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Can my current Medicare plan deny me coverage next year if I have high medical and prescription costs?

Category: Medicare Part D Enrollment
Updated: Nov, 05 2023


No.  Medicare Part D prescription drug plans and Medicare Advantage plans are “guaranteed issue” to all people living within the plan’s service area - with only very limited exceptions (such as Special Needs Plans).

And since 2021, guaranteed issue rights are extended to people with End-Stage Renal Disease (ESRD) who wish to join a Medicare Advantage plan.  (However, Medicare Advantage Special Needs Plans for dual-eligible people (D-SNPs) may still be allowed to exclude people with ESRD).

The Exception to Guaranteed Issue Rights: Medicare Advantage Special Needs Plans (SNPs)

If you apply for a Medicare Advantage Special Needs Plan (SNP), you must meet the "need" addressed by the plan (specific chronic condition(s) or financial need or residence in a long-term care facility).  For example, if you join a SNP designed for people with Diabetes - you must be diabetic.  If you are currently enrolled in a Medicare Advantage Special Needs Plan and you no longer meet the "need" requirement, you will be granted a Special Enrollment Period (SEP) to enroll in a different Medicare Advantage plan.

More about the exception to Dual- Eligible Medicare Advantage plan Special Needs Plan (D-SNP) guaranteed issue rights

As noted above, some Medicare Advantage SNPS are designed to work with the state Medicaid program and provide benefits for Dual-Eligible Medicaid/Medicare beneficiaries (D-SNPs) and these D-SNPs can deny enrollment to anyone suffering from ESRD - even though, since 2021, a person can join any Medicare Advantage plan even though they have ESRD. 

As the Centers for Medicare and Medicaid noted in the regulations dealing with ESRD Medicare Advantage plan enrollment: "States already have the ability in their state Medicaid agency contract with each D–SNP to restrict which dually-eligible individuals may enroll in the D–SNP.  If the state’s contract with a D–SNP excludes those with ESRD, the D–SNP may retain that exclusion in order to comply with the state contract required under § 422.107."  (https://www.govinfo.gov/content/pkg/FR-2020-06-02/pdf/2020-11342.pdf)


Bottom Line:  To be eligible for enrollment in a:

(1) Stand-alone Medicare Part D prescription drug plan (PDP), you must
  • be eligible for Medicare Part A and/or Medicare Part B and
  • live in the Medicare plan's service area (state or multi-state CMS region).
(2) Medicare Advantage Plan (MA or MAPD), you must
  • be enrolled in both Medicare Part A and Medicare Part B and
  • live in the Medicare plan's service area (county or ZIP Code area)
(3) Medicare Advantage Special Needs Plan (SNP), you
  • must be enrolled in both Medicare Part A and Medicare Part B,
  • must live in the Medicare plan's service area (county or ZIP Code area), and
  • must meet the special needs requirement (for example, you have a specific chronic condition or financial need).
    If you no longer meet the SNP requirement at any time, you will be asked to leave the plan, and will be provided a Special Enrollment Period to enroll in a different Medicare Advantage or Medicare Part D plan.
  • cannot suffer from kidney failure or End-Stage Renal Disease (or ESRD) if you wish to join some D-SNPs (Dual Medicare/Medicaid Special Needs Plans) - this will depend on the state where you live.



Related Question:  Can a Medicare Advantage plan deny me coverage because of my health or pre-existing conditions?

No – with a few exceptions.  In general, Medicare Advantage plans no longer ask any health-related questions.In order to join a Medicare Advantage plan, a Medicare beneficiary must only reside in the Medicare Advantage plan’s service area (county or ZIP code) and have both Medicare Part A and Part B coverage.  The exceptions:Medicare Advantage Special Needs Plans are designed for people with a specific chronic illness (C-SNPs).  C-SNPs can ensure that plan members suffer from the specific chronic condition for which the plan is designed (such as, diabetes, chronic heart failure, kidney failure or End-Stage Renal Disease (ESRD), HIV/AIDS, or dementia).

