A Medicare Advantage Plan can help a person save money, but the plans can drop clients. Because the programs are overseen by the federal government, the conditions under which a person can drop a subscriber from a Medicare Advantage Plan are limited. If the plan does decide to drop a subscriber, they are obligated to let a subscriber know in writing.
When a subscriber receives the notification letter, the first and most important thing he can do is not to panic. Losing an Advantage coverage does not mean that a person has lost the original Medicare program. He is still covered, and he probably remembered to keep his Medicare card somewhere in his important papers. The second thing he needs to do is photocopy the letter informing him that he has been dropped.
The most common reason for an insurance company to drop people is the same reason any insurance company drops subscribers. Non-payment is the most common reason. Insurance companies also drop customers from Medicare Advantage plans when they go out of business. The final reason is failure to fill out forms correctly.
A subscriber can get another Medicare Advantage policy is one is available in his area. If he loses a Medicare Advantage plan, he can get a Medigap plan to make up the difference in his loss of coverage. If he acts quickly, the new insurance company cannot turn him down for any reason. Medicare Advantage Plans operate under different rules, but a person has a Medicare Advantage Plan, he cannot buy Medicare coverage from a Health Maintenance Organization. A person over the age of 65 cannot lose Medicare coverage under most circumstances.