A person who has been dropped from a Medicare insurance provider enters a policy period that gives him guaranteed issue rights. These rights guarantee that he can pick a new provider, if he provides the proper paperwork to the company, which includes documentation stating the reasons why he was dropped. Typical reasons are non-payment, filling out forms incorrectly, or a Medicare supplement provider going out of business. As long as a person follows the procedures correctly, he can get his guaranteed issue rights for Medigap by acting quickly. Procrastinating on filling out the forms can have more serious consequences.
When a Medicare supplement insurance provider drops a client, that client has a period of 3 to 6 months under which he must find a new provider if he wants guaranteed coverage. After this, an insurer can refuse to provide a person coverage if the company does not feel the new perspective client would make a good financial risk. The rest of the process is the same as any other Medicare supplement application process. It is, after all, what the recipient is doing during this period.
If a Medicare recipient decides not to take advantage of the guaranteed issue right for Medigap period, that does not mean he needs to give up on the idea of having Medicare supplemental coverage. It just means that getting a new policy will be a little more difficult, especially if he is in poor or declining health. Sometimes, a person will decide to go without the supplemental insurance completely. He still has standard Medicare coverage, whether or not he has a Medigap policy. Some people simply do not need the extra insurance coverage that the private companies provide.