In 2016, the Michigan Health Endowment Fund (MHEF) began offering a subsidy for Medigap plans as part of changes to Michigan’s rules regarding Medigap. The Michigan Medigap Subsidy has limited funding and is scheduled to end in early 2023. There are approximately 21,000 people enrolled in the Michigan Medigap Subsidy, which subsidized Medigap plans $35-$110 per month, depending on age range. Medigap – Michigan Health Endowment Fund (mihealthfund.org)
Those impacted will be notified by their Medigap insurance carrier. People can stay in their Medigap plan, but their premium will increase by the subsidized amount.
The ending of the Michigan Medigap Subsidy will likely occur outside of any typical Medicare enrollment periods. It will not qualify a person for a Special Enrollment Period for Medicare Advantage, nor will it qualify a person for a Guaranteed Issue Period for Medigap. If a person wishes to switch Medigap plans, they may do so but would be subject to medical underwriting, which allows Medigap plans to raise prices or deny enrollment based on medical conditions. Most recipients of the Michigan Medigap Subsidy will likely not be able to change plans until next Medicare Open Enrollment Period, which is October 15, 2023 through December 7, 2023.
MMAP recommends using the current Medicare Open Enrollment Period to review plan options. The Medicare Open Enrollment Period lasts from October 15 through December 7. Any changes made during this time would become effective January 1. At this time, impacted individuals should:
- Assess the affordability of your plan without the subsidy
- Review Medicare health and drug plan options to see if another plan meets your needs and budget
To download a factsheet:Medigap Subsidy Ending (125 downloads)