Can my insurer cancel my Medicare (Medigap) supplement plan? Pt 1

Can my insurer cancel my Medicare (Medigap) supplement plan? Pt 1

In general, Medicare supplementary plans (also called Medigap) are guaranteed as renewable, which means that the insurance agency will not cancel the plan, except in some instances.

Medigap plans are provided by private insurance firms and can help pay the cost of living for Medicare Part A and B services. Medicare plans are not provided by the federal government or the Medicare program, but companies that sell Medigap plans must with some laws that regulate this type of insurance. One of the laws the protection of consumers is also known as the guaranteed issue right. If you purchased your health insurance plan in 1992 or later, your insurance company cannot cancel coverage, except in very limited circumstances.

Medigap plans in general cannot cancel your plan

Usually, the insurance firm that provides the Medigap plan cannot end your Medigap plan. However, in some situations, your plan may be canceled.

Exceptions to the renewal guarantee of supplemental Medicare plan

There are some circumstances in which an insurance company can terminate the supplemental Medicare plan.

  • You have provided misleading or incorrect information about your application for Medicare supplement plan. Sometimes a Medicare participant, in order to get coverage or get a reduced premium, fails to provide honest answers or hide medical information in response to specific questions about applying the Medicare supplement plan. If the insurance company discovers that it has provided inaccurate information during the application, it may terminate the Medicare supplement plan.

Therefore, before sending it to the insurance company, you can carefully review your answers to the application of the Medigap plan. If in doubt, records may need to be reviewed to confirm treatment dates or diagnosis. Ask the insurance company for clarification if you do not understand anything on request. Remember that if you request a Medicare support plan during the Medicare supplement’s open enrollment period, you cannot deny your right, charge a higher premium or provide coverage due to a health problem. For most people, this open enrollment period is the six month period starting at age 65 or older and listed in Part B of Medicare.

  • You do not pay the premium from the Medicare supplement plan.

If you do not pay the premium, the insurance company has the right to terminate the contract. Insurance companies may send a late notice to notify the user of any late payment and penalty  To avoid canceling the Medicare Supplement Plan due to non-payment of the premium, be sure to pay premiums on time. Get in touch with an insurance firm immediately if you get a notice of insolvency letting you know that you are making a payment or if you have problems or questions regarding payment.

  • The insurance company that provides the Medigap plan goes bankrupt or becomes insolvent. If the insurance company ends the 2020 Medicare Supplement Rates because the company declares bankruptcy or ends her operations, you might be insured by the guaranteed issue rights for some Medicare supplemental plans to other insurance companies that sell them in your locality.