Can a Medicare Supplement Plan Be Canceled by the Insurer?

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A Medicare Supplement plan covers out-of-pocket costs like deductibles, coinsurance, and copayments. Also known as Medigap, these supplemental plans cover costs left out of your Medicare Part A and Part B. Some Medicare Supplemental plans are guaranteed renewable, meaning the insurance company cannot cancel your plan except for specific cases. Here are the top questions about Medicare Supplemental plans Texas residents and other insured U.S. residents are asking:

When Can an Insurance Company Cancel My Medicare Supplemental Plan?

Insurers have three primary scenarios under which they cancel your Medicare Supplement plan. The first is if you stop paying your insurance plan premiums. Second, insurers will cancel your plan if you provide false information during the policy application. The third scenario is if the insurance company goes bankrupt or insolvent. If the insurer becomes bankrupt or insolvent, your guaranteed issue rights allow you to enroll in another plan without medical underwriting.

Your insurance company can’t directly cancel your plan if you develop a health problem. Some insurers may refuse to renew older plans that were bought before a certain year. If the insurer wants to cancel your old policy, they would need the state’s approval before doing so. If your policy does get canceled, you are guaranteed the opportunity to buy another plan with a different company. You won’t be subject to any medical underwriting either, so you won’t be denied based on any new health concerns.

Can I Ask the Insurer To Cancel My Medicare Supplemental Plan?

You can ask your insurer to cancel your Medicare Supplement plan, but you’ll be left without the extra coverage it provides. Purchase another plan promptly or before canceling your current plan to continue to fill any gaps in your coverage. 

People cancel their current supplement plans for several reasons. One of the most common reasons is to switch plans. A switch could make sense if you’re paying for benefits you no longer need or if you want more coverage than you have on your current plan. You may also want to cancel your current plan to change insurance companies or find a more affordable policy.

Canceling a Medicare Supplement plan carries various risks. Switching plans can be costly if you are outside the six-month Medigap open enrollment period and lack guaranteed issue rights. Outside of this period, a new insurance company can make you undergo medical underwriting, which requires you to answer questions about your medical history. Medical underwriting can increase your monthly premium. This is because your rate will be determined by factoring in all treatments you’ve undergone and any new conditions you’ve developed.

What Is the Best Way To Cancel My Medicare Supplement Plan?

If you want to cancel your Medicare Supplement plan, contact your insurance company directly. The best time to cancel a Medicare Supplement plan is during the six-month open enrollment period. Canceling outside this timeframe can result in denied coverage or higher premiums based on your health conditions. If you must cancel outside the six-month open enrollment period, check whether you have guaranteed issue rights.

Before canceling, find companies who are willing to sell you a new policy. Only cancel your first policy once you’re comfortable with your new plan. You have 30 days to determine whether you want to keep the new policy. After 30 days, you must cancel one of the plans.

Does Moving to Another State Cancel My Medicare Supplement Plan?

Moving to another state does not cancel your Medicare Supplement plan. If you have Medicare Part A and Part B, you can keep your Medicare Supplement plan regardless of your state. The caveat is that Medicare Supplement insurance plans vary from state to state. Standardized plans only exist in some states. Places like Minnesota, Wisconsin, and Massachusetts have unique standardized Medicare Supplement plans. 

The premiums in your new state might be different. Talk with an experienced insurance agent to determine whether to keep or switch your current Medigap policy. If you find better offers in your new state and have guaranteed issue rights, you can cancel your old plan for a new one.

Medicare Supplemental Plans Texas Residents Should Look For

The Medicare Supplemental plans Texas residents should purchase are top-rated plans from leading insurance companies. Look for coverage that fills the gaps in your original plan and fits your budget.

Working with a Medicare broker can help you find a policy before canceling your current plan. They have experience in the industry and can help you compare different plans to find one that best suits your needs.

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