What happens to premiums if an insured member cancels their Medicare Supplement plan within 30 days of coverage beginning?

When an insured member cancels their Medicare Supplement plan within 30 days of the coverage starting, the correct outcome is that they are refunded less any claims paid. This policy aligns with the typical practices surrounding Medicare Supplement plans, which often include a trial period or "free look" period. During this time, if a policyholder decides to cancel, they are entitled to a refund, but the amount refunded would typically deduct any claims that were processed.

This arrangement is designed to protect the insurance company from losses stemming from any benefits that were utilized during the initial coverage period. If a member has made claims within that 30-day window, it reflects the insurance company’s responsibility to reimburse for those services received. Thus, while the member is eligible for a refund, it will not be the total premium paid if claims have been made, leading to a refund that is net of those costs.