SB 386

Generally, Medicare Part A provides coverage for inpatient care and Medicare

Part B provides coverage for outpatient care. Generally, a person is eligible for

Medicare when he or she reaches age 65 or if he or she is under age 65 and disabled.

Medicare supplement policies are private insurance policies that may be purchased

by persons who are enrolled in Medicare and that provide supplemental coverage to

that provided under Medicare, such as coverage for additional services, for the

portion of the cost of services not paid by Medicare, or for deductibles required under

Medicare.

This bill creates two special enrollment periods under Medicare supplement

policies. Under the bill, an insurer offering a Medicare supplement policy may not

deny coverage under the policy on the basis of health status, claims experience,

receipt of health care, medical condition, disability, or age to a person under age 65

who is eligible for Medicare Part B during the six-month period beginning on the

first day of the month in which the person first enrolls in Medicare Part B. The bill

also requires every insurer offering a Medicare supplement policy to provide an

annual open enrollment period during which no person who is covered under another

Medicare supplement policy and no person who is under age 65 and enrolled in

Medicare Part B may be denied coverage under the insurer's Medicare supplement

policy on the basis of a preexisting condition. In addition, the insurer may not impose

on any person who obtains coverage during the annual open enrollment period any

preexisting condition exclusion. The annual open enrollment period must begin and

end on the same dates as the federal Medicare annual open enrollment period, also

known as the annual election period.