If a consumer applies for Medicare Supplement coverage outside of the open enrollment period, what may they face?

When a consumer applies for Medicare Supplement coverage outside of the open enrollment period, they may face higher rates or even denial of coverage. This situation arises because outside of the open enrollment window, insurance companies are allowed to assess an applicant's health status. This may include medical underwriting, where the insurer reviews the applicant's health history and existing conditions.

During the open enrollment period, individuals are guaranteed coverage regardless of their health situation, which is not the case afterward. As a result, consumers who apply outside this period may find that they are charged higher premiums due to their health risks or may be outright denied coverage based on their medical history. This potential for non-acceptance or increased cost highlights the importance of applying during the designated open enrollment window.