Chapter 434 |
2025 -- H 5494 SUBSTITUTE A Enacted 07/02/2025 |
A N A C T |
RELATING TO INSURANCE -- MEDICARE SUPPLEMENT INSURANCE POLICIES |
Introduced By: Representatives Fogarty, Donovan, Hull, Spears, Carson, Bennett, Dawson, Noret, Handy, and Kazarian |
Date Introduced: February 13, 2025 |
It is enacted by the General Assembly as follows: |
SECTION 1. Sections 27-18.2-3 and 27-18.2-3.1 of the General Laws in Chapter 27-18.2 |
entitled "Medicare Supplement Insurance Policies" are hereby amended to read as follows: |
27-18.2-3. Standards for policy provisions. |
(a) No Medicare supplement insurance policy or certificate in force in the state shall contain |
benefits that duplicate benefits provided by Medicare. |
(b) Notwithstanding any other provision of law of this state, a Medicare supplement policy |
or certificate shall not exclude or limit benefits for loss incurred more than six (6) months from the |
effective date of coverage because it involved a preexisting condition. The policy or certificate shall |
not define a preexisting condition more restrictively than a condition for which medical advice was |
given or treatment was recommended by or received from a physician within six (6) months before |
the effective date of coverage. |
(c) The commissioner shall adopt reasonable regulations to establish specific standards for |
policy provisions of Medicare supplement policies and certificates. Those standards shall be in |
addition to and in accordance with the applicable laws of this state, including but not limited to §§ |
27-18-3(a) and 42-62-12 and regulations promulgated pursuant to those sections. No requirement |
of this title or chapter 62 of title 42 relating to minimum required policy benefits, other than the |
minimum standards contained in this chapter, shall apply to Medicare supplement policies and |
certificates. The standards may cover, but not be limited to: |
(1) Terms of renewability; |
(2) Initial and subsequent conditions of eligibility; |
(3) Nonduplication of coverage; |
(4) Probationary periods; |
(5) Benefit limitations, exceptions, and reductions; |
(6) Elimination periods; |
(7) Requirements for replacement; |
(8) Recurrent conditions; and |
(9) Definitions of terms. |
(d) The commissioner may adopt reasonable regulations that specify prohibited policy |
provisions not specifically authorized by statute, if, in the opinion of the commissioner, those |
provisions are unjust, unfair, or unfairly discriminatory to any person insured or proposed to be |
insured under a Medicare supplement policy or certificate. |
(e) The commissioner shall adopt reasonable regulations to establish minimum standards |
for premium rates, benefits, claims payment, marketing practices, and compensation arrangements |
and reporting practices for Medicare supplement policies and certificates. |
(f) The commissioner may adopt any reasonable regulations necessary to conform |
Medicare supplement policies and certificates to the requirements of federal law and regulations |
promulgated pursuant to federal law, including but not limited to: |
(1) Requiring refunds or credits if the policies or certificates do not meet loss ratio |
requirements; |
(2) Establishing a uniform methodology for calculating and reporting loss ratios; |
(3) Assuring public access to policies, premiums, and loss ratio information of issuers of |
Medicare supplement insurance; |
(4) Establishing a process for approving or disapproving policy forms and certificate forms |
and proposed premium increases; |
(5) Establishing a policy for holding public hearings prior to approval of premium increases |
that may include the applicant’s provision of notice of the proposed premium increase to all |
subscribers subject to the proposed increase, at least ten (10) days prior to the hearing; and |
(6) Establishing standards for Medicare select policies and certificates. |
(g) Each Medicare supplement Plan A policy or applicable certificate that an issuer |
currently, or at any time hereafter, makes available in this state shall be made available to any |
applicant under the age of sixty-five (65) who is eligible for Medicare due to a disability or end- |
stage renal disease, provided that the applicant submits their application during the first six (6) |
months immediately following the applicant’s initial eligibility for Medicare Part B, or alternate |
enrollment period as determined by the commissioner. The issuance or coverage of any Medicare |
supplement policy pursuant to this section shall not be conditioned on the medical or health status |
or receipt of health care by the applicant; and no insurer shall perform individual medical |
underwriting on any applicant in connection with the issuance of a policy pursuant to this |
subsection. |
(1) Any individual under the age of sixty-five (65) enrolled in a Medicare supplement Plan |
A by reason of disability or end-stage renal disease pursuant to subsection (g) of this section, shall |
receive a six-(6)month (6) open enrollment period for any policy or applicable certificate that an |
