What to Do if Your Medicare Supplement Insurance Plan is Discontinued

What to Do if Your Medicare Supplement Insurance Plan is Discontinued

Medicare supplement insurance plans, also known as Medigap plans, aid in funding health care that Medicare does not cover. Medigap plans cover deductibles, coinsurance, and co-payments. Certain Medicare supplemental insurance plans may also cover costs that Medicare does not, including medical treatments when traveling outside of the United States. Medicare pays for the Medicare-approved amount in covered health costs and the supplemental insurance plan pays for the rest of the medical costs. If you find that your Medicare supplement insurance plan has been discontinued, there may be several reasons why the plan is not available.

Guaranteed Renewable Plans

Generally, Medicare supplemental insurance plans are set as renewable. This means the plan cannot drop your coverage if you develop new health conditions. Guaranteed renewable Medicare supplemental insurance is the standard and mandates that the insurance plan can not drop you if you develop new medical issues. Keep in mind that if you bought Medicare supplemental insurance prior to 1992, your plan may not be guaranteed renewable. If your plan is not guaranteed renewable, then your insurance plan could be canceled by your insurance company with the approval of your state government.

Situational Coverage Loss

There are certain cases and situations that may cause you to lose coverage. Some reasons that your plan may be discontinued include your insurance company filed for bankruptcy, your insurance company goes out of business, you supplied false information when you applied for your plan, or you failed to pay the premiums on a monthly basis. If your plan was discontinued and the discontinuation was not due to you missing payments or providing false information, you may be able to apply and purchase a different plan for supplemental Medicare insurance. In the majority of states, supplemental Medicare plans are labeled by letters and may include plan A, plan B, plan C, plan F, plan K, or plan L. Be sure to make copies and keep records of notices, emails, and letters that your plan is indeed ending in order to provide proof of termination of coverage. These records will be needed when you apply for your new Medicare supplemental plan.

Guaranteed Issue Rights

In order to retain supplemental Medicare coverage, you must apply for a new Medicare supplement plan within 63 days from the day your coverage ended. You have a guaranteed issue right to buy a new Medicare supplement plan if your old one was discontinued or canceled. Your guaranteed issue right is in place to serve as protection from medical underwriting. Medical underwriting involves the insurance company collecting information regarding your health history as well as the evaluation of current or past medical diagnoses or issues.

All of the information collected during the medical underwriting process may be used in the decision to grant or deny your insurance application. If you are not protected against medical underwriting and you have any pre-existing conditions, you may be denied or have a higher payment for your premium. As long as you apply for your new Medicare plan within 63 days of your last supplemental plan ending or you have guaranteed issue rights, the insurance company can not use medical underwriting in making a decision regarding granting you an insurance plan.

To learn more about Medicare supplement plans or get a quote for a policy, contact Plan Medigap by calling (800) 750-2407 today.