When you miss a Medigap payment, you don’t lose your coverage instantly. You have some time, and there are steps you can take to prevent any long-term consequences. But before things escalate, it’s important to understand how Medigap renewal works and what your options are.

Below, this Supplemental Medicare agency in Valparaiso, Indiana is going to explain some of the key things you should know in order to protect your coverage.

How does Medigap’s guaranteed renewal work?

Medigap plans are considered “guaranteed renewable” under federal rules. Once you buy a policy, you can keep it for life as long as you continue paying your premiums. Even if your health changes, the insurance company cannot cancel your coverage if you pay on time.

But if you miss a payment, the insurance company can cancel your plan. In many cases, you may have a short grace period (generally around 30 days) to make a late payment. Your coverage will stay active during this window as long as you make the overdue payment in time. But the company no longer must keep your policy active once the grace period expires.

Reinstating a Medigap plan that is cancelled for non-payment can be a hard task. Some insurance companies allow a brief reinstatement window while others may require you to reapply entirely. And in the case of reapplication, you could face underwriting and potentially higher premiums.

Because of this, you should consider reaching out to a trusted Supplemental Medicare agency in Valparaiso, Indiana as early as possible. They can review your specific situation and explain which options are still available.

How can a late Medigap payment affect you in the long term?

Losing a Medigap policy because of non-payment can have serious long-term consequences and the loss of supplemental coverage is only the start.

The first problem is that you may no longer have guaranteed rights to buy another Medigap plan. These rights mainly apply when you turn 65 or when you first enroll in Medicare Part B. Outside of those periods, you generally must go through medical underwriting.

Even if you do qualify for a new Medigap policy through underwriting, you may have to pay more than you would have during your original enrollment period. Insurance companies can factor in your age and health when setting premiums outside of open enrollment. So, if you are older or if you have a pre-existing condition, you could have to pay much higher premiums than younger and healthier applicants.

On top of that, a lapse in supplemental coverage can leave you managing unpredictable medical costs on your own. Without a Medigap plan, you must rely on your Original Medicare (Parts A and B). But even then, you’ll still have to pay deductibles, coinsurance and copayments out of pocket.

Original Medicare forms the foundation of your health coverage. But Medigap is what can control those unexpected costs. Losing it means losing that financial safety net.

How should you handle the situation?

The situation is usually fixable if you catch the missed payment early. Call your insurance company first. Their customer service team can confirm if you are still within the grace period and let you know exactly what needs to be done.

If the grace period has already passed, you could ask if reinstatement is still an option. Some insurance companies offer a short reinstatement window after cancellation. But not all companies do. Still, the sooner you reach out, the better your chances.

If reinstatement is not an option, your next step may be to apply for a new Medigap plan or get Medicare Advantage. At this point, you could really benefit from having some expert guidance. An experienced Supplemental Medicare agency in Valparaiso, Indiana can explain your options so you can decide on the best path forward.

Looking for a Supplemental Medicare Agency in Valparaiso, Indiana?

Have you missed a Medigap payment? Wondering if your coverage could be at risk? If so, and if you’re ready to consult with an experienced Supplemental Medicare agency in Valparaiso, Indiana, Senior Care Insurance Services is here to help. Our licensed agents can answer all your questions and help you avoid coverage gaps. We can also help you with reinstatement or re-enrollment if needed. Contact us today to learn more.