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

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

Generally, Medicare supplemental plans (also called Medigap) are guaranteed as renewable, meaning the insurance plan can not cancel the plan, except in some cases.

Medigap plans are provided by private insurance companies and can help pay for the cost of living for services covered by Medicare Part A and Part B. While Medicare plans are not provided by the federal government or the Medicare program, companies that sell Medigap policies must align with certain laws that regulate this type of insurance. One of these consumer protection laws is commonly referred to as the guaranteed right of renewal. If you purchased your Medicare care policy in 1992 or later, your insurance company cannot cancel coverage unless in very limited situations.

Medigap plans in general cannot cancel your policy

Normally, the insurance company that provides the Medigap policy cannot terminate your Medigap policy. In some cases, however, your plan may be canceled.

Exceptions to the Medicare supplemental plan renewal guarantee

Here are some circumstances in which an insurance company may terminate the Medicare supplemental policy.

  • You provided misleading or incorrect information about your Medicare supplement plan application.

Sometimes, a Medicare beneficiary, in a bid to secure coverage or obtain a reduced premium, may not provide truthful answers or withhold medical information in response to specific questions about the application of the Medicare supplement policy. If the insurance company discovers that you have provided inaccurate information during the application, the company may end the Medicare supplement policy.

Therefore, before sending it to the insurance company, you can carefully review your responses to the Medigap plan request. You may need to review the records to confirm the dates of treatment or diagnosis if you are not sure. Request clarification from the insurance company if you do not understand anything about the application.

Remember, if you request a Medicare supplement plan during the open enrollment period of the Medicare supplement, you cannot be denied, charged a higher premium, or expect coverage because of a medical condition. This open enrollment period for most people, is the six-month period that commences in your 65th-year or older and enrolled in Part B of Medicare.

  • You do not pay the Medicare supplement plan premium.

If you do not pay the premium, the insurance company has the right to cancel the policy. Insurance companies can send a delinquency notice to alert the user of a missed payment and its possible penalty.

To avoid the cancellation of the Medicare supplemental plan as a result of non-payment of the premium, be sure to pay the premiums on time. Immediately contact the insurance company if you receive an insolvency notice informing you that you are sending a payment or if you have any problems or questions related to the payment.

  • The insurance company that provides the Medigap plan declares bankruptcy or becomes insolvent.  If the insurance firm cancels the Medicare Supplement Plan because the company files for bankruptcy or terminates its business, you may be protected by a guaranteed right to issue certain Medicare supplement plans from other insurance companies that sell them in your locality. Get 2020 quotes at