Can My Medicare Supplement Plan Be Canceled by My Insurer?

Key Takeaways

1. Understand Cancellation Rules: Medicare Supplement Plans are generally guaranteed renewable but can be canceled under specific circumstances, such as non-payment or misrepresentation.
2. Regularly Review Your Plan: Monitor plan costs and benefits to ensure they fit your healthcare and financial needs best.
3. Stay Proactive: Keep up with insurer policy changes to avoid unexpected cancellations and maintain uninterrupted coverage.

Anybody who invests in a Medicare Supplement or Medigap plan to fill coverage gaps in Original Medicare expects reliable, long-term protection.

Many beneficiaries worry about whether the insurer can cancel a Medicare Supplement plan.

A Medigap plan is a significant guardrail against excessive out-of-pocket costs, so you want to be sure it pays when needed.

While these plans are generally renewable, you should know some critical exceptions.

This explainer walks you through the circumstances under which a Medigap plan can be canceled, how to avoid losing your coverage, and what to do if your plan is terminated.

Can My Medicare Supplement Plan Be Canceled?

The good news is that Medicare Supplement or Medigap plans have a significant protection: guaranteed renewability. Insurance companies cannot cancel your Medigap policy if you pay your premiums on time.

This long-standing federal protection ensures stability in the healthcare coverage of the elderly and the disabled.

There are, however, specific circumstances when the insurer can cancel a Medicare Supplement plan:

• Non-payment of premiums: If you fail to pay your monthly premiums by the due date (and within any grace period thereafter), your insurer has grounds to terminate your coverage.
• False application information: If you provided inaccurate or misleading information during the application process, your insurer may cancel your policy.
• Insurer going out of business: Your policy will be terminated if your insurance company goes under. Beneficiaries typically have guaranteed issue rights to purchase another Medigap plan without medical underwriting in such cases.
• Switching to Medicare Advantage: You cannot simultaneously be enrolled in a Medicare Advantage and Medigap plan. If you decide to switch from Original Medicare to Medicare Advantage, you may lose your guaranteed issue rights for Medigap. That means you may be denied coverage or charged a higher premium if you switch back later.
• Special state exception: In some states, insurance companies may refuse to renew a Medigap policy bought before 1992.

Learn more: Medicare Supplement (Medigap) vs. Medicare Advantage

Comparing Medicare Supplement Plan Features and Costs

Medicare Supplement plans are standardized and labeled as A, B, C, D, F, G, K, L, M, and N. These plans offer the same basic benefits regardless of the insurance company selling them.

Some Medicare Supplement plans offer comprehensive coverage with higher premiums but minimal out-of-pocket costs. Others provide basic benefits at lower monthly rates but with more cost-sharing.

Premiums and out-of-pocket costs for the same plan can vary significantly between insurers and locations. Some states mandate additional regulations on Medigap policies that affect how they are priced.

Insurers can also base Medicare Supplement premiums on age, gender, and tobacco use.

Here’s a comparison of different plan types and average nationwide costs.

*Plan N requires a copayment of up to $20 for office visits and up to $50 for emergency room visits that don’t result in an inpatient admission.
**Data for 2023 as per research by the Kaiser Family Foundation.
***Plans C and F are not available to individuals who became eligible for Medicare on or after January 1, 2020.

Learn more: How to Compare Medicare Supplement Plans.

How to Avoid Losing Your Medicare Supplement Plan

Take these proactive steps to reduce the risk of losing your Medigap coverage:

1. Set up automatic premium payments through your bank or insurance company to eliminate the risk of missed payments and potential cancellations.
2. Review plan details annually during the Medicare Open Enrollment Period to ensure your plan still meets your healthcare needs and budget.
3. Stay informed on insurer policy changes by carefully reading all communications from your insurance company, including premium increase notices.
4. Consider state-specific protections that may offer additional safeguards for Medigap policyholders in your area.

What to Do If Your Medicare Supplement Plan Is Canceled

You must act quickly if you find yourself without Medigap coverage.

Start by checking your guaranteed issue rights. These rights may allow you to purchase another Medicare Supplement plan without undergoing medical underwriting in specific situations.

That is the ideal option.

If you do not qualify for another Medigap plan due to health conditions or can’t find one that meets your needs, consider exploring Medicare Advantage plans as an alternative.

Licensed insurance advisors like CoverRight can help you navigate the transition and quickly find alternative Medicare Supplement coverage.

Learn more: Does Medicare Supplement Cover Pre-existing Medical Conditions?

Get Personalized Medicare Guidance

Navigating Medicare alone can be overwhelming, although it doesn’t have to be.

Contact CoverRight today if you need help understanding your options, comparing plans, and securing the best coverage, given your healthcare needs and budget.

Sources

1. Medicare.gov
   • Medicare Enrollment and Coverage. Available at: medicare.gov. Last Accessed March 7, 2025.
2. Medicare.gov
   • Medicare Savings Programs. Available at: medicare.gov. Last Accessed March 8, 2025.
3. Medicare.gov
   • Care Compare Tool. Available at: medicare.gov. Last Accessed March 6, 2025.

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