Millions of people eligible for Original Medicare also sign up for additional healthcare coverage. These plans, designed to fill in the gaps of Medicare Parts A and B, offer benefits and cost-sharing through standardized Medicare Supplement plans. Some people select a Medicare Supplement plan, also called a Medigap plan, but then decide they no longer wish to keep it.  

Can you cancel your Medicare Supplement plan any time you want? And how do you cancel? Let’s dive into how you can cancel your Medigap policy and what that process can mean for you. 

Can you cancel a Medicare Supplement plan at any time? 

Yes, you can cancel your Medigap policy anytime. You can call the insurance company anytime and let them know you wish to cancel your policy. But there are crucial things you need to know about what can happen if you choose to do so. If you cancel your Medicare Supplement policy, then: 

  • You may have to undergo a health screening before enrolling in another plan; 
  • You may have to pay higher premiums for another plan; 
  • Other insurers may offer the same types of policies but with very different premiums. 

Why do people cancel their Medigap policies? 

There are many reasons why people choose to cancel their Medicare Supplement policies. You might decide to cancel yours because: 

  • You are moving to another part of the country, and your current insurer does not provide coverage where you will be living; 
  • Your current plan may not meet your changing health needs; 
  • Your current plan may not fit your changing budget. 

Managing your finances during your retirement can be challenging. Many people purchase Medigap plans to help them balance out-of-pocket costs through premiums, deductibles, and copays or coinsurance. But then their financial situation changes and they may want to re-think their health insurance options.

For example, some people in favorable financial situations may decide to rely only on Original Medicare for coverage and pay for everything else out-of-pocket. Others struggle with sudden, large expenses and prefer to manage them with additional insurance different from Medigap. And sometimes people find that their financial situation changes significantly for the worse. In this case, if a person qualifies for Medicaid, they do not need to maintain their Medicare Supplement policy. 

Should I cancel my Medicare Supplement Insurance if I move? 

You do not have to cancel your Medigap plan just because you move. Many insurers provide plans with broad coverage areas, and you may only need to change doctors. In addition, your insurer cannot cancel your coverage because you moved as long as you are paying your premiums. But there are some cases when you may need to change plans.  

For example, if you move to or from Minnesota, Wisconsin, or Massachusetts, you will notice that their standardized plans differ from other states. Rather than the lettered Medigap policies, they have their own plans. Also, some insurers only offer coverage in some areas, so to see a doctor, you may have to move to a new insurer. And when you move, you may notice a difference in plan premiums, even if you keep your existing plans. This is because insurers can base their plan pricing on several factors, including location or community. 

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When can a Medicare Supplement plan be canceled by an insurer? 

Many people worry that if something happens, they could lose their insurance. There are some cases when an insurer can cancel a Medicare Supplement plan, such as: 

  • If you stop paying the monthly premiums; 
  • If your insurer becomes insolvent or goes bankrupt; 
  • If you no longer qualify for Original Medicare (which is a very rare case);
  • If you gave false information on your Medicare Supplement insurance policy application;
  • If you break your Medigap policy’s terms and conditions. 

If an insurer cancels your policy or drops you because they become insolvent, go bankrupt, or through no fault of your own, you are then covered by guaranteed issue rights. If your insurer cancels your Medigap coverage, then guaranteed issue rights can help you transition to another plan without having to undergo a health screening and paying a premium penalty. 

How do I cancel my Medigap policy? 

You can cancel your Medigap plan by calling your insurer. Some insurers may ask you to submit your cancellation in writing, while others can help you over the phone. In some cases, you may be able to begin canceling your policy online through the insurer’s website.  

Do I have to cancel my Medigap policy to switch to another plan? 

No! You do not have to cancel your current Medicare Supplement plan if you are considering another plan. For instance, if you have Plan N and you would like to try Plan G, you can use the “free look period.” You can enroll in both plans for up to 30 days during the free look period. You can try out the new policy coverage to see if you like it better than your current plan. If you do, it’s essential to enroll and get accepted into the new plan first before canceling your old coverage, so you have no gaps in coverage while you transition.  

However, remember that while you can use the free look period, there is no guarantee that the new plan will accept you unless you qualify for guaranteed issue rights. In addition, your new insurer may require you to undergo a health screening, and you may have to pay a higher premium or wait to receive care for pre-existing conditions.  

Can I re-enroll in my Medicare Supplement plan later? 

If you cancel your Medigap plan and do not re-enroll during the Open Enrollment Period, or if you cancel and do not qualify for guaranteed issue rights, you may experience challenges trying to re-enroll in a Medicare Supplement plan. Without those protections, you may have to pay a higher premium, even if you are re-enrolling in the same plan. And in some cases, your old plan may no longer be available once you leave it. Plans C and F, for example, are no longer available. If you have one of these plans and cancel your policy, you cannot get it back. 

Navigating Medicare decisions can be challenging, but Hella Health is here to help. Check out our Medicare Coach to get answers to your Medigap questions.