An Unexpected Discontinuation of Accendo Medicare Supplement Plan

Accendo Medicare Supplement plans, a subsidiary of CVS Health in partnership with Aetna Insurance Company, entered the market in March 2020, coinciding with the onset of the COVID-19 pandemic in the United States. However, due to the unprecedented challenges posed by the pandemic, the company has made a strategic decision to shift its focus away from Accendo products, affecting both new and existing policyholders.

Transition Timeline:

Starting in April 2023, Aetna and CVS have chosen to discontinue the application process for Accendo Medigap plans, effectively ending the availability of these plans for new enrollees. Before this discontinuation, Accendo Medigap plans were available in 42 states, including a wide range of states from Arizona to Wyoming. However, the discontinuation timeline is as follows:

1. April 28, 2023: Accendo Medicare Supplement plans have been discontinued in nine states, including Colorado, Georgia, Indiana, Iowa, Maryland, Nebraska, Rhode Island, Vermont, and Wisconsin.
2. May 29, 2023: Accendo plans in an additional six states will be discontinued, covering states like Arizona, Idaho, New Mexico, Oklahoma, Texas, and Wyoming.
3. July 28, 2023: Accendo plans in the following six states will be discontinued: New Jersey, North Carolina, North Dakota, Ohio, Oregon, and Pennsylvania.
4. September 28, 2023: Accendo plans in the following six states will be discontinued: Florida, Louisiana, Missouri, Montana, Nevada, and South Dakota.

After September 28, 2023, all states that previously offered Accendo Medigap policies will no longer accept new enrollee applications. It is important to note that Accendo will continue to accept new applications until the discontinuation date, for those in unaffected states, though their overarching objective is to phase out coverage nationwide.

Impact on Current Accendo Policyholders:

For those currently enrolled in Accendo Medigap coverage or who applied before the discontinuation, there will be no changes to your existing benefits. Your current Accendo Medigap coverage will remain the same. However, it’s important to be aware that switching to another Accendo Medigap plan will not be an option. If you wish to make changes to your coverage, you will need to transition to a different carrier.

It’s worth noting that retaining your current Accendo Medicare Supplement plan may lead to the possibility of higher-than-usual rate increases in the future. It is not uncommon to experience elevated annual rate increases when a plan is no longer available to new enrollees. This is primarily due to a reduced pool of plan participants, even though the plan continues to offer the same benefits.

Continued Availability of Aetna Plans in Discontinued States:

While Accendo will discontinue offering Medicare Supplement policies in the 15 states mentioned earlier, Aetna Medicare Supplement coverage will remain accessible in all states affected by the discontinuation of Accendo plans. If you reside in one of the affected states, there is a list of Aetna options available in your area.

Finding Medigap Coverage After Accendo Discontinuation:

For those contemplating a transition from your current Accendo plan to another Medigap carrier, it’s essential to assess your health status to ensure you meet underwriting health criteria. Keep in mind that there won’t be a Special Enrollment Period available in this scenario. Additionally, if you are new to Medicare and have initially chosen Accendo for your Medigap coverage, you may need to reevaluate the available carriers in your region.

For those contemplating a transition from your current Accendo plan to another Medigap carrier, it’s essential to assess your health status to ensure you meet underwriting health criteria. Keep in mind that there won’t be a Special Enrollment Period available in this scenario. Additionally, if you are new to Medicare and have initially chosen Accendo for your Medigap coverage, you may need to reevaluate the available carriers in your region.