Beneficiaries can opt out of their Medicare Supplement plan without consequences. True or False?

The statement is false because opting out of a Medicare Supplement plan can have consequences, particularly regarding coverage and potential penalties. Medicare Supplement plans are designed to cover costs that Original Medicare does not, and cancelling a plan may leave a beneficiary without necessary supplemental coverage.

Additionally, if a beneficiary decides to opt out of their Medicare Supplement plan and later wishes to re-enroll, they might face difficulties. Insurance companies may require medical underwriting, and beneficiaries could be denied coverage or charged higher premiums based on their health status. Furthermore, certain enrollment periods exist, and if a beneficiary opts out outside of these periods, they may not have guaranteed issue rights when seeking to obtain a new plan. Thus, understanding the implications of opting out is crucial for beneficiaries to ensure they do not inadvertently negate important health coverage.