Do You Have to Renew Medicare Supplement Every Year?

Medicare Supplement plans, often called Medigap, help cover healthcare costs that Original Medicare (Parts A and B) does not. Unlike some other insurance policies, Medigap plans generally do not require a yearly manual renewal. They continue as long as you meet the policy’s terms, primarily by paying your premiums.

The Nature of Medicare Supplement Plans and Their Duration

Medicare Supplement plans are sold by private insurance companies to help cover out-of-pocket expenses associated with Original Medicare, such as copayments, coinsurance, and deductibles. If you have Original Medicare and a Medigap policy, both Medicare and your Medigap plan will pay their respective shares of covered healthcare costs.

Medigap policies have a “guaranteed renewable” status. This means that the insurance company cannot cancel your policy, even if your health status changes or worsens, as long as you continue to pay your premiums on time and do not misrepresent information on your application.

Automatic Renewal of Medicare Supplement Plans

Medigap policies renew automatically each year, eliminating the need for policyholders to take specific action for re-enrollment. This automatic continuation is contingent upon consistent monthly premium payments. Your coverage will continue from one year to the next as long as your premium payments are up to date.

Timely premium payments are essential to maintain Medigap coverage. If a premium payment is missed, the insurance company can terminate the policy. While many insurers offer a grace period, typically around 30 days, failure to pay within this period can lead to policy lapse. If Part B coverage is canceled due to non-payment, any associated Medigap policy will also be canceled, as having Part B is a condition of Medigap enrollment.

Should a Medigap policy lapse due to non-payment, reacquiring coverage can become more challenging, especially outside of specific enrollment windows. The insurance company might then use medical underwriting, assessing your health history to decide whether to sell you a new policy and at what cost, or even deny coverage. Consistent premium payments avoid gaps in coverage or higher future costs.

An insurance company might not renew a Medigap policy if the policyholder provided untrue information on their application, or if the insurance company goes out of business. Medigap policies purchased before 1992 in certain states might not be guaranteed renewable, but this is an exception to the general rule.

Switching Medicare Supplement Plans

While Medigap plans automatically renew, policyholders may switch plans to find different coverage or lower premiums. The most advantageous time to enroll in or switch a Medigap policy is during your Medigap Open Enrollment Period. This is a one-time, six-month period that begins the month you turn 65 or older and are enrolled in Medicare Part B.

During this Medigap Open Enrollment Period, insurance companies must sell you any Medigap policy they offer in your state at the best available rate, regardless of your health status. They cannot deny you coverage or charge you more due to pre-existing health problems. If you miss this period, companies can refuse to sell you a policy or may impose higher premiums based on your health.

Even outside the initial Open Enrollment Period, “Guaranteed Issue Rights” allow individuals to purchase a Medigap policy without medical underwriting. These rights apply when certain events occur, such as involuntarily losing existing health coverage. Examples include losing employer-sponsored group health coverage that supplemented Medicare, or if your Medicare Advantage plan leaves the Medicare program or stops providing coverage in your area.

Another qualifying event for Guaranteed Issue Rights is a “trial right” if you enroll in a Medicare Advantage plan for the first time and decide to switch back to Original Medicare within the first 12 months. When a Guaranteed Issue Right applies, you have a 63-day window to apply for a Medigap policy. During this time, insurers must sell you a Medigap policy, cover all pre-existing conditions, and cannot charge more due to health issues. The specific Medigap plans available under Guaranteed Issue Rights may be limited to certain plan types, depending on when you became eligible for Medicare.