This bill, S.F. No. 2498, is a proposed Minnesota state law related to Medicare supplement insurance policies. It aims to modify preexisting condition limitