This bill mandates that Medicare supplemental policies must cover pre-existing conditions, amending existing laws to ensure that individuals are not denied coverage based on their health history. Specifically, it removes the previous exclusion of Medicare supplement policies from the requirement to cover pre-existing conditions after a nine-month enrollment period. The bill introduces new definitions for "Medicare Advantage Plan" and "preexisting condition," clarifying that a preexisting condition is one for which medical advice or treatment was received within six months prior to the coverage's effective date. Additionally, it establishes that no Medicare supplement policy can exclude or limit benefits due to preexisting conditions.

Furthermore, the bill includes provisions for full disclosure in the sale of Medicare supplement policies and Medicare Advantage Plans, requiring that applicants receive an outline of coverage at the time of application. It also stipulates that all Medicare supplement policies must include a notice of a free examination period, allowing applicants to return the policy within 30 days for a full refund if unsatisfied. The legislation prohibits pricing based on medical underwriting for Medicare supplement plans and mandates that insurers offering Medicare Advantage Plans must also provide Medicare Supplement or Medigap Plans. The act will take effect 60 days after its passage.

Statutes affected:
Introduced: 415-A:5, 451-F:1, 415-F:3, 415-F:5, 415-F:6
HB774 text: 415-A:5, 451-F:1, 415-F:3, 415-F:5, 415-F:6