Can I Drop My Medicare Advantage Plan and Get a Medicare Supplement? If so, When and How?
Dropping a Medicare Advantage plan and returning to “Original Medicare” Parts A and B with a Medicare Supplement “Medigap” is possible, but there are some caveats you need to be aware of.
Here are some important considerations if you want to drop your Medicare Advantage plan (Part C), and return to “Original Medicare” with a Medicare Supplement and Part D Prescription Drug Plan.
"Disenrolling" From a Medicare Advantage Plan
You can only “disenroll” from a Medicare Advantage plan at certain times of the year unless you have a valid reason to disenroll mid-year.
Generally Speaking, you can disenroll from a Medicare Advantage plan during the Annual Election Period (AEP), which runs from October 15th until December 7th each year. Disenrolling during this period means your Medicare Advantage plan will end December 31st of that year.
Another opportunity to disenroll from a Medicare Advantage plan occurs during the Medicare Advantage Open Enrollment Period (OEP) which runs from January 1st until March 31st each year. During this time-frame, you can disenroll from a Medicare Advantage plan and return to Original Medicare and a Part D Prescription Drug Plan.
Medicare Supplement Enrollment May Not Be Guaranteed
If you plan to disenroll from a Medicare Advantage plan, it is essential to keep in mind that obtaining a Medicare Supplement (Medigap) may not be guaranteed.
Medicare Supplement insurance carriers can apply medical “underwriting” and can deny people who apply for a Medicare Supplement plan outside of certain limited Enrollment Periods and circumstances.
A Correct Sequence is Essential
If you're intending to drop your Medicare Advantage plan because you want a Medicare Supplement, it’s crucial to know if you have a “Guaranteed Issue” for the supplement or if you can pass medical underwriting.
Enrolling in a Part D Prescription Drug Plan, before you get the Medicare Supplement approval will cancel out your Medicare Advantage plan and may leave you with no maximum out-of-pocket cap on your medical costs.
I recommend that you apply early for the Medicare Supplement and make sure you’re approved before enrolling in a Part D Prescription Drug Plan. Enrolling in the Part D Drug Plan will automatically bump-out and cancel your Medicare Advantage plan so you need to get the Medicare Supplement approved first.
Doing things in the proper sequence is important, and with the Medicare Supplement plan approved, you will now have Original Medicare Parts A and B, a Medicare Supplement (like a Plan G) and a stand-alone Part D Prescription Drug Plan.
It is very helpful to enlist the help of an experienced independent broker to assist you in this process and to make sure everything is done properly.
There are no fees or extra charges to work with an independent insurance agent!
