While your insurance company can’t cancel your supplemental policy unless they go out of business, or you violate the terms by not being truthful or not paying premiums, there may be times when you may want to drop you current Medigap insurance.
You have the right to cancel your contract at any time but, but depending on the timing or where you live, you may not be able to get it back at a later time. In fact, you may not even be able to join any other plan. Also, be aware that if you cancel one of the older supplemental plans (before 2006) which included prescription drugs, you may not only loose your medical benefits, but also find yourself without drug coverage. Also, if you decide to join a Part D prescription drug plan after dropping your Medigap plan, and your former drug coverage was not ‘creditable’, you will have to pay a late enrollment penalty.
If you cancel your current Medigap plan, there is no guarantee that an insurance company will sell you another Medigap policy if you don’t meet the medical underwriting requirements, unless in very specific circumstances. However, if you apply during your open enrollment period, you can buy any Medigap policy, even when you have health problems, for the same premium as if you had good health.
So, before you contact your insurance provider and ask to cancel your policy, carefully weigh your options.
If you find that supplemental plans in general are not for you, you may want to replace it with a Medicare advantage plan (MAP). You enroll in a MAP during the annual open enrollment period from October 15th to December 7th of each year. Unlike Medigap plans, advantage plans many times include prescription drug and other additional benefits, at a typically lower premium. However, you will have to select your health care provider from a list of providers that belong to the plan network.
