Can My Insurance Company Cancel My Medicare Supplement Insurance Plan?
When can my Medicare Supplement insurance plan be canceled?
Medicare Supplement insurance plans are sold by private companies to cover health care out-of-pocket costs that Medicare Part A and Part B do not pay, such as deductibles, copayments and coinsurance. All Medicare Supplement (Medigap) insurance plans issued since 1992 are guaranteed renewable. This means that there are only certain conditions under which your insurance company can cancel your Medicare Supplement insurance plan, such as:
- You stop paying your Medicare Supplement insurance plan premiums.
- You provided false information on the policy application.
- The insurance company becomes bankrupt or insolvent.
Your insurance company cannot drop you for developing a health problem.
If your insurer goes bankrupt or becomes insolvent, you are protected by a guaranteed-issue right and can enroll in another company’s Medicare Supplement insurance plan without being subject to medical underwriting.
If you bought your policy before 1992, there is a possibility that the insurance company can refuse to renew the policy as long as it gets the state’s approval. If your policy is canceled, you have the guaranteed-issue right to buy another Medicare Supplement insurance plan without being subject to medical underwriting.
Will moving cancel my Medicare Supplement insurance plan?
Moving to another state will not cancel your Medigap policy. In general, if you have Original Medicare (Part A and Part B) you can keep your current Medigap policy regardless of where you live. However:
- Not every standardized Medicare Supplement insurance plan is available throughout every state.
- Wisconsin, Minnesota, and Massachusetts have their own standardized Medicare Supplement insurance plans.
- Your premium might be different in your new location.
What if I want to switch my Medicare Supplement insurance plan?
You may wish to switch Medicare Supplement insurance plans to pay a lower premium or get different coverage. If you’re outside your 6-month Medigap Open Enrollment Period and don’t have guaranteed-issue rights, you may not be able to switch, or you may have to answer medical questions and be charged a higher premium. If you find an insurance company willing to sell you a policy, don’t cancel your first policy until you are sure that you want keep the new policy. The first 30 days of the new policy is the period where you can decide if you want to keep the new policy. During this period, you’ll need to pay the premium for both policies. Beyond this 30-day period, you can’t have more than one Medicare Supplement insurance plan.
Keep in mind that a Medicare Supplement insurance plan only works with Medicare. You can’t use these plans to pay for Medicare Advantage costs. If you switch from Medicare Part A and Part B to Medicare Advantage, you won’t be able to use your Medicare Supplement insurance plan to pay for any deductibles, copayments or coinsurance associated with the Medicare Advantage plan.
- If you wish to cancel your Medicare Supplement insurance plan, contact your insurance company.
- If you wish to apply outside of your open enrollment period or guaranteed-issue right, remember that you may be denied coverage or charged a higher premium based on your health condition.
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