Chevron retiree Medigap question

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randompacking
Posts: 30
Joined: Sun Jan 17, 2010 5:50 pm

Chevron retiree Medigap question

Post by randompacking » Fri Nov 24, 2017 12:52 pm

I know a CVX retiree who asked me the following question.

Last year, CVX switched from a simple retiree group insurance system to a marketplace-type system for their Medigap (Medicare Supplement) insurance. This person signed up for a Blue Cross Blue Shield Medigap policy (Plan F, I think) for 2017.

Question: Does this person have to do something (ie, make an open enrollment selection) for his Medigap policy for 2018 to continue coverage? Or, if he does nothing, will he continue to be enrolled in his current Medigap plan?

Thanks.

neilpilot
Posts: 1084
Joined: Fri Dec 04, 2015 1:46 pm
Location: Memphis area

Re: Chevron retiree Medigap question

Post by neilpilot » Fri Nov 24, 2017 12:56 pm

As I understand it, Medigap policies are not part of the annual open enrollment the same way Part D policies are. So do nothing.

But even regarding Part D, unless your particularly policy is no longer offered, if you don't want to change you can also skip the enrollment. Your existing policy will renew if you do nothing.

randompacking
Posts: 30
Joined: Sun Jan 17, 2010 5:50 pm

Re: Chevron retiree Medigap question

Post by randompacking » Fri Nov 24, 2017 1:31 pm

thank you so much for the reply.

is this the case with all medigap policies (ie, not limited CVX)?

clemrick
Posts: 35
Joined: Wed Sep 09, 2009 8:46 pm

Re: Chevron retiree Medigap question

Post by clemrick » Fri Nov 24, 2017 3:44 pm

He can change the insurance company for his medigap plan in the anniversary month of when he started, and a month before or a month after. If he doesn't make a change, and the insurance company continues to offer the plan, then the coverage continues. We are still in the enrollment period for Part D and everyone with Part D should look to see if there is another plan that covers their drugs, uses their preferred pharmacy, and is cheaper.

whyamihere
Posts: 4
Joined: Sun Oct 22, 2017 4:55 pm

Re: Chevron retiree Medigap question

Post by whyamihere » Fri Nov 24, 2017 4:32 pm

randompacking wrote:
Fri Nov 24, 2017 12:52 pm
I know a CVX retiree who asked me the following question.

Last year, CVX switched from a simple retiree group insurance system to a marketplace-type system for their Medigap (Medicare Supplement) insurance. This person signed up for a Blue Cross Blue Shield Medigap policy (Plan F, I think) for 2017.

Question: Does this person have to do something (ie, make an open enrollment selection) for his Medigap policy for 2018 to continue coverage? Or, if he does nothing, will he continue to be enrolled in his current Medigap plan?

Thanks.
The medigap policies, aka Medicare supplement, rely on Original Medicare and there is no annual enrollment period like Part D (Rx coverage) and Part C (Medicare Advantage). If you friend keeps paying the premium their coverage will be renewed.

Medigap policies are standardized and Plan F at any company offers the same coverage, but they DO NOT charge the same price for the same coverage from company to company.

Your friend could enroll in any Plan F, anytime in the year, if he is able to pass a company's underwriting. BlueCross may be more expensive than other companies despite identical coverage. Healthy policyholders tend to switch every few years if they are smart.

Plan G can offer a lower annual cost than Plan F; the deductible for Part B isn't covered but is less than the difference in price between Plan F and Plan G in most markets.

Some states require that policyholders have a guaranteed right to change policies in their birthday month, California for example. This is not true in all states.

Independent insurance brokers can use CSG Actuarial to compare companies that offer Medigap plans and Advantage. There are considerable savings available if you find a broker who you can trust that represents multiple companies. Unfortunately your friend may be restricted if CVX is contributing to the payment of his premium. Many companies outsource the retiree care to benefit agencies that offer only a few supplement carriers, despite it being bad for the retiree.
--------------------------------------------------------- | caveat lector

dbr
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Joined: Sun Mar 04, 2007 9:50 am

Re: Chevron retiree Medigap question

Post by dbr » Sat Nov 25, 2017 10:03 am

You say this is a retiree insurance plan. As far as I know the statements about Medigap plans are correct but that does not mean CVX does not want or is not offering some process that needs to be confirmed on an annual basis. CVX is paying for the plan, right? I would check for documentation or any notices from your employer and/or call them up and ask them. It would be highly likely they keep you in the same plan.

randompacking
Posts: 30
Joined: Sun Jan 17, 2010 5:50 pm

Re: Chevron retiree Medigap question

Post by randompacking » Sat Nov 25, 2017 10:42 am

Thanks, all, so much for your time and wisdom. This has cleared things up for me.

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