What does “guaranteed issue” mean in the context of Medicare Supplement plans?

In the context of Medicare Supplement plans, “guaranteed issue” refers to the right of individuals to enroll in a Medicare Supplement (Medigap) policy without undergoing medical underwriting. This means that insurance companies cannot deny coverage based on a person's health status, medical history, or pre-existing conditions during specified enrollment periods.

Guaranteed issue is a critical protection, especially for individuals who may have health issues that could otherwise make them ineligible for coverage or result in significantly higher premiums. It generally applies during certain times, such as when a person is new to Medicare, loses other health coverage, or during specific open enrollment periods. This enhances access to necessary supplemental coverage for seniors, providing them with more security regarding healthcare expenses.

Other options relate to different aspects of insurance plans. While some may pertain to the features of availability or pricing, they do not accurately capture the essence of what “guaranteed issue” means. Therefore, the correct interpretation highlights its importance in ensuring individuals can secure Medicare Supplement coverage without additional barriers.