Can You Cancel Your Medicare Advantage Plan?

Michael T. Braden, August 30, 2024 MEDICARE PLANS

Can you leave a Medicare Advantage Plan and return to Original Medicare?

CAN YOU CANCEL YOUR MEDICARE ADVANTAGE PLAN?

Yes, you can cancel your Medicare Advantage plan. You need to qualify for one of the four Medicare Enrollment Periods during the Medicare Plan Year.

The short answer is yes; however, you can only do this during certain times of the year, and you'll need to navigate a few trap doors. But if you are truly unhappy or dissatisfied with your Medicare Advantage Plan, this Article is definitely what you need to read.

Leaving a Medicare Advantage plan can be difficult outside of an applicable enrollment period. But if your timing is right, canceling your Medicare Advantage plan can be seamless.

WHAT ARE THE TIMES DURING THE YEAR WHEN I CAN CANCEL MY MA/MAPD PLAN?

Medicare Advantage plans are typically annual contracts between the beneficiary and the Insurance company. These plans can be tough to cancel. Let's say you chose an MA or MAPD plan during your IEP (Initial Enrollment Period), then you decide that you and Medicare Part C are not a good match.  In that case, you can cancel your Medicare Advantage plan and return to  Original Medicare as long as you still have time left in your IEP Window. 

However, once your Initial Enrollment Period ends, you are locked into your plan until the next enrollment period,  which could be months away. Medicare Advantage enrollment periods include the Annual Enrollment Period, Medicare Advantage Open Enrollment  Period, and, in some instances, Special Enrollment Periods. 

Remember: there are different Enrollment Periods during the Year. Anyone can use the New Year OEP (OPEN ENROLLMENT PERIOD) and the Fall Annual Enrollment Period (AEP), and some Medicare Beneficiaries may qualify for a Special Enrollment Period (SEP) depending on their situation and where they live.  

Remember, no one can change or cancel their current Medicare Advantage (Medicare Part C) Plan unless it is during a valid Enrollment Period! 

The Medicare Advantage Open Enrollment Period is different from the Annual Enrollment Period, which runs from October 15 to December 7. The Medicare Open Enrollment Period (OEP) runs from January 1 through March 31.

 

CANCELLATIONS DURING A SEP(SPECIAL ENROLLMENT PERIOD)

Medicare beneficiaries may qualify for a Special Enrollment Period. Beneficiaries have access to Special Enrollment Periods when specific life events occur that require a change in coverage. 

Several events can entitle a beneficiary to a Special Enrollment Period,  including (but not limited to) moving out of your plan’s service area,  qualifying for Medicaid or a low-income subsidy, and loss of group coverage. 

If you qualify for a Special Enrollment Period, you can switch or cancel your Medicare Advantage plan. 

LIKE MEDICARE ADVANTAGE BUT WANT TO FIND A BETTER MEDICARE ADVANTAGE PLAN?

If you like the idea of a Medicare Advantage plan but find your plan’s coverage to be lacking, there are times when you can switch from one Medicare Advantage plan to another. You can do this during the  Annual Enrollment Period or the Medicare Advantage Open Enrollment  Period. 

HOW TO CHANGE PART C PLANS DURING THE FALL ANNUAL ENROLLMENT PERIOD

The Medicare Annual Enrollment Period (AEP) runs from October 15 through December 7 each fall. This enrollment period allows you to change from one Medicare  Advantage plan to another if you wish to do so. The plan you enroll in during this period will take effect on January 1 of the following year.

OPTIONS EVERYONE HAS FROM JANUARY 1ST - MARCH 30TH DURING THE MEDICARE OPEN ENROLLMENT PERIOD (OEP)

If you miss the Annual Enrollment Period or are dissatisfied with the plan you enrolled in during that period, the Medicare Advantage Open Enrollment Period begins shortly after. Each January, this enrollment period is available to those who already have a Medicare Advantage plan.  During this time, you may make one change to your Medicare Advantage plan. So, if you wish to switch Medicare Advantage plans, you may do so during this time. 

