Missing a payment on your Medicare Supplement (Medigap) plan doesn’t always mean your coverage disappears immediately. But, it is something you want to address quickly. If the situation goes on too long, you could lose your policy, and it can be very difficult to get it back.

Below, this Medicare Supplement broker in Chesterton, Indiana is going to explain what typically happens to your Medigap coverage if you miss a premium payment.

Does Medigap cancel automatically if you forget to pay?

Usually, no. In most cases, your Medigap coverage does not cancel the second you miss a payment. Insurance companies generally build in a grace period because they know real life happens. So, if you miss a premium, it is usually treated as something you can fix.

That said, Medigap still is not something you can leave unpaid for long. Even though Medigap plans are guaranteed renewable, that simply means the insurance company can’t drop you for getting sick or using the plan. But you do still have to keep paying your premiums.

Nonpayment is one of the main reasons a Medigap policy can legally end. So, if you realize you have missed a payment, it is best to treat it like a time-sensitive issue. Paying as soon as possible and calling the insurance company’s billing department can help you avoid any lapse. They can tell you exactly how much time you have before coverage would terminate.

And if you are confused about what applies to your exact situation, you can always talk to an experienced Medicare Supplement broker in Chesterton, Indiana.

What is the grace period on a Medigap plan if you miss a payment?

If you miss a payment on your Medigap plan, most insurance companies in Chesterton, Indiana will usually give you a grace period. This is some extra time after your premium due date where you can still pay and keep your policy active. That grace period can be around 30 or 31 days. And during that window, your Medigap coverage is typically still technically active, and you may still be covered.

Even though you may still have coverage during the grace period, your insurance company may not actually process your claims immediately if your payment is overdue. What can happen is they will put claims into a pending status and hit pause until your premium is paid, and your account is current.

So, you are not necessarily uninsured during the grace period. But if you need the plan to pay a claim, the insurance company may hold off until it receives that payment. This is why you need to act immediately, even if you believe you are still within the grace period.

Can you reinstate your Medigap policy after you miss a payment?

Once the insurance company officially terminates the policy for nonpayment, reinstatement is no longer guaranteed. At that point, the company may decide it will not reactivate it at all. Or they may treat it like you are starting over as a new applicant. And if they go that route, you are suddenly right back in medical underwriting territory, where acceptance is not automatic and rates can be uncertain.

If you have missed a payment, call the insurance company immediately and ask for your policy status. Specifically, find out if you are still in the grace period and what the very last day is that they will accept payment before the plan is terminated. The sooner you act, the better your odds are of moving on from this situation.

If you still have unanswered questions, do not hesitate to reach out to an experienced Medicare Supplement broker in Chesterton, Indiana. They can tell you what the notice means, and they can also help you avoid missing any key deadlines.

Looking for a Medicare Supplement broker in Chesterton, Indiana?

If you missed a Medigap premium payment and you are worried your coverage could lapse, now is the time to talk to an experienced Medicare Supplement broker in Chesterton, Indiana. Our licensed agents at Senior Care Insurance Services (SCIS) can help you confirm your policy status and explore your options to keep your coverage active. Contact us today to schedule an appointment.