Did you just open your mail to find a Non-Renewal Notice?
If so, you might be anxiously wondering what this is about, how it affects your Medicare coverage, and what you can do about it.
Many insurance companies (such as Aetna, Humana, BCBS, and others) are expected to close their Medicare Advantage Plans next year—which is why these insurance companies are sending out these Non-Renewal Notices.
In this article, we’ll look at what Non-Renewal Notices are, a step-by-step guide on what you can do if you receive this notice, what will happen if you ignore the notice, and some tips on how you can get help.
What Are Plan Non-Renewal Notices?
Whenever an insurance company discontinues a Medicare Advantage Plan, they are required to inform everyone enrolled in that plan of the change. Insurance companies should send their beneficiaries a Non-Renewal Notice before September 30, and if you receive a Non-Renewal Notice, your Medicare Advantage Plan should be closing on January 1 of the following year.
There are several exceptions to this, but that is generally how things should go when an insurance company is discontinuing a Medicare Advantage Plan in a certain area.
What To Do If You Receive a Non-Renewal Notice: 3 Steps to Take
If you’ve just received a Non-Renewal Notice, you can follow these three steps to transfer to another plan in your area.
Step #1: Search for a New Plan During the Annual Enrollment Period
Every year from October 15 to December 7, you can switch to a different Medicare Advantage Plan or Medicare Part D prescription drug plan. This period is known as the Annual Enrollment Period (AEP), and any plan changes you make during this period will take effect on January 1 of the following year.
If your Medicare Advantage plan is closing, this is the time to shop for another plan that fits your needs. You can switch to any Medicare Advantage Plan available in your area.
Step #2: Consider a Medicare Supplement Plan
Aside from switching to another Medicare Advantage Plan, you can also choose to enroll in a Medicare Supplement Plan instead.
Usually, if you try to enroll in a Medicare Supplement Plan more than six months after your Medicare Part B coverage starts, you may have to go through medical underwriting. Medical underwriting is a process where the insurance company asks you several health-related questions to see if you qualify for their plan. Insurance companies can deny your application if you don’t pass their criteria, or they may charge you higher premiums.
However, if you are losing your Medicare Advantage Plan coverage because your plan is leaving the Medicare Market, you’re entitled to guaranteed issue rights for Medicare Supplement A, B, C, D, F, G, K, and L. During the guaranteed issue rights period—which starts 60 days before your Medicare Advantage coverage ends, and ends 63 days after your Medicare Advantage coverage ends—you can typically enroll in these plans without undergoing medical underwriting.
Note: Keep in mind that Medicare Supplement Plans don’t have built-in prescription drug coverage. If you are currently getting your prescription drug coverage from your closing Medicare Advantage Plan, and you intend to switch to a Medicare Supplement Plan, you may want to consider also enrolling in a standalone Medicare Part D prescription drug plan during the Annual Enrollment Period.
Step #3: Contact a Licensed Insurance Agent for Help
If you’re confused, you can contact a licensed insurance agent to help you make sense of all the moving parts, and to help you land on the right plan fit for you.
Licensed insurance agents work with several different insurance companies in your area, so they can provide you with unbiased help finding the right plan for you. You may ask them any questions you have, and their job is to help you understand everything that is going on with your coverage, and help you compare all your options.
Licensed insurance agents are paid by insurance, so you may get their services at no cost to you.
Note: looking for an unbiased licensed insurance agent? Call or text us at +1 877-360-6565 (TTY: 771) and our team of agents would be glad to assist you!
What Happens if You Don’t Enroll in Another Plan?
If you’ve received a Non-Renewal Notice and you don’t enroll in a new plan before the year ends, you will typically lose your coverage on January 1 of the following year. During this time, your coverage will be reverted back to Original Medicare, and you may be at higher out-of-pocket risk.
If you want to enroll in a new Medicare Advantage Plan, you may also have to wait for the next Annual Enrollment Period (October 15 to December 7) before you can do so.
Generally speaking, if your plan is shutting down in 2025, you can technically switch plans until February 28. However, if you wait this long, you would be without full coverage from January 1 to February 28. That’s why most insurance agents recommend you get new coverage by December 31.
If your insurance company is not renewing your Medicare Advantage Plan, you also qualify for a Special Enrollment Period. This period runs from December 8 to the last day of February of the following year. During this time, you may enroll in another Medicare Advantage Plan available in your area.
Conclusion – Don’t Wait, Take Action!
Receiving a Non-Renewal Notice can be stressful, especially if you’re not sure what you can do about it. However, if you stay calm and follow the three steps above, you should be able to enroll in a new plan that’s the right fit for you without problems.
However, if you’re looking for professional help and guidance in finding the right plan for you, don’t hesitate to reach out to our team at +1 877-360-6565 (TTY: 771), and we’d be more than happy to assist you!