Concerned about whether can Medigap drop your insurance coverage? While rare, Medigap can cancel your coverage. Learn how to avoid mistakes and keep your Medicare insurance policy active.

Read this article and learn if Medigap can drop your plan

How can Medigap drop you?

All standard Medigap plans automatically renew every year, ensuring continuous coverage. No matter your health condition. MedSupp usually won’t cancel your coverage. To be clear, Medigap can not or will not cancel your coverage based on your medical needs or use of services.

You may risk losing Medigap in these 3 specific situations:

  • Non-Payment: If you don’t pay premiums on time, your coverage may be terminated.*
  • False Information: Giving wrong info on your application could lead to coverage cancellation.
  • Policy End: If the insurance company stops offering a specific Medigap plan. This is a very rare occurrence when an insurer goes bankrupt or ceases operations. In such a situation, you would have the chance to select another plan regardless of your current health situation. (Source)

*Senior65 Tip: Sign up for autopay (also known as EFT) so that your Medigap payments will be made on time each month. This is important because if you don’t have autopay and forget to pay your bill while in the hospital, your coverage can be terminated. If autopay is unable to process a payment due to insufficient funds or similar, the insurance provider will issue a paper invoice and will often extend your time to pay it by 30 days. Also, you will get an autopay discount!!!

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Can I drop my Medigap policy?

Certainly! You have the flexibility to cancel your Medigap policy at any time. However, please be aware of the following:

  • Coverage Gap: If you drop your Medigap policy without replacing it with another form of coverage, you may face a gap in coverage, leaving you vulnerable to high out-of-pocket costs.
  • Health Status: If you’re thinking of canceling your Medigap policy to switch to another plan, it’s important to understand that your ability to get approved may depend on your health status. Dropping a Medigap policy doesn’t trigger a guaranteed issue right for a new Medigap plan. You may need to go through the underwriting process, and approval is not guaranteed. Pre-existing conditions can impact approval or premium rates.
  • Enrollment Periods: While all Medicare-eligible people are approved on Medicare Advantage, MA plans only have certain enrollment periods when you can apply. If you drop your Medigap plan to switch to MA, you may need to wait until the first following year to start your Medicare Advantage plans. Learn more about the Medicare Annual Election Period.
  • Costs: Depending on when you drop your Medigap policy, you might lose money on premiums already paid. Additionally, new plans may have different premium rates.

The best option is to switch your insurance plan using special guaranteed switching rules. Read our article “Medicare Insurance Switching: Ultimate Guide“.

Next Steps

Before making any decisions, call us at 800-930-7956. Our team provides personalized guidance, helping you navigate Medicare complexities and make the best healthcare choices for your specific situation.