AB 404

This bill provides that an individual covered by an individual medicare

supplement policy may cancel the policy and purchase a new policy with the same

or lesser benefits during the 30-day period beginning on his or her birthday. Under

the bill, if the individual elects to cancel the policy, the insurer must allow the

individual to continue coverage under the policy until the first day of the second

month following the month in which the cancellation occurs. The bill also provides

that an insurer providing medicare supplement policies may not deny coverage

under, condition the issuance of, or discriminate in the price of the replacement policy

based on the health status, claims experience, receipt of health care, or medical

condition of the individual.