SB646: relative to Medicare supplemental insurance.

SB 646-FN - AS INTRODUCED

2020 SESSION

20-2973

01/04

SENATE BILL 646-FN

AN ACT relative to Medicare supplemental insurance.

SPONSORS: Sen. Sherman, Dist 24; Sen. Gray, Dist 6; Sen. Morgan, Dist 23; Sen. Chandley, Dist 11; Sen. Rosenwald, Dist 13; Sen. Cavanaugh, Dist 16; Sen. Fuller Clark, Dist 21; Sen. Soucy, Dist 18; Sen. Hennessey, Dist 5; Sen. Kahn, Dist 10; Sen. Bradley, Dist 3; Rep. Marsh, Carr. 8

COMMITTEE: Health and Human Services

ANALYSIS

This bill clarifies premiums and coverage under the law governing Medicare supplemental insurance.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2973

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty

AN ACT relative to Medicare supplemental insurance.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Sections; Medicare Supplemental Insurance; Premiums; Change in Coverage. Amend RSA 415-F by inserting after section 8 the following new sections:

415-F:9 Premiums. The issuer is prohibited from charging a Medicare eligible disabled member a premium greater than the over age 65 premium, once the disabled covered member is aged 65.

415-F:10 Change in Coverage. An issuer shall make available to each covered member the opportunity to purchase any Medicare supplement policy offered by the issuer, without medical underwriting, during the birth month of the member. This requirement shall exist regardless of whether the alternative policy has comparable or lesser benefits. The issuer shall notify the member at least 90 days prior to the opportunity to make a potential change in coverage. The effective date of the change in coverage shall be less than 60 days from the date the issuer receives notification that the member has selected alternative coverage.

2 Effective Date. This act shall take effect January 1, 2021.

LBAO

20-2973

1/3/20

SB 646-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to Medicare supplemental insurance.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

$0

Indeterminable

Indeterminable

Indeterminable

Expenditures

$0

$0

$0

$0

Funding Source:

[ ] General [ ] Education [ ] Highway [ ] Other

METHODOLOGY:

This bill prohibits insurers from charging Medicare-eligible disabled members aged 65 and over a higher rate than that charged for people eligible for Medicare due to their age. In addition, the bill requires insurers to make available to members the opportunity to purchase any Medical supplemental policy offered by the insurer, without underwriting, during the birth month of the member. The Insurance Department states that the first change may result in a small but insignificant decrease in insurance premium tax revenue, as effected individuals will likely realize a premium decrease. With respect to the second change, the Department expects insurers to respond by (a) increasing rates in response to upward pressure on claims, particularly for richer plans, and (b) consolidating plan offerings, as there would be too much risk to an insurer to be the only one offering a richer plan. These responses will likely have offsetting impacts on the insurance premium tax base. The Department expects any impacts to be relatively insignificant, as Medicare supplemental coverage is a small component of the overall tax base.

The Department of Health and Human Services states the bill will have no fiscal impact on that Department.

AGENCIES CONTACTED:

Departments of Insurance and Health and Human Services