Cancellation of Current Medicare Supplement Policy

Brian Sarkisian

New Member
5
This question has alway been on the back of my mind.

When replacing a current Medicare Supplement with a new Medicare Supplement from another carrier (let's assume the 1st of month effective date), when do you tell your clients it is safe to cancel their current Medicare Supplement?

1. When you get the approval from the new carrier showing the effective date

2. Or have them wait til the effective date of the new policy. (i.e.) the first of the month then cancel.
 
Once approved for the new med supp, have them contact their current carrier and notify them of their desire to cancel on the date the new one begins.
 
This question has alway been on the back of my mind.

When replacing a current Medicare Supplement with a new Medicare Supplement from another carrier (let's assume the 1st of month effective date), when do you tell your clients it is safe to cancel their current Medicare Supplement?

1. When you get the approval from the new carrier showing the effective date

2. Or have them wait til the effective date of the new policy. (i.e.) the first of the month then cancel.

If you are cutting it close as far as effective date of new policy and client won't be happy about possibly having to get a refund from current plan you can have them cancel bank draft only until you get final approval
 
Waiting until final approval is your best bet. If your consumer has to go through underwriting, they will be far more disappointed if their health changes before the effective date of the new policy. They can end up between a rock and a hard place if the old policy cancels out. It's a pain getting the refund, but it's much safer.
 
Verify approval, premium and eff date of new policy.

If paranoid, Have old policy send a bill in mail. Cancel bank draft. Use 30 day grace period and don't pay the bill. It will term for non payment.

Or, terminate old policy during last week of the month

Only issue with this method is if there are claims in that month (letting old policy term for non-payment), the old carrier could potentially receive the claim info and pay which is a PITA to unwind.
 
You write a med sup let’s say on may 5 th with a 6/1 effect date . How common it it that the person has a major health issue before 6/1 and you have to cancel the pending new sup ?
 
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