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HF2335 (Legislative Session 94 (2025-2026))

Preexisting condition limitations in Medicare supplement insurance policies modified.

Related bill: SF2498

AI Generated Summary

This bill modifies regulations regarding Medicare supplement insurance policies in Minnesota. It primarily focuses on eliminating or modifying preexisting condition limitations, ensuring policy renewability, and expanding guaranteed issue provisions. Key elements of the bill include:

  1. Prohibition on Discrimination Based on Preexisting Conditions:

    • Insurance carriers cannot impose preexisting condition limitations, deny coverage, or adjust pricing based on health status, claims history, medical condition, or age during specified enrollment periods.

  2. Suspension and Reinstatement of Policies:

    • Policyholders who become eligible for medical assistance (Medicaid) can suspend their Medicare supplement coverage for up to 24 months.
    • If they lose Medicaid eligibility, they can reinstate their Medicare supplement policy without additional waiting periods or restrictions.

  3. Guaranteed Issue Provisions:

    • Expands protections for individuals transitioning out of Medicare Advantage plans, Medicaid, or other coverage scenarios.
    • Specifies various scenarios where individuals are entitled to purchase a Medicare supplement plan without denial or penalties (e.g., disenrollment from a Medicare Advantage plan within the first year).

  4. Policy Requirements and Prohibited Provisions:

    • Updates mandatory features in Medicare supplement policies to ensure alignment with federal Medicare benefits.
    • Prohibits exclusions and waiting periods that are more restrictive than those of Medicare.

  5. Consumer Protections and Notices:

    • Requires detailed notices informing consumers of their rights when replacing an existing Medicare supplement policy.
    • Mandates clear disclosures regarding policy changes and potential impacts on benefits.

  6. Repeals Previous Provisions:

    • Repeals specific Minnesota statutes and provisions from a 2023 law that conflict with the new modifications.

In summary, the proposed legislation strengthens consumer protections in Medicare supplement insurance, eliminates or reduces barriers for individuals with preexisting conditions, and enhances policyholder rights regarding renewability and guaranteed issue availability.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy
March 12, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Added clarity on policy conditions for Medicare Advantage plans."
      ],
      "removed": [],
      "summary": "This section modifies requirements for Medicare supplement insurance policies under section 62A.31.",
      "modified": [
        "Specifications of policy terms to align with federal standards."
      ]
    },
    "citation": "62A.31",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Guidelines for suspension due to Medicare assistance entitlement for up to 24 months."
      ],
      "removed": [],
      "summary": "This section addresses the suspension of policy benefits for individuals entitled to medical assistance.",
      "modified": [
        "Adjusted reinstatement terms after loss of entitlement."
      ]
    },
    "citation": "62A.31",
    "subdivision": "subdivision 1f"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Prohibits denial or pricing conditions based on preexisting conditions for Medicare-related coverage.",
      "modified": [
        "Reaffirmed the six-month enrollment window protection period."
      ]
    },
    "citation": "62A.31",
    "subdivision": "subdivision 1h"
  },
  {
    "analysis": {
      "added": [
        "Instruction for the inclusion of renewal provisions on the policy's first page."
      ],
      "removed": [],
      "summary": "This modifies renewal or continuation provisions in Medicare supplement policies.",
      "modified": [
        "Emphasizes on presentation of preexisting condition limitations in policies."
      ]
    },
    "citation": "62A.31",
    "subdivision": "subdivision 1p"
  },
  {
    "analysis": {
      "added": [
        "Criteria for eligible persons and requirements for issuing policies without exclusions."
      ],
      "removed": [],
      "summary": "Provides guaranteed issue rights for eligible individuals seeking Medicare supplement policies.",
      "modified": []
    },
    "citation": "62A.31",
    "subdivision": "subdivision 1u"
  },
  {
    "analysis": {
      "added": [
        "Clarifications for policies duplicating benefits under Medicare Part D."
      ],
      "removed": [],
      "summary": "Prohibits duplicate benefits and exclusions more restrictive than Medicare in supplement policies.",
      "modified": []
    },
    "citation": "62A.31",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        "Questions to identify concurrent coverage and intended policy replacements."
      ],
      "removed": [],
      "summary": "Requires specific questions on application forms to assess existing health coverage status.",
      "modified": [
        "Insights for direct response issuers handling Medicare supplement replacements."
      ]
    },
    "citation": "62A.44",
    "subdivision": "subdivision 2"
  }
]

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