Is there a contestable period for Medigap policies as with life insurance?

[goillini52]

If you are not replacing coverage there could be a waiting period .

I think there's only a couple of companies that have that. Seems like Humana's one of them.

 

[rmhaire]

I think there's only a couple of companies that have that. Seems like Humana's one of them.

Use to be bigger back in the day. Not so much anymore.

Same thing with waivers.

 

[mcd]

I had two different Aetna ACI med supps rescinded in 2017 after being in force for 6-12 months.

 

[axeman462]

I had two different Aetna ACI med supps rescinded in 2017 after being in force for 6-12 months.

Why were they rescinded?

 

[mcd]

Why were they rescinded?

One had CHF and the other had diabetes with neuropathy. Both were older ladies who say they didn't know they had these conditions. I started working with their daughters from that point on.

 

[vic120]

If you are not replacing coverage there could be a waiting period for pre-x.

Ive run into that in NY UHC, Humana 3 months has 6 months I don't know if that is state specific

 

[scagnt83]

No, just the general concern of potentially forgetting a prescription or minor procedure like dermatological skin tag removal.

You have answered my concerns. Thanks!

Contestability is more about omissions that would have caused decline in coverage. Not honest mistakes that would not have impacted approval.

Take life insurance for example, if they omitted something and got a slightly better rate because of it, all the insurer can do is deduct the difference in premium from the death benefit.

But if they omitted something that would have caused a decline, then it's an issue. Especially if deemed intentional.

 

[Newby]

Contestability is more about omissions that would have caused decline in coverage. Not honest mistakes that would not have impacted approval.

Take life insurance for example, if they omitted something and got a slightly better rate because of it, all the insurer can do is deduct the difference in premium from the death benefit.

But if they omitted something that would have caused a decline, then it's an issue. Especially if deemed intentional.

That is 100% incorrect. If they omitted something that caused them to be rated better than if they had disclosed it, the policy will be rescinded and they will have no coverage at all.

If it actually worked the way you described, why wouldn't everyone just lie and take their chances?

 

[rmhaire]

That is 100% incorrect. If they omitted something that caused them to be rated better than if they had disclosed it, the policy will be rescinded and they will have no coverage at all.

If it actually worked the way you described, why wouldn't everyone just lie and take their chances?

Actually he is correct. But so are you.

And that's because he's talking about ordinary companies and you're talking FE companies. There's a difference.

Ordinary companies don't normally post underwrite nor rescind. Some FE companies do it every day.

A good example would be smoker status. Most ordinary companies would recalculate and deduct the difference from the proceeds. Some FE carriers would try to rescind the whole thing.

 

[scagnt83]

That is 100% incorrect. If they omitted something that caused them to be rated better than if they had disclosed it, the policy will be rescinded and they will have no coverage at all.

If it actually worked the way you described, why wouldn't everyone just lie and take their chances?

I've seen it done. It is 100% correct for a Fully Underwritten Life Policy.