Historical note about ESRD and Medicare Advantage plan coverage:

From 2006 to 2020, a Medicare beneficiary was not allowed to enroll in a Medicare Advantage plan (MA or MAPD) if they suffered from kidney failure or End-Stage Renal Disease (or ESRD) - that ESRD rule was changed in 2021.  As was true before 2021, if you are already a member of a Medicare Advantage plan and then suffer End-Stage Renal Disease (ESRD), your Medicare Advantage plan cannot end your plan coverage based on this medical condition.





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    Statement required by Medicare:
    "We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options."
  • When enrolling in a Medicare Advantage plan, you must continue to pay your Medicare Part B premium.
  • Medicare beneficiaries with higher incomes may be required to pay both a Medicare Part B and Medicare Part D Income Related Monthly Adjustment Amount (IRMAA). Read more on IRMAA.
  • Medicare Advantage plans that include prescription drug coverage (MAPDs) are considered Medicare Part D plans and members with higher incomes may be subject to the Medicare Part D Income Related Monthly Adjustment Amount (IRMAA), just as members in stand-alone Part D plans. In certain situations, you can appeal IRMAA.
  • You must be enrolled in both Medicare Part A and Part B to enroll in a Medicare Advantage plan. Members may enroll in a Medicare Advantage plan only during specific times of the year. Contact the Medicare plan for more information.
  • If you are enrolled in a Medicare plan with Part D prescription drug coverage, you may be eligible for financial Extra Help to assist with the payment of your prescription drug premiums and drug purchases. To see if you qualify for Extra Help, call: 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048, 24 hours a day/ 7 days a week or consult www.medicare.gov; the Social Security Office at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. TTY users should call, 1-800-325-0778; or your state Medicaid Office.
  • Medicare evaluates plans based on a 5-Star rating system. Star Ratings are calculated each year and may change from one year to the next.
  • A Medicare Advantage Private Fee-for-Service plan (PFFS) is not a Medicare supplement plan. Providers who do not contract with the plan are not required to see you except in an emergency.
  • Disclaimer for Institutional Special Needs Plan (SNP): This plan is available to anyone with Medicare who meets the Skilled Nursing Facility (SNF) level of care and resides in a nursing home.
  • Disclaimer for Dual Eligible (Medicare/Medicaid) Special Needs Plan (SNP): This plan is available to anyone who has both Medical Assistance from the State and Medicare. Premiums, co-pays, co-insurance, and deductibles may vary based on the level of Extra Help you receive. Please contact the plan for further details.
  • Disclaimer for Chronic Condition Special Needs Plan (SNP): This plan is available to anyone with Medicare who has been diagnosed with the plan specific Chronic Condition.
  • Medicare MSA Plans combine a high deductible Medicare Advantage Plan and a trust or custodial savings account (as defined and/or approved by the IRS). The plan deposits money from Medicare into the account. You can use this money to pay for your health care costs, but only Medicare-covered expenses count toward your deductible. The amount deposited is usually less than your deductible amount, so you generally have to pay out-of-pocket before your coverage begins.
  • Medicare MSA Plans do not cover prescription drugs. If you join a Medicare MSA Plan, you can also join any separate (stand-alone) Medicare Part D prescription drug plan
  • There are additional restrictions to join an MSA plan, and enrollment is generally for a full calendar year unless you meet certain exceptions. Those who disenroll during the calendar year will owe a portion of the account deposit back to the plan. Contact the plan provider for additional information.
  • Medicare beneficiaries may enroll through the CMS Medicare Online Enrollment Center located at www.medicare.gov.
  • Medicare beneficiaries can file a complaint with the Centers for Medicare & Medicaid Services by calling 1-800-MEDICARE 24 hours a day/7 days or using the medicare.gov site. Beneficiaries can appoint a representative by submitting CMS Form-1696.