HERE IS HOW YOU CAN GO BACK TO ORIGINAL MEDICARE AFTER YOU LEAVE YOUR MEDICARE ADVANTAGE PLAN

Like switching from one Medicare Advantage plan to another, you can only switch from Medicare Advantage to Original Medicare during an enrollment period. The Annual Enrollment Period and the Medicare Advantage Open Enrollment Period allow you to change Medicare Advantage plans. These enrollment periods will also allow you to cancel your Medicare Advantage plan. 

When canceling your Medicare Advantage plan, you automatically revert to Original Medicare. This is because Medicare Advantage plans absorb your risk from Original Medicare. Thus, you will automatically receive Medicare Part A and Medicare Part B coverage when you cancel your Medicare Advantage plan. In some instances, you might be eligible to cancel your Medicare  Advantage plan and revert to Original Medicare without an enrollment period. However, you must qualify for one of two trial-right periods to do this. 

Suppose you enrolled in a Medicare Advantage plan when you first became eligible for Medicare. In this case, you can use a trial right to return to Original Medicare. Likewise, imagine you left a Medicare  Supplement plan to enroll in a Medicare Advantage plan for the first time. In that case, you can also use a trial right to return to Original  Medicare. Keep in mind that both trial rights are only valid within the first year of enrolling in a Medicare Advantage plan. 

CHANGING FROM HAVING A MEDICARE ADVANTAGE TO HAVING A MEDICARE SUPPLEMENT/MEDIGAP PLAN

Suppose you decide your Medicare Advantage plan’s network restrictions and high out-of-pocket costs are not for you. If so, you may be eligible to cancel your Medicare Advantage plan and enroll in a  Medicare Supplement plan. 

However, you can't switch directly from Medicare Advantage to Medicare Supplement. Once you revert from Medicare Advantage to  Original Medicare, you become eligible for a Medicare Supplement plan without a lapse in coverage. 

When you return to Original Medicare using a Special Enrollment  Period or a trial right, you automatically qualify for guaranteed issue rights to enroll. So, you can enroll in a Medicare Supplement plan without underwriting health questions. However, if you return to  Original Medicare during a typical enrollment period, you must answer health questions to enroll in a Medicare Supplement plan. 

VALID MEDICARE ENROLLMENT PERIODS AVAILABLE DURING A MEDICARE PLAN YEAR.

MOST COMMON QUESTIONS WE RECEIVE ABOUT CANCELING MEDICARE PART C PLANS

 

IF I DO NOT LIKE MY MEDICARE ADVANTAGE PLAN, CAN I  CANCEL IT AT ANY TIME?

No,  you cannot cancel your Medicare Advantage plan at any time. You must be enrolled in a valid enrollment period to cancel your Medicare Advantage plan.  During this time, you can cancel or switch your Medicare Advantage plan. 

IF I ENROLL IN A MEDICARE STAND-ALONE MEDICARE PRESCRIPTION DRUG PLAN, WILL THAT CANCEL MY MA/MAPD PLAN?

If you are eligible to enroll in a Medicare Part D plan, your Medicare  Advantage plan will terminate once your Medicare Part D plan becomes active. However, before enrolling in a Medicare Part D plan, you must verify that you are eligible to enroll in a Medicare Supplement plan to avoid any coverage lapses. 

IF I THINK AN AGENT MISREPRESENTED MY MEDICARE ADVANTAGE, CAN I CHANGE BACK TO TRADITIONAL MEDICARE?

If you are unhappy with your Medicare Advantage coverage, you can cancel your plan during a valid enrollment period. 

CAN I CANCEL MY MEDICARE ADVANTAGE PLAN IF I RELOCATE?

If you move to a new state where your Medicare Advantage plan does not provide coverage, you will be eligible for a Special Enrollment Period.  This window will allow you to change or cancel your Medicare Advantage plan.