Medicare Supplemental Insurance: When Can My Policy be Cancelled?
A person who has a Medicare Supplemental Policy wants to keep it for as long as he can. Traditional insurance policies will find any number of ways to cancel a client's policy if the client becomes unprofitable to the insurance company. Although a private company administers a supplemental Medicare insurance policy, the company must answer to the federal government in its operations of the policy. The Federal Government, not the insurance company itself, sets limits on when an insurance company can cancel an individual Medigap policy.
Most Common Reason for Cancellation of a Medicare Supplemental Insurance Plan
The insurance company who provides an individual’s coverage faithfully mails notifications about when they expect payment to the consumer every month. As long as the beneficiary sends off the payment in a reasonable amount of time, the beneficiary gets to keep his coverage. No one wants to get behind on their bills, but it does happen from time to time. When a person gets behind on his bills, he usually lets the provider know and makes arrangements. Continued non-payment of a Medicare Supplemental Insurance plan premium results in cancellation of the policy. Expensive conditions or preexisting conditions do not cause a person to get dropped.
Other Situations That Cause a Company to Drop a Medicare Supplemental Insurance Plan
There are two other situations that allow a Medigap provider to drop a person's Medicare supplemental insurance. The first involves the company going out of business. In this situation, the company is not expect to maintain any insurance policies, regardless of who holds them. The second time when a company is allowed to cancel a person's coverage is when a person falsifies information. An insurance company can drop a person in this case, although the company most notify the beneficiary in writing. When an insurance company drops a person for any reason, the beneficiary has a guaranteed issue rights period.