Medicare HMO Out of Business

Answer:

Each year, managed care organizations are allowed to choose whether or not they will remain part of the Medicare+Choice program. In general, they must notify the Health Care Financing Administration by July 1 if they aren't going to renew their contracts. Your HMO's decision to withdraw at the end of this year has left you with two alternatives.

First, you can return to the original fee-for-service Medicare plan and purchase a supplemental Medigap policy, or you can enroll in another Medicare managed care plan or a private plan, if one is available in your area.

You have until the end of the year to decide. Your HMO must continue to provide coverage through December 31, unless you switch to another health plan before that date. If you haven't taken any action by the end of the year, you will automatically return to original Medicare on January 1.

You should have received a letter from your HMO explaining your rights and listing health plans that are still available in your area. Read it carefully, because the rules that apply to switching Medicare health plans are complex. If you need help deciding which option is best or need additional information, call the Medicare hotline at (800) MEDICARE.