issuer currently makes available in this state beginning on the first day of the month in which the |
individual both attains the age of sixty-five (65) and remains enrolled in Medicare Parts A & B. |
(h) Individuals enrolled in Medicare Parts A and B applying for a Medicare supplement |
plan, regardless of age, shall receive guaranteed issue rights for standardized Medicare Supplement |
Plan A during an annual enrollment period of at least one month each calendar year, as established |
by the issuer. The issuance or coverage of any Medicare supplement policy pursuant to this section |
shall not be conditioned on the medical or health status or receipt of health care by the applicant; |
and no insurer shall perform individual medical underwriting in connection with the issuance of a |
policy pursuant to this subsection; provided: |
(1) That the applicant, having been enrolled in Medicare Part A and Part B, enrolled in a |
Medicare Advantage plan under Medicare Part C, and remains enrolled in such a plan when the |
Medicare supplement application is submitted. |
Each year, for the duration of the Medicare Annual Enrollment Period (AEP) for coverage |
with an effective date of January 1 of the following year, an individual enrolled in a Medicare |
supplement policy or Medicare Advantage plan who has been covered by any Medicare supplement |
policy(s) or Medicare Advantage plan(s) with no gap in coverage greater than ninety (90) days |
beginning from that individual's Medicare Initial Enrollment Period (IEP), shall be afforded |
guaranteed issue rights for any available Medicare supplement policy or applicable certificate that |
an issuer currently makes available in this state. |
(1) The issuance or coverage of any Medicare supplement policy pursuant to subsection |
(h) of this section shall not be conditioned on the medical or health status or receipt of health care |
by the applicant and no issuer shall perform individual medical underwriting on any applicant in |
connection with the issuance of a policy pursuant to this subsection. |
(2) For those individuals under the age of sixty-five (65) enrolled in a Medicare Advantage |
or Medicare supplement Plan A due to a disability, pursuant to subsection (g) of this section the |
individual shall be afforded guaranteed issue rights for every Medicare supplement Plan A policy |
or applicable certificate that an issuer, makes available in this state. Coverage shall be afforded |
pursuant to subsection (h)(1) of this section. |
27-18.2-3.1. Premium rate review. |
(a) An issuer shall not deliver or issue for delivery a policy or certificate to a resident of |
this state unless the policy form or certificate form has been filed with and approved by the |
commissioner in accordance with filing requirements and procedures prescribed by the |
commissioner. |
(b) The commissioner shall review the rate, rating formula, or rate manual filing and |
approve the filing, propose to the health insurance issuer how the filing can be amended and |
approved, or take other actions separately or in combination as the commissioner deems appropriate |
and as authorized by law. |
(1) For any rate filing subject to a public comment period, as determined by the |
commissioner, the issuer shall bear the reasonable expenses of the commissioner in connection |
with the filing including, but not limited to, any costs related to the compensation of actuaries or |
other experts appointed by the commissioner to assist in reviewing the issuers requested rates. |
(2) In the event the commissioner determines that a public hearing on a rate filing is |
necessary, in addition to subsection (b)(1) of this section, the issuer shall also bear the reasonable |
expenses associated with that public hearing, including without limitation costs relating to |
advertisements, legal counsel, expert fees, and stenographic reporting. |
(c) The commissioner may approve, disapprove, or modify the rates, rating formula, or |
rating manual filed by the issuer. |
(d) A health insurance rate, rating formula, or rate manual shall not be approved unless the |
commissioner determines that the health insurance issuer has demonstrated to the satisfaction of |
the commissioner that it is consistent with the proper conduct of the business of the issuer, and |
consistent with the interests of the public. In considering the interests of the public, the |
commissioner shall seek to ensure affordability and to minimize unreasonable disparities in access |
to coverage. |
(e) The office of the health insurance commissioner shall evaluate the impact of adopting |
a community rating structure for Medicare supplement plans and certificates. The commissioner |
shall further review the notification process for enrollment periods, frequency, and outreach by the |
insurer. On or before January 1, 2026, the office shall report to the general assembly on its findings |
and recommendations. |
SECTION 2. This act shall take effect upon passage. |
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LC001358/SUB A |
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