Medicare Plan

What to do When Your Medicare Plan is Cancelled

Your Medicare Advantage plan or Medicare Supplement plan has the right, in some situations, to cancel your plan. For example, your plan can be canceled if you move out of your plan’s service area, fail to pay your monthly premiums, no guaranteed renewal, the provider declares bankruptcy, or you act in an abusive or disruptive way towards your Medicare plan.

People who are losing coverage must take action and try to receive a new plan by January 1, or they will face gaps in coverage that can be very costly. Here are the things to know and do when your Medicare plan is canceled.

Guaranteed Issue Rights

Those that lose coverage usually have guaranteed issue rights, especially if the loss wasn’t their fault. You can’t control whether a plan provider doesn’t abide by guaranteed renewal or goes bankrupt, so you can’t be punished in those situations. 

However, if it’s your fault that you lose your coverage, you likely won’t have guaranteed issue rights. Though you can still apply for a new plan, your plan provider can deny your re-enrollment or charge you a greater premium.

The Consequences and Solution to Medicare Termination

What happens if your plan is canceled? Can you get the coverage back? Yes, you can get them back, but only at certain times. Depending on the provider that canceled your plan, here are the rules when you are dropped from a certain plan:

Medicare Part A or Part B: beneficiaries can re-enroll in these plans only during the general enrollment period. This enrollment period runs from January 1 to March 31 each year. The coverage, however, doesn’t start until July 1. It is also possible that you get served with permanent late penalties.

Medicare Part D: Medicare beneficiaries can sign up for the Medicare Part D plan again during the open enrollment period that runs from October 15 to December 7 every year. With this, you can go for many months without coverage. You can also incur late penalties when you sign up for the plan again.

Moreover, your current plan provider has the legal right to take action against you to recover the premiums you have yet to pay or decide not to re-enroll you until you have paid the premium.

Medicare Advantage Plan: Remember, Medicare beneficiaries dropped from their coverage are still automatically covered for medical services, provided they have kept up with their Medicare Part B premiums. But the beneficiary will lose coverage if his or her Medicare Advantage plan includes Part D services.

You can enroll in a different Medicare Advantage Plan and select drug coverage. However, you can only do this during the open enrollment period. You can also re-enroll during the special enrollment period if you qualify. 

You should also know that your current Medicare plan can decide to take legal action against you to recover unpaid premiums and block you from re-enrolling in the same plan until you pay your premium.

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