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Canceling Medigap Insurance in Texas

You may want to cancel your Medigap plan because you want to enroll under a new plan or you intend to switch to a Medicare Advantage plan. You should contact your Medigap insurance provider if you want to cancel your Medigap plan. You can cancel your Medigap plan at any time.

You must be cautious about timing when canceling your Medigap plan entirely. You will be charged a late enrollment penalty when you enroll in a new Medicare drug plan if one of the following applies:

  • You canceled your entire Medigap policy because the prescription drug coverage was not creditable.

  • You wait 63 days or more for your new Medicare drug coverage to start.

If you become eligible for Texas Medicaid, you can apply for a two-year suspension of your Medigap benefits and premiums. You must inform your insurance company of your Medicaid eligibility within 90 days. The policy will automatically be restored if you no longer qualify for Medicaid.

If you lose Medicaid status in the next two years and wish to keep your Medigap policy, you must inform your insurance company within 90 days after losing Medicaid eligibility. If you want to reactivate your coverage after two years, you will have to reapply with the company.

Note that your Medigap policy is guaranteed renewable, so your insurance company cannot drop you except:

  • You stop paying your premiums for more than 90 days

  • You lied on your Medigap policy application

  • The insurance company goes bankrupt or insolvent

Generally, when trying to cancel your Medigap policy to avoid consequences and penalties like late enrollment fees, it is best to consult a licensed health insurance agent who knows the Medicare insurance market in Texas.

Can you Cancel Medigap Insurance?

Yes, you can cancel your Medigap insurance. Contact your Medigap insurance company if you intend to cancel your Medigap plan. Terminating your Medigap plan does not affect your Original Medicare benefits.

How Do I Cancel Medigap Insurance Plan?

To cancel your Medigap insurance policy in Texas, you can take the following steps:

  • Contact your Medigap insurance provider and inform them of your intention to cancel your policy.

  • Your insurance provider will provide you with the instructions and information that you need to complete the cancellation process. The process could involve a formal termination letter or notice, or you may need to fill out a disenrollment form.

  • Ensure you provide them with the date that you want the coverage to end. If you are moving to a new plan, schedule the date of termination to the date when your new plan will start.

You should think about your decision to cancel very well before you make it. Because while it may be easy to drop your Medicare Supplement plan, it may be difficult to get your plan back or to get a new plan.

If you cancel your plan, you may be unable to get it back or get another Medicare Supplement plan without medical underwriting. This means that the insurance carrier can use your medical history to decide on whether you can get a plan at all and, if you can, to determine your premium rate for the plan. However, if you are in your six-month Medicare Supplement open enrollment period or have guaranteed issue rights, you will not be subjected to medical underwriting. If you have guaranteed issue rights, an insurance company is required to sell you a Medicare Supplement coverage, cover all of your preexisting health issues, and not charge you more because of your health problems. You get guaranteed issue in special circumstances, like:

  • Your Medicare Advantage coverage exits Medicare, and you move to Original Medicare.

  • When your Medicare Advantage plan stops coverage in your location, and you move to Original Medicare.

  • You leave the service area of your Medicare Advantage plan and transfer to Original Medicare.

  • You had to cancel your Medicare Advantage or Medigap plan because the insurance company deceived you or committed fraud.

  • Your Medicare Supplement policy terminates due to circumstances beyond your control, such as the insurance company going bankrupt.

Can I Cancel Medigap Insurance Without Penalty?

Medigap does not have any disenrollment period in Texas, so there are no penalties or consequences for canceling. Hence, you can cancel your Medigap insurance at any time without any penalty.

How Long after Getting Medigap Insurance, Can I Cancel it Without Penalty?

You can cancel your Medigap insurance at any time without any penalty. Depending on your insurer, you might even get refunds on unused premiums after your cancellation.

When Should you Cancel Medigap Coverage?

There is no generally perfect time to cancel your Medigap plan. The most important thing to note when canceling is to make sure you are not left without coverage. Thus, schedule your cancellations to when your new coverage will take effect.

Do I Get a Refund of Unused Premiums if I Cancel Medigap Insurance Coverage?

It depends on the situation. Usually, when you cancel your Texas Medigap plan, it continues through the month you have already paid. Hence, if you pay your premiums every month and cancel at the beginning of the month, you may not get any refund. Insurers only offer to refund premiums if you did not use it at all that month. For example, if you buy coverage and pay for a year instead of every month, if you cancel at any time before the 12th month, you will most likely get a refund for the unused premiums.

However, before making a lump-sum payment, always ask your insurer about the possibility of getting a refund for unused premiums.

How Can I Reinstate Canceled Medigap Insurance?

Reinstating a canceled Medigap plan can be very difficult because the insurance company determines if they want you to re-enroll. You have to contact your insurance company within 60 days after the cancellation about your intention to reinstate your canceled policy. They will inform you if that is possible and the steps you should take. You can speak to an insurance agent in Texas about the process.