The Birthday Rule: A Gift to Those Eligible
The Medicare Supplement, also known as a Medigap Plan, Birthday Rule is gaining traction nationwide. At this time, nine states have already adopted this opportunity. The lucky nine states are California, Idaho, Illinois, Kentucky, Louisiana, Maryland, Nevada, Oklahoma, and Oregon.
What is this Birthday Rule, you ask? The Birthday Rule allows existing Medicare Supplement policyholders to switch from one Medicare Supplement plan to another without any medical underwriting around their birth month.
In these nine states, there are now two Guarantee Issue enrollment opportunities other than any Special Enrollment a beneficiary may have. Medicare Supplement Open Enrollment is when a person first enrolls in Part A and B and is at least 65. Now, they have the opportunity to enroll using the Birthday Rule.
Each of the nine states has some qualifiers to make the change without underwriting, such as:
- Length of time that the enrollment period is open to make the switch – those in effect have dates running from 31 to 93 days
- Age Eligibility – some states specify an age limit to make the switch
- Type of Plan Switch – the states differ in the following ways:
a. The plan switch can only be with the carrier with which you already have your Medicare Supplement plan.
b. Plan switch can be with any carrier offered in that state, but the plan needs equal or lesser benefits.
The advantage for the states that have adopted the Birthday Rule is that it gives the beneficiary and an agent more opportunities. For the beneficiary, it is possible to save money on premiums or increase their benefits when their healthcare needs change. For you as the agent, if you are licensed and selling in one of these nine states, it gives you another opportunity to reach out to your clients or prospective clients. Remember, there is no compliance issue with contacting a Medicare-eligible person when discussing Medicare Supplements.
If you are selling in any of these nine states, it is imperative to understand the qualifiers. At UIG, we work directly with the carriers to learn the specifics of each state. Contact us to obtain the specifics for your state.
