Can a Medicare Supplement Company Cancel My Medigap Plan?

Yes, Medicare Supplement companies have the authority to cancel your Medigap plan in certain situations.

Typical scenarios for cancellation include non-payment of premiums or instances of misrepresentation or fraudulent activity during the application process.

Reasons for Plan Cancellation

While Medigap plans are generally not canceled by Medicare Supplement companies, there are still situations where your plan can be terminated:

• Unpaid premiums: If you fail to pay your monthly premiums on time or at all, the insurance company has the right to cancel your plan. Always ensure your payments are timely to keep your coverage intact.
• Misrepresentation on application: If you lied or omitted false information on your application, the company can cancel your policy. Always be honest and thorough about health conditions when filling out applications.
• Company insolvency: In rare cases, if the insurance company faces financial trouble or goes bankrupt, it may no longer be able to provide coverage, and your policy could be canceled.
• Policy withdrawal: If the insurance company stops offering a particular policy, they can cancel it. However, they usually provide advance notice and options to switch to an alternative plan.

What if I Move?

If you move to another state, your Medicare Supplement plan is no longer guaranteed. Each state has its own Medigap policies, which means that your current policy may not be accepted in your new location.

As a result, you will likely have to switch to a different plan or look for a new insurance provider that operates in the state you’re moving to.

It’s important to note that pre-existing medical conditions could affect your ability to obtain coverage when switching states. Insurance providers may have different guidelines and rules regarding pre-existing conditions.

What if I Switch to a Medicare Advantage Plan?

If you switch from a Medicare Supplement policy to a Medicare Advantage plan, your Medigap coverage will be canceled. This is because these two types of plans are not compatible with one another.

Moreover, you may be subjected to medical underwriting if you opt to switch plans. Your new Medicare Advantage plan may not cover any pre-existing conditions.

It’s important to consider all your options before changing your coverage.

Bottom Line

Typically, a Medicare Supplement company cannot terminate your Medigap plan if you are truthful when applying and consistently pay your premiums.

If you decide to relocate to a different state, switch to an Advantage plan, or neglect to pay your premiums, your policy may be at risk of cancellation. It is crucial to conduct thorough research and consult with a licensed insurance agent before making any changes.

Sources: How Medigap Works | Rights + Protections | CMS

FAQs

What are guaranteed issue rights?

Guaranteed issue rights are the rights given to you by law that protect your ability to purchase Medigap plans, even if you have pre-existing conditions.

Can I be dropped from my Medigap policy for any reason?

In general, you cannot be dropped from your policy for any reason as long as you pay your premiums and do not lie on your application.

What if I move out of the country?

If you move out of the country, your Medigap policy will be canceled.