There are few cases when it is possible for your Medicare plan to be terminated. Here is a breakdown of some reasons because your Medicare plan could be terminated.
Terminated regarding Nonpayment
Medicare plans can be terminated due to nonpayment of premiums. Plans will specify the grace period they allow before payment is considered outstanding, and this is usually around two months past the due date. If you do not pay your health insurance premiums by the end of your grace period, your plan may be terminated. If you feel your plan was wrongly terminated, you have the right to appeal the decision.
Nonpayment can influence your eligibility for future enrollment. Plans may require that you pay any past-due premium amounts from the last twelve months of coverage. You will also have to pay the first month’s premium at the time of enrollment.
Within 60 days of being dropped, you can contact your policy and request reinstatement with Good Cause. Medicare has a “Good Cause” policy that allows you to ask for your coverage to be reinstated if you can demonstrate good cause for not paying your premiums during the grace period. If you get accepted, you will have to pay outstanding premiums within three months of your disenrollment.
Medicare Advantage Terminated
If you get disenrolled from a Medicare Advantage plan, you are automatically re-enrolled in Original Medicare. If you want to choose a new Medicare Advantage plan, you will need to wait until the next enrollment period to do so.
Part D Terminated
If you get Extra Help from Medicare and your Part D prescription drug coverage plan is terminated, Medicare will mail you a Reassignment Notice. You will get this in October, and it lets you know that you will be reassigned to a new prescription drug plan for the next year. If you choose, you can join a new plan on your own after comparing your coverage options.
You can also be disenrolled from a Part D plan if you move out of the plan’s coverage area, lose Part A benefits, or stop having Part B. If you do not pay the Part D late enrollment penalty, you can also be dropped. You will have to pay any outstanding premiums if you wish to re-enroll.
Medicare Supplement Plan Terminated
Medicare Supplement plans can disenroll you if you do not pay your premiums, give false information on your application, or if the company goes bankrupt. Medicare Supplement plans are unique in that they are guaranteed renewable. If your plan is discontinued for a reason beyond your control, you have guaranteed-issue rights that let you buy a new Medicare Supplement plan without medical underwriting. Six of the ten plans are available under this guaranteed-issue, and you have 63 days to enroll in one after yours is discontinued.
If your Medicare plan has been terminated and you are unsure of what to do to regain coverage, reach out to Turning 65 Solutions today. We can answer any questions you have and help you find new coverage.