For what reasons may applicants who do not qualify for open enrollment or guaranteed issue be denied coverage?

The correct answer highlights a specific circumstance where applicants may be denied coverage when applying for Medicare Supplement Insurance. If an applicant has been hospitalized as an inpatient within the past 90 days, this recent hospitalization can indicate a significant health risk. Insurance companies often use recent hospitalizations as a criterion to assess risk levels and can deny coverage based on the potential costs associated with covering a person with a recent severe health issue.

The rationale for this is that insurers aim to balance their risk pools; recent hospitalizations may suggest ongoing or serious health problems that could lead to high claims costs shortly after enrollment. Thus, this timeframe of 90 days serves as a critical benchmark in the underwriting process for insurers, and applicants in this situation may not qualify for coverage outside of open enrollment or guaranteed issue rights.

Understanding this policy is vital for applicants needing to navigate their options when managing their Medicare Supplement Insurance, particularly understanding when they may be at risk of denial based on their health status.