The bill amends Section 27-18.2-3 of the General Laws concerning Medicare Supplement Insurance Policies to enhance consumer access and protections for individuals eligible for Medicare. Key provisions include the establishment of standards for policy provisions, which ensure that Rhode Island residents eligible for Medicare due to age (65 years or older) or due to disability or end-stage renal disease (if under age 65) are entitled to continuous enrollment rights for Medicare supplement ("Medigap") policies. Insurers are prohibited from using medical underwriting or any other method to deny Medigap coverage to eligible individuals applying under the provisions of this chapter. Premium rates for Medicare supplement policies are to be determined on a community-rated basis.

The bill mandates that the Office of the Health Insurance Commissioner (OHIC) conduct an annual review of premium rates for Medicare supplement policies and monitor compliance with the provisions of this chapter. OHIC may impose administrative penalties on insurers for violations, which may include fines, suspension of policy offerings, or corrective action orders. The bill also includes a provision that if any part of the section is deemed invalid, the remaining provisions will still be effective. The act is set to take effect on January 1, 2026.

Statutes affected:
5499: 27-18.2-3