Which statement is true regarding replacement of Medicare Supplement coverage?

• A. Replacement of existing coverage is allowed under marketing regulations.
• B. Replacement of existing coverage is strictly prohibited.
• C. Replacement requires a medical examination for the new policy.
• D. Replacement is allowed only with identical benefits.

Answer: (A)

Replacement of Medicare Supplement coverage is allowed under marketing regulations. These rules exist to protect consumers who switch policies, requiring disclosures and a clear comparison of benefits and costs so you understand what you’re gaining or losing by replacing coverage. You’re not prohibited from replacing Medigap policies, and the new policy doesn’t have to offer identical benefits to the old one. Whether a medical exam is needed depends on underwriting rules for the new policy and the circumstances of the replacement, not on the fact that a replacement is taking place.