If your Medicare Advantage plan is cancelled, you have two options: Change to another Advantage plan or return to Medicare and get a Medicare Supplement – with no questions asked. This is called “guaranteed issue”, and it is an option that should be seriously considered.
Guaranteed issue means a person who is 70 years old (or 90) with health problems can get a Medicare Supplement plan with no questions asked. A person in this situation will pay the premium rate for his age, but will have no penalty because of his health condition. This is a great opportunity to get the full coverage offered by a Plan C or F Medicare Supplement - and people in this situation are encouraged to look seriously at this option.
A copy of the cancellation letter from the Medicare Advantage plan must be submitted with the Medicare Supplement application. The Medicare Advantage cancellation letter will say clearly that the person has “guaranteed issue” for a Medicare Supplement with any company. There are also boxes on the Medicare Supplement application to indicate that the applicant has guaranteed issue.
A number of Medicare Advantage plans will be cancelled for 2011 and letters have been sent to more than 2,000 people in southern Arizona informing them that they will have to change their Medicare plan by the end of December. Details of 2011 Medicare Advantage plans are not publicly available until October 3rd, so plan options cannot be discussed until that time.
For more information go to the Medicare Choices of Arizona.