Over 14 million Original Medicare recipients in the United States also have a Medicare Supplement, or Medigap, policy. You can purchase one of several types of existing Medigap policies from participating private insurance companies across the country.
The purpose of Medicare Supplement plans is to help Medicare recipients fill in the gaps that are left after Original Medicare, Part A (hospital insurance) and Part B (medical insurance), pay for your health care services. Medigap plans cover some of your out of pocket expenses like copayments, coinsurances, and some deductibles not included in Original Medicare benefits.
There are currently several types of Medigap policies available to purchase in most states. All plans are different in what they cover, but they are standardized across the country.
If you currently have a Medicare Supplement policy, or are considering getting one, you may be wondering if you have the right to cancel your policy at any time. According to regulations, you have the right to cancel, but this does not guarantee that you will be accepted for coverage with another policy if you decide to sign up again. Here are some of the basics about canceling your Medicare supplement policy.
Can you cancel your Medicare Supplement plan?
If your health care needs change and you no longer wish to keep your current Medicare Supplement insurance policy, you can cancel it at any time. There is no disenrollment period and there are no penalties for canceling. Also, canceling your Medigap policy does not affect your Original Medicare benefits in any way.
Canceling, or disenrolling in a Medicare Supplement plan may be easy, but it may not be quite as easy to enroll in a new plan, or to re-enroll in the same plan at a later date. Keep this in mind before making your final decision.
How do you cancel your Medicare Supplement plan?
If you want to cancel your plan, you must contact the insurance company that provides the plan and inform them that you wish to drop it. You should inform them both in writing and over the phone. When you talk to a representative of your insurance provider, they can inform you as to what steps to take to complete the process. Depending on what company your provider is, they may ask you for a formal termination letter, or that you fill out a disenrollment form.
When you terminate your policy, in most cases it continues through the month that you have already paid. Some insurance companies offer a refund of unused funds if applicable. Make sure you discuss all the details involved with the termination of your policy.
What are some reasons for canceling a Medicare Supplement plan?
Health care needs change with time, and what may have been a good insurance plan at one time, may become unnecessary at another. Many people decide to cancel a Medigap policy because they have found another one that suits their needs better. Others find that they do not need the added coverage because they are very healthy. Or, if you are moving to another part of the country that does not offer your current plan, you may have to cancel yours before you sign up for another one.
No matter the reason, if you wish to cancel your Medicare Supplement plan, you may. Be sure to discuss all the details about your provider’s requirements for disenrollment with a licensed agent.