Consumer Protections

Medigap insurance is regulated by Wisconsin state and federal law. It must be clearly identified as Medicare supplement insurance. Insurance companies are not allowed to change the combination of benefits.

All Medicare supplement and Medicare select insurance policies sold in Wisconsin have a 30-day free look period. If you are at all dissatisfied with a policy, you may return it to the company within 30 days and get a full refund if no claims have been made. You should use the time to make sure the policy offers the benefits you expected. Check the application for accuracy and check the policy for any limitations, exclusions, or waiting periods.

All Medicare supplement and Medicare select insurance policies sold today must be guaranteed renewable for life. This means that you can keep the policy as long as you pay the premium. It does not mean that the insurance company cannot raise the premium.

You do not need more than one Medigap policy. State law prohibits an insurance company or salesperson from selling you a second Medigap policy that duplicates the coverage of one you already have, unless you plan to discontinue your current policy.

You can switch Medigap policies whenever you need a different level of benefits. When your health needs are greater, you can buy a plan that better fits your needs. The new policy will replace the previous one. You may need to qualify for the new policy if it is not guaranteed issue. (You must sign a statement saying that you intend to replace your current policy and will not keep both policies.) Therefore, do not cancel an existing policy until the new one is in force. The law also requires insurance companies to issue a pro rata refund of premium if you want to cancel a policy before the end of a term. This law applies to policies after August 1, 1991. All you need to do is to send the policy to the company with a letter requesting cancellation. The company is required to send you a pro rata refund of premium.