Medigap policies are guaranteed renewable, which means that your plan will remain active as long as you keep paying your premiums. Your insurance company cannot cancel your policy just because you develop new medical conditions as you get older.

Below, this supplemental insurance agency in Northwest Indiana is going to explain what “guaranteed renewable” means in the context of health insurance, and we’ll also explore some of the rare situations where a Medigap policy could be canceled.

What does “guaranteed renewable” mean?

Guaranteed renewability is a federal protection for all Medigap policyholders. Under this protection, your insurance company must renew your Medigap policy every year as long as you keep paying your premiums on time. They cannot drop you from your plan just because you are getting older or developing new health conditions.

If you have any questions about guaranteed renewability, a local supplemental insurance agency in Northwest Indiana can explain in detail how this protection applies to you.

The only reasons your Medigap policy might be canceled are non-payment, application fraud, or insurer bankruptcy.

Even though Medigap policies are renewable, there are some situations where an insurance company can legally cancel your policy. These cases are rare, but they are still important for you to be aware of, so you don’t accidentally lose coverage.

Not paying your premiums. If you miss payments, your insurance company has the right to cancel your plan. Most companies will give you a grace period of at least 30 days, but you are going to lose coverage if you keep missing payments.

Giving false information on your application: If you lied or left out important information when applying for your Medigap policy, your insurance company can cancel your plan.

Insurance company goes bankrupt: Your coverage could also be affected if your insurance company goes out of business. However, state regulations usually offer some protection in these situations. For example, in Illinois, the Illinois Life and Health Insurance Guaranty Association is there to help make sure that claims are paid if an insurance company fails.

Your Medigap plan will not adjust to Medicare changes.

Although Medigap policies are guaranteed renewable, they don’t automatically update when Medicare changes its coverage rules, deductibles, or cost-sharing amounts. For example, if Medicare increases deductibles or out-of-pocket costs, your Medigap policy will not automatically adjust to match those changes.

This is why it’s best to review your policy with an experienced supplemental insurance agency in Northwest Indiana every year. You need to make sure your Medigap plan still fits your needs and will still help you avoid unexpected healthcare costs.

If you switch to a new Medigap plan, you may have to go through medical underwriting.

Because Medigap plans are renewable, you don’t really have to switch policies unless you want to. But if you do decide to switch to a new Medigap plan, you will have to go through medical underwriting.

During your medical underwriting, the insurance company can review your health history before approving your new plan. Depending on whether you have certain medical conditions, the insurance company could charge you more or even deny your application if they consider you to be too high of a risk.

The best time to enroll in or switch Medigap plans is during your Medigap Open Enrollment Period. During this period, you can buy any Medigap plan available in your state without going through medical underwriting.

If you are outside this enrollment window, a supplemental insurance agency in Northwest Indiana can help you understand your options and find the best available plan for your situation.

Regularly reviewing your Medigap coverage is necessary.

Even though Medigap policies don’t expire, your healthcare needs and costs will change over time. You might start seeing new doctors who may or may not accept your current plan or you might need different medications that might not be fully covered by your current plan. You could also be affected by Medicare’s changing costs, like higher deductibles or new coverage limits.

An annual review of your Medigap policy can help you make sure your plan is still the best match for your needs.

Looking for a Supplemental Insurance Agency in Northwest Indiana?

Are you ready to consult with an experienced supplemental insurance agency in Northwest Indiana that can help you review your Medigap options? If so, you’ve come to the right place — Senior Care Insurance Services is here to help. Our agents will help you understand your renewal rights so you can make informed decisions about your Medicare coverage. Contact us today to schedule an appointment with our agents.