Senate File 258 - Introduced SENATE FILE 258 BY KETTERING A BILL FOR An Act relating to issuance of policies of individual accident 1 and sickness insurance or subscriber contracts that provide 2 Medicare supplement coverage and including applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2330XS (3) 84 av/nh

S.F. 258 Section 1. NEW SECTION . 514D.3A Medicare supplement 1 insurance —— issuance. 2 1. The commissioner shall issue rules with respect to 3 policies of individual accident and sickness insurance or 4 subscriber contracts that provide Medicare supplement coverage, 5 to require an insurer to issue such a policy or contract to 6 an individual, upon application, without requiring additional 7 underwriting, if all of the following conditions are met: 8 a. At the time of application, the individual is covered 9 by an in-force policy or contract that provides Medicare 10 supplement coverage at one of the standard levels of coverage 11 approved by the centers for Medicare and Medicaid services of 12 the United States department of health and human services. 13 b. The individual applies to the insurer for a new policy 14 or contract that provides Medicare supplement coverage within 15 thirty days prior to or succeeding the anniversary date of the 16 individual’s in-force policy or contract that provides Medicare 17 supplement coverage. 18 c. The Medicare supplement coverage applied for provides 19 the same level of coverage as the applicant had in force at the 20 time of application. 21 2. A policy of individual accident and sickness insurance or 22 subscriber contract that provides Medicare supplement coverage 23 issued pursuant to subsection 1 is not required to be issued 24 at the same premium rate as the policy or contract providing 25 such coverage that the individual had in force at the time of 26 application for the new policy or contract. 27 Sec. 2. APPLICABILITY. This Act applies to policies of 28 individual accident and sickness insurance or subscriber 29 contracts that provide Medicare supplement coverage, that are 30 delivered, issued for delivery, continued, or renewed in this 31 state on or after January 1, 2012. 32 EXPLANATION 33 This bill requires the commissioner of insurance to issue 34 rules with respect to policies of individual accident and 35 -1- LSB 2330XS (3) 84 av/nh 1/ 2

S.F. 258 sickness insurance or subscriber contracts that provide 1 Medicare supplement coverage, that require an insurer to issue 2 such a policy or contract to an individual, upon application, 3 without requiring additional underwriting if at the time of 4 application the individual is covered by such an in-force 5 policy or contract that provides Medicare supplement coverage 6 at one of the standard levels of coverage approved by the 7 centers for Medicare and Medicaid services of the United States 8 department of health and human services; the individual applies 9 for a new policy or contract within 30 days before or after the 10 anniversary date of the applicant’s current Medicare supplement 11 insurance policy or contract; and the coverage applied for is 12 at the same level as the coverage the applicant has at the time 13 of application. 14 A new policy or contract issued pursuant to the bill’s 15 provisions is not required to charge the same premium rate for 16 the coverage that the applicant had at the time of application. 17 The bill is applicable to such policies or contracts that 18 provide Medicare supplement coverage that are delivered, issued 19 for delivery, continued, or renewed in this state on or after 20 January 1, 2012. 21 -2- LSB 2330XS (3) 84 av/nh 2/ 2