed Issue continuously applies in your client's ‘open enrollment period’, that lasts for six months and starts during the 1st day of the month during which a lead is both age 65 or older in addition to enrolled in Medicare Part B. During that time, applicants may buy any Medicare Supplement offered within their state with a Guaranteed Issue basis, it doesn't matter what his/her health history. This applies merely to the prospects' initial enrollment in Medicare Part B. If your prospect isn't longer on her or his initial enrollment period, he or she still may get a Guaranteed Issue Medicare Supplement if his/her health insurance position alters, like those 636,000 Seniors losing their Medicare Advantage plan, Guaranteed Issue is offered until Jan. 31, 2010. However, based on the circumstances, Guaranteed Issue rights can be baffling - for both customer and Agent.

According to a Centers for Medicare & Medicaid Services (CMS) graphic [1], the following helps to simplify when Guaranteed Issue rights concern to your applicants, what policies applicants may buy on the Guaranteed Issue basis, plus time frames. With each one of these situations, insurers must: sell applicants a Medicare Supplement, cover all pre-existing conditions, in addition to not charge higher premiums due to existing health conditions. (In New York, regular rules apply concerning replacements.)

Guaranteed Issue applies if the customer is in a Medicare Advantage policy that terminates, stops giving coverage in his or her district, or the customer moves out of the policy’s service area. If this is the case, the prospect can buy Medicare Supplement policy A, B, C, F, K, or L if offered by her/his state if she/he switch to original Medicare rather than go in with a new Medicare Advantage policy on Guaranteed Issue. The prospect can apply for the Medicare Supplement up to sixty calendar days prior to or sixty three calendar days later than the date health coverage terminates.

Guaranteed Issue applies if the client is with Original Medicare and an employer group health policy (including retiree or COBRA coverage) or union plan that pays when Medicare pays, except is ending. (State laws and regulations may vary.) If this is the situation, the customer can obtain Medicare Supplement policy A, B, C, F, K, or L if sold in the customers' state. (Those in COBRA may procure a Medicare Supplement instantaneously or wait until COBRA ends.) A prospect may apply no later than sixty three calendar days past the latest date from the following:

• Date insurance policy coverage ends

• Date on the announcement they receive concerning termination

• Date on a claim denial, if this is the only way she or he find out about coverage termination.

Guaranteed Issue applies if the client is in Original Medicare along with a Medicare SELECT policy (members must use a certain network to receive full coverage) as well as move out of the plan’s service area. In this scenario, the applicant may buy Medicare Supplement plan A, B, C, F, K, or L if sold in their state or the state to which they move. The customer has up to 60 calendar days ahead of or 63 calendar days after the time health coverage terminates to apply.

Guaranteed Issue applies if the client is in Medicare Advantage or PACE (Program of All Inclusive Care for the Elderly) when first eligible for Medicare Part A at age 65, and decide inside the first year to switch to Original Medicare. The client may purchase any Medicare Supplement that’s sold in their state. Then, the customer has up to 60 calendar days prior to or 63 calendar days after health coverage terminates to apply.

Guaranteed Issue applies if the client is dropping Medicare Supplement to join Medicare Advantage (or SELECT), have been in the policy fewer than a year and want to change back. The prospect may acquire the Med-Supp policy they had ahead of joining Medicare Advantage or SELECT, but without any prescription drug coverage. If that policy is no longer available, then any Medicare Supplement policy A, B, C, F, K, or L if sold in their state. The applicant then has up to 60 calendar days prior to or sixty three calendar days following the date health coverage terminates.

Guaranteed Issue applies if the applicant is with insurer that is bankrupt along with causes customer to lose coverage, or coverage ends through no fault of the prospect. Medicare Supplement policy A, B, C, F, K, or L can be ordered if sold in their state no later than 63 calendar days later than the date health coverage terminates.

Guaranteed Issue applies if the applicant is leaving Medicare Advantage or dropping Medicare Supplement because insurer is not following insurance regulations or is misleading the prospect. The prospect can acquire Medicare Supplement plan A, B, C, F, K, or L if offered in their state no later than 63 calendar days later than the date health coverage terminates.

[1] 2009, Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare