MVP Health and the University of Vermont Health Network just announced that they are closing their joint UVM Health Advantage Medicare Advantage Plan in Vermont.
If you are currently enrolled in a UVM Health Advantage Plan in Vermont, this means that you could be left without full coverage next year if you don’t do anything about these changes.
That’s why in this article, we’ll go over everything you need to know about these developments, such as:
- why UVM Health Advantage is closing,
- who is affected by these changes,
- what happens if you don’t do anything, and
- a four-step checklist on how to switch to another plan.
By the end of this article, you should know everything you need to ensure a smooth transition into 2025.
Why is UVM Health Advantage Closing?
UVM Health Advantage in Vermont is one of several Medicare Advantage Plans shutting down in 2025. This comes after numerous regulation changes for Medicare Advantage Plans in 2025 by the CMS — including a decrease in funding and a lower maximum out-of-pocket limit for prescription drugs.
MVP Health Care stated they are closing the UVM Health Advantage Plan because Medicare Advantage is no longer sustainable in Vermont “given sharply increasing post-pandemic surges in care utilization and difficult regulatory changes on the horizon in 2025.”
Aside from UVM Health Advantage, WellCare also announced that it is leaving Medicare Advantage markets in Vermont. While other insurance companies such as Humana and Aetna have also announced they are closing Medicare Advantage Plans across the country.
Who is Affected By This Change?
All UVM Health Advantage enrollees in Vermont will be affected by this change. However, UVM Health Advantage enrollees in New York will not be affected.
If you are enrolled in another Medicare Advantage Plan in Vermont, this change shouldn’t affect you unless your plan explicitly states it is closing next year. Plans that are shutting down next year should send you a Non-Renewal Notice.
If you’d like to double-check, you can call your insurance company to inquire. You can also call us by clicking here, and we’ll check if your plan is going to close for you. As licensed insurance agents, we can help you understand your options — and it won’t cost you to work with us.
What Will Happen if You Don’t Switch to Another Plan?
If you’re enrolled in a UVM Health Advantage Plan in Vermont (or any Medicare Advantage Plan closing in 2025), you will typically lose your current coverage on January 1, 2025. That also means that you will automatically revert to Original Medicare, which generally has higher out-of-pocket costs compared to Medicare Advantage Plans.
Most insurance agents recommend enrolling in another plan by December 31. This way, you won’t have an interruption of coverage.
Checklist: 4 Steps to Enroll in a New Plan by 2025
Not sure how to switch to a new plan? Here are four steps you can take to ensure a smooth transition into a new plan for 2025:
Double Check if Your Plan is Closing
Enroll in a New Plan From October 15 to December 31
Learn About and Considering Using Your Guaranteed Issue Rights for a Medicare Supplement Plan
Contact a Licensed Insurance Agent to Help You Navigate This Confusing Times
Step #1: Double-Check if Your Plan is Closing
Remember, UVM Health Advantage Plans are only closing in Vermont. People enrolled in UVM Health Advantage Plans in New York won’t be affected by this change.
That’s why even if you hear that your insurance company is closing some of its Medicare Advantage Plans, make sure you double-check if your specific plan is affected by the changes.
Step #2: Enroll in a New Plan From October 15 to December 31
While you technically have until February 28 to enroll in a new Medicare Advantage Plan if your current plan is closing, most insurance agents recommend enrolling in a new plan by December 31. This is to ensure that your health insurance coverage is uninterrupted.
For most people, the Annual Enrollment Period (which runs from October 15 to December 7) is when they can enroll in a new Medicare Advantage Plan. Any plan changes made during the Annual Enrollment Period will take effect on January 1 of the following year.
However, if your current plan is shutting down next year, you also qualify for a Special Enrollment Period. This Special Enrollment Period starts on December 8 and ends on the last day of February of the following year.
If you enroll in a new plan during your Special Enrollment Period, your plan will generally take effect on the first day of the following month. This is why insurance agents recommend enrolling before your current coverage ends in January. If you delay past December 31, you may go several weeks without having full coverage.
Step #3: Learn About and Considering Using Your Guaranteed Issue Rights for a Medicare Supplement Plan
Aside from enrolling in another Medicare Advantage Plan, you should also consider enrolling in a Medicare Supplement Plan A, B, C, D, F, G, K, or L using your Guaranteed Issue Rights that you get from losing your Medicare Advantage coverage.
Having Guaranteed Issue Rights means you can enroll in a Medicare Supplement Plan without going through medical underwriting. This means that insurance companies selling the Medicare Supplement Plans mentioned above must take you in regardless of your health condition (something they are not obligated to do outside Guaranteed Issue Rights periods).
If your Medicare Advantage Plan is shutting down next year, you get Guaranteed Issue Rights starting 60 days before your current plan closes and ending 63 days after your current plan closes.
Step #4: Contact a Licensed Insurance Agent to Help You Navigate This Confusing Times
If you’re ever confused or overwhelmed, know you don’t have to go through this unusual period alone. There are professionals who will be happy to help you and stay unbiased and help you find the right plan fit for you.
Licensed insurance agents work with several different insurance companies. This way, they can search your area for several options, and help you find the right plan fit for you. This is different from sales agents, who only work for one company and may try to nudge you toward their employer even if it’s not in your best interest.
So, if you’re looking for help, you can contact us at +1 877-360-6565 (TTY: 771) and our team of licensed insurance agents will be happy to assist at no cost to you!
Conclusion – Don’t Worry Too Much!
Even though two major insurance companies are closing their Medicare Advantage Plans in Vermont, there’s no need to panic. There are still many other options available that you can switch to.
But while there’s no need to worry too much, you should also take action as soon as possible. Avoid delaying enrollment past December 31 to enjoy uninterrupted coverage, and follow the steps outlined above to have a smooth transition into a new plan for 2025.
And always remember, if you ever need help navigating this confusing time, reach out to our team of licensed insurance agents by clicking the button below: