ACT NO. 13
Health Insurance; Medicare Supplemental Insurance Policies
This act requires the Department of Banking, Insurance, Securities, and Health Care Administration to notify the Department of Aging and Disabilities of any proposed rate increase for Medicare supplemental insurance policies within five days of receiving the rate increase request. Within five days after receiving notice the Department of Aging and Disabilities must inform the members of the Department's advisory board of the proposed increase. The Commissioner of the Department of Banking, Insurance, Securities, and Health Care Administration must hold a public hearing regarding the proposed rate increase if requested by 25 or more policyholders.
This act also requires community rating for Medicare supplemental insurance policies. The maximum deviation from the community rate may not exceed 80% between January 1, 1998, through December 31, 1998, and 40% between January 1, 1999, and December 31, 1999. AfterJanuary 1, 2000, no deviation from the community rate will be permitted, and medical underwriting and screening will be permitted.
Effective Date: July 1, 1997, except that the act shall apply to Medicare supplemental insurance policies as they are offered, issued or renewed on or after September 1, 1997.