Why Is Allstate Exiting the Medicare Supplement Market?
Allstate has announced a strategic decision to exit the Medicare Supplement (Medigap) market. This means they are no longer offering new Medigap policies and will begin scaling back support for current plans. The change reflects their shift in focus toward core insurance services.
What Does This Mean for Current Policyholders?
If you have a Medicare Supplement policy through Allstate (underwritten by American Heritage Life Insurance Company or National Health Insurance Company), here’s what you need to know:
✅ Your coverage won’t be canceled as long as you continue to pay your premiums. Medigap policies are guaranteed renewable.
⚠️ However, there may be some changes:
Higher Premiums: As Allstate phases out, premiums may rise due to a shrinking risk pool.
Customer Service Challenges: Expect possible delays or reduced support.
Limited Upgrade Options: You may find fewer options for plan changes within Allstate.
Will You Lose Your Coverage?
No, not immediately. Insurers are required to honor existing policies, and they must provide advanced notice before making any changes. You’ll have time to transition to another plan.
Can You Switch to a Different Medicare Supplement Plan?
Yes, but be aware:
You may need to go through medical underwriting unless you qualify for a Guaranteed Issue right.
You might be eligible for a Special Enrollment Period (SEP), which allows you to switch plans without being denied for pre-existing conditions.
What Should You Do Next?
Explore Your Options: Look at plans from other carriers.
Check Your Eligibility for a SEP: You may qualify due to Allstate’s market exit.
Talk to an Agent: A licensed insurance advisor can help you compare plans, avoid underwriting issues, and secure the most affordable coverage.
Final Thoughts
Allstate’s exit is a big change, but it doesn’t have to disrupt your Medicare coverage. With the right guidance, you can find a new plan that fits your needs—and keep your healthcare on track.
Need help? Contact us today. We’re here to support you every step of the way.
