Under what condition can a Medicare supplement policy be canceled by the insurer?

A Medicare supplement policy can be canceled by the insurer primarily for nonpayment. This means that if the policyholder fails to pay their premiums within the specified time frame, the insurer has the right to terminate the policy. Nonpayment is a clear contractual breach and serves as a legitimate reason for an insurer to cancel coverage, as it directly affects the insurer’s ability to uphold the terms of the agreement.

While misrepresentation could lead to cancellation, it usually pertains to the unintentional or intentional provision of false information at the time of application. It is less common for insurers to cancel policies solely on these grounds, particularly if the policy is in force and has been for some time. A change of residency generally doesn’t justify cancellation unless the policy specifically states otherwise. Similarly, a decline in health does not automatically permit insurers to cancel a policy that has already been issued, as Medicare supplement plans are intended to provide coverage regardless of the health status once issued.

Thus, nonpayment stands out as the clear and straightforward reason under which an insurer can cancel a Medicare supplement policy, emphasizing the importance of timely premium payments to maintain coverage.