Medigap Trust / Master Contract

somarco

GA Medicare Expert
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Atlanta
There are a few carriers issuing Medigap plans via Trust / Master Contract. Covered participants receive a certificate of coverage/insurance, not a policy.

My encounter with the Trust / Master Contract format dates back to MET days. When the Trust was dissolved coverage ended.

Would the same be true for Medicare supplement carriers that utilize a Trust?

It would seem to me that loss of coverage due to termination of the Trust does not grant guarantee issue rights to transition to a new plan under current CMS rules.

Any comment or differing opinion?

Which Medigap carriers currently use a Trust and which ones used a Trust in the past?
 
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It would seem to me that loss of coverage due to termination of the Trust does not grant guarantee issue rights to transition to a new plan under current CMS rules.

This is interesting, I had always thought there was protection if Medigap cov ends you GIO to any supp. Its been a long time since I remember reading that, What is different about a trust that this protection does not apply?
 
There are a few carriers issuing Medigap plans via Trust / Master Contract. Covered participants receive a certificate of coverage/insurance, not a policy.

My encounter with the Trust / Master Contract format dates back to MET days. When the Trust was dissolved coverage ended.

Would the same be true for Medicare supplement carriers that utilize a Trust?

It would seem to me that loss of coverage due to termination of the Trust does not grant guarantee issue rights to transition to a new plan under current CMS rules.

Any comment or differing opinion?

Which Medigap carriers currently use a Trust and which ones used a Trust in the past?
I'm not sure about a trust, but I know that MOFO is the 1st one I saw issue a master certificate...probably 25 years ago. Heartland was offering a Super Saver master certificate a few years ago. It was like pulling teeth, but I finally got Bill to admit to me that Heartland could cancel that certificate anytime they wanted....NO THANKS!!! I believe that would be a GI situation for anybody losing their coverage on a canceled certificate. :yes:
 
This is interesting, I had always thought there was protection if Medigap cov ends you GIO to any supp. Its been a long time since I remember reading that, What is different about a trust that this protection does not apply?

The GI option comes into play when the carrier goes BK. Carriers can and do jump out of the business all the time.

Folks who bought AFLAC were not afforded GI. Those who bought plan N (later discontinued by some carriers) did not have GI options.

The Trust can also be discontinued but not necessarily bankrupt. Even if it did go belly up, and several have in the past, since the ISSUING carrier is not BK there is no GI.

I'm not sure about a trust, but I know that MOFO is the 1st one I saw issue a master certificate...probably 25 years ago. Heartland was offering a Super Saver master certificate a few years ago. It was like pulling teeth, but I finally got Bill to admit to me that Heartland could cancel that certificate anytime they wanted....NO THANKS!!! I believe that would be a GI situation for anybody losing their coverage on a canceled certificate. :yes:

I would like to know for certain if losing coverage because a trust was dissolved creates a GI situation. I don't think it does but maybe someone like Last Dollar can shed some light on this topic.
 
The GI option comes into play when the carrier goes BK. Carriers can and do jump out of the business all the time.

Folks who bought AFLAC were not afforded GI. Those who bought plan N (later discontinued by some carriers) did not have GI options.

The Trust can also be discontinued but not necessarily bankrupt. Even if it did go belly up, and several have in the past, since the ISSUING carrier is not BK there is no GI.



I would like to know for certain if losing coverage because a trust was dissolved creates a GI situation. I don't think it does but maybe someone like Last Dollar can shed some light on this topic.

That is insane, I mean I would think the law is to protect people from losing cov, not of their own fault. Seems Illogical for it not to cover them in this situation

However, I do know much time the Govt is illogical So I can see it, Just baffles me though
 
That is insane, I mean I would think the law is to protect people from losing cov, not of their own fault. Seems Illogical for it not to cover them in this situation

However, I do know much time the Govt is illogical So I can see it, Just baffles me though

I believe you asked and answered your own question . . .

https://www.medicare.gov/find-a-plan/staticpages/learn/rights-and-protections.aspx

6 - Your Medigap insurance company goes bankrupt and you lose your coverage, or your Medigap policy coverage otherwise ends through no fault of your own.

I suppose it is possible, just haven't encountered a situation where someone lost coverage other than via BK. If a carrier withdraws from the market, or withdraws a plan, coverage continues as long as the premium is paid.

Picking nits, coverage issued through a Trust is a certificate, not a policy. Perhaps #6 above would apply if someone lost coverage through a certificate. Can't say.
 
The GI option comes into play when the carrier goes BK. Carriers can and do jump out of the business all the time.

Folks who bought AFLAC were not afforded GI. Those who bought plan N (later discontinued by some carriers) did not have GI options.

The Trust can also be discontinued but not necessarily bankrupt. Even if it did go belly up, and several have in the past, since the ISSUING carrier is not BK there is no GI.



I would like to know for certain if losing coverage because a trust was dissolved creates a GI situation. I don't think it does but maybe someone like Last Dollar can shed some light on this topic.
Bob, this is from Sentinel Security's UW Guide under GI Situation. "Client's Medigap insurance company goes bankrupt and the client loses coverage, or clent's Medigap policy/certificate coverage otherwise ends through no fault of client."

As far as AFLUCK goes, they didn't cancel anything(except our contracts), they just stopped issuing new business. I finally was able to move the last client I had with them a couple of months ago. Nice to be making money off of him again. :yes:
 

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