What happens if your Medigap Insurance policy (G) goes bankrupt or insolvent?

[VivianR375175]

Can you then pick another plan G or are you subject to existing conditions, etc.? We have pretty much decided on Original medicare with plan G and a drug plan D. (Even though we have no health problems at present). 

[GailL1]

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@VivianR375175 wrote:

Can you then pick another plan G or are you subject to existing conditions, etc.? We have pretty much decided on Original medicare with plan G and a drug plan D. (Even though we have no health problems at present). 

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Are you asking because this has happened to you or are you just doing some potential planning?

You do not buy Medicare coverage of any sort as "WE" - They are ALL individual-type plans and this makes it better so that each can plan for their own health coverage based on their specifics.

This answers your heading question but as far as Medigap coverage goes - various state laws may also give some other protections.

From Medicare.gov -

Your Medigap insurance company goes bankrupt and you lose your coverage, or your Medigap policy cove...

You have the right to buy

Medigap Plan A, B, C, F, K, or L that’s sold by any insurance company in your state

You can/must apply for a Medigap policy

no later than 63 calendar days from the date your coverage ends.

This is covered under Medicare.gov - Guaranteed Issue Rights or Medigap Protections -

Guaranteed issue rights (also called "Medigap protections") are rights you have in certain situations when insurance companies must offer you certain Medigap policies. In these situations, an insurance company:

• Must sell you a Medigap policy
• Must cover all your pre-existing health conditions
• Can't charge you more for a Medigap policy because of past or present health problems

Read more at the links above -

I do not think they have added to the list of these Medigap plans offered in your situation (see above) but I guess you can always ask them but there is a time limit (see above).

[VivianR375175]

I read this article but it does list plan F (which I can't even get in 2020) and DOESN'T list G which I will be taking.  The "WE" is my husband and I who will both be taking the same plans at the same time this summer. We do plan to take the same plan as we are both healthy but know as we age we will need good coverage. Maybe the above article is just outdated and the same will apply for plan G if it goes bankrupt or insolvent with a particular company? We have a friend who has had MULTIPLE surgeries, drugs, a stroke, etc. even rehab in a nursing home twice for extended periods and never paid a dime. She is advocating her insurance company and we are very tempted to go with them but it is a lesser-known company (to us, anyway). We worry about it's longivity?

[somarco]

In most states, "G" has been a better value than F for some time. Only difference in F and G is the G plan does not pay your Part B deductible ($198 in 2020).

As @GailL1  the HDF is available for those who were Medicare eligible prior to 1/1/2020. Others can get the HDG, slightly lower premium than HDF and slightly higher OOP but still a good value to those on a budget. 

2020 HDF deductible is $2340 vs HDG @ $2340 + $198.

Nothing wrong with smaller carriers as long as they have been in the Medigap market for at least 5 years UNDER THE SAME NAME.

Many household name carriers have downstream subs that enter and leave the market every 3 years or so. You can get hung out to dry when they pull out of a state.

I have my HDF with Bankers Fidelity . . . over 30 years in the Medicare market. Premium increased $1 this year.

HD plans have lower OOP vs MA plans plus the flexibility of using any provider in the US. No networks. No referrals. Primary coverage still with Medicare.

[GailL1]

@VivianR375175 

Thinking about longivity, also consider the premium growth from year to year. 

Remember based on the rating method of the Medigap plan insurer, the healthcare inflation rate and pool of beneficiaries,  your premiums will escalate through the years. 

Medicare.gov - Cost of Medigap policies

Your state law as to how easy, how hard or even if you can change Medigap plans is also something to consider if premiums begin to escalate too much.

The Plan F - High Deductible -  is still available.  Compare the coverage and the current premium of this plan to the others because in the long run (over your lifetime) if you can afford the (at the most) $ 2300 per year deductible and most likely not all at the same time - it is a good value. 

Plan G is also fine - don't worry about the insurer leaving the market for some reason, you would have guaranteed issue right in that situation and any of the others covered under the Medigap Guaranteed Issue Rights.