Existing federal law establishes the Medicare program, which is a public health insurance program for persons 65 years of age and older and specified persons with disabilities who are under 65 years of age. (42 U.S.C. §§ 1395 et seq.) Under existing federal regulations, a “Medicare supplemental policy” is a policy offered by a private insurer that is primarily designed to pay expenses not reimbursed under Medicare because of certain limitations under Medicare. (42 C.F.R. § 403.205) Existing federal law classifies Medicare supplemental policies based on the standardized package of benefits, which are prescribed by federal law, that each policy offers. Existing federal law also requires the issuance of a Medicare supplemental policy under certain circumstances, under which such a policy is considered to be guaranteed issue, but does not require all of the standardized benefit plans to be made available for guaranteed issue, with certain exceptions. (42 U.S.C. § 1395ss) This bill requires insurers that offer Medicare supplemental policies in this State to allow a person who is purchasing a Medicare supplemental policy where guaranteed issue requirements apply to purchase any standardized benefit plan that: (1) the insurer sells to new applicants in this State; and (2) the insurer is authorized under federal law to sell to the person. Under certain circumstances, existing law prohibits an insurer or other person or entity from varying the commission associated with the purchase of certain Medicare supplemental policies, paying differential commissions associated with the purchase of those Medicare supplemental policies or otherwise treating those particular Medicare supplemental policies differently for the purposes of commission. (NRS 687B.352) This bill applies this prohibition to the purchase of a Medicare supplemental policy that is classified as guaranteed issue.

Statutes affected:
As Introduced: 695B.320
BDR: 695B.320