Medicare Advantage Plan - Can that be cancelled?

[jojo]

We switched to the Supplement plan because of concern that Advantage plans could be cancelled and that you would be required to go through underwriting etc. to get a new plan. Any thoughts about this concern? We understand that supplement plan premiums could increase but understand that once in they cannot be cancelled. I have not heard of anyone having an Advantage plan cancelled.

[FenneyGuy]

We switched to the Supplement plan because of concern that Advantage plans could be cancelled and that you would be required to go through underwriting etc. to get a new plan. Any thoughts about this concern? We understand that supplement plan premiums could increase but understand that once in they cannot be cancelled. I have not heard of anyone having an Advantage plan cancelled.

Never have had any Advantage Plan cancelled. I have had an Advantage plan for 5 of the 6 years I've been on Medicare.

[Carla B]

Probably only can be cancelled if the company becomes insolvent.

[mtdjed]

Maybe I am missing the point, but a Medicare Advantage plan can be closed down. Take in case the Physicians United Plan (PUP) which became insolvent.

An article in 2014
"Physicians United Plan, a Medicare Advantage plan with more than 6,200 members in Marion County, is in the process of being closed.
A circuit judge in Leon County has approved having the state take over the plan and liquidate it. State officials said the plan is insolvent.

[villagetinker]

I would do a search on Google for plan closures or terminations, that should give you an idea. If I recall correctly, there were some problems with plans "leaving" various areas of the country, but I do not know if these were advantage plans, supplemental plans, or Obama care plans for those under 65.

[JGVillages]

Maybe I am missing the point, but a Medicare Advantage plan can be closed down. Take in case the Physicians United Plan (PUP) which became insolvent.

An article in 2014
"Physicians United Plan, a Medicare Advantage plan with more than 6,200 members in Marion County, is in the process of being closed.
A circuit judge in Leon County has approved having the state take over the plan and liquidate it. State officials said the plan is insolvent.

Any plan, Advantage or Supplemental can be terminated if the issuing company becomes insolvent. I have had Florida Blue Advantage plan for 6+ years. I do believe there is less chance of insolvency when you deal with a larger company that has a track record for decades of healthcare reliability. The Advantage Plans coverages, cost, participating psycians, and hospitals can change from year to year. That is why every year during the enrollment period I re-analyze all of the above mentioned factors so if a change is necessary there will be time to do so.

[Mikeod]

When PUP went out of business, my mom was automatically transferred to regular Medicare for a month. We had been told PUP would cease at the end of June, but they stopped at the end of May. So my mom accumulated a bunch of charges under regular Medicare that had been covered by PUP.
We were able to sign her up for another advantage plan without any trouble despite pre-existing conditions. I believe that is a normal function of Medicare to allow this type of switch under special circumstances.

[Dan9871]

We switched to the Supplement plan because of concern that Advantage plans could be cancelled and that you would be required to go through underwriting etc. to get a new plan. Any thoughts about this concern? We understand that supplement plan premiums could increase but understand that once in they cannot be cancelled. I have not heard of anyone having an Advantage plan cancelled.


If your medicare advantage plan is cancelled you have a "right to issue" which means any company selling a supplemental for regular medicare in your area would have to accept you without having to be underwritten or pay an increased premium.

guaranteed issue rights | Medicare.gov (https://www.medicare.gov/supplement-other-insurance/when-can-i-buy-medigap/guaranteed-issue-rights-scenarios.html)

[wendyquat]

You sound knowledgeable on the subject. I haven’t found an agent who can answer my question: “If I change from Medicare with supplement to an advantage plan can I switch back at open enrollment if I’m not satisfied with the advantage plan?” Would my pre-existing be covered? Thanks

[Dan9871]

You sound knowledgeable on the subject. I haven’t found an agent who can answer my question: “If I change from Medicare with supplement to an advantage plan can I switch back at open enrollment if I’m not satisfied with the advantage plan?” Would my pre-existing be covered? Thanks

There are a number cases when you can do that listed on guaranteed issue rights | Medicare.gov (https://www.medicare.gov/supplement-other-insurance/when-can-i-buy-medigap/guaranteed-issue-rights-scenarios.html#1360)


In general if you are not satisfied in the first year of using the Advantage plan you can switch back to a regular supplemental without having to pay an increased premium or take a physical.

There is a lot of info on the medicare.gov web site...

Some of the cases from that page:

"You joined a Medicare Advantage Plan or Programs of All-inclusive Care for the Elderly (PACE) when you were first eligible for Medicare Part A at 65, and within the first year of joining, you decide you want to switch to Original Medicare. (Trial Right)

You dropped a Medigap policy to join a Medicare Advantage Plan (or to switch to a Medicare SELECT policy) for the first time, you’ve been in the plan less than a year, and you want to switch back. (Trial Right)

Your Medigap insurance company goes bankrupt and you lose your coverage, or your Medigap policy coverage otherwise ends through no fault of your own.

You leave a Medicare Advantage Plan or drop a Medigap policy because the company hasn't followed the rules, or it misled you."

[jojo]

There are a number cases when you can do that listed on guaranteed issue rights | Medicare.gov (https://www.medicare.gov/supplement-other-insurance/when-can-i-buy-medigap/guaranteed-issue-rights-scenarios.html#1360)


In general if you are not satisfied in the first year of using the Advantage plan you can switch back to a regular supplemental without having to pay an increased premium or take a physical.

There is a lot of info on the medicare.gov web site...

Some of the cases from that page:

"You joined a Medicare Advantage Plan or Programs of All-inclusive Care for the Elderly (PACE) when you were first eligible for Medicare Part A at 65, and within the first year of joining, you decide you want to switch to Original Medicare. (Trial Right)

You dropped a Medigap policy to join a Medicare Advantage Plan (or to switch to a Medicare SELECT policy) for the first time, you’ve been in the plan less than a year, and you want to switch back. (Trial Right)

Your Medigap insurance company goes bankrupt and you lose your coverage, or your Medigap policy coverage otherwise ends through no fault of your own.

You leave a Medicare Advantage Plan or drop a Medigap policy because the company hasn't followed the rules, or it misled you."

We were in an Advantage plan for two years and switched to a Supplement when the Villages Health would not accept our insurance. I am the OP and asked the question. We believe that if we go back to an Advantage plan then we are not guaranteed the acceptance into the supplement plan should we want to change back.

[Dan9871]

We believe that if we go back to an Advantage plan then we are not guaranteed the acceptance into the supplement plan should we want to change back.

You are probably right unless you fall into one of those guaranteed issue cases listed on the Medicare site.

[RGump]

CORRECT!! If the insurer becomes insolvent or if the plan is terminated from that carrier even though the insurance company isn't insolvent you most likely will have a guarantee issue to a supplement. However, if you just want to change from Advantage to supplement you will most likely be required to answer health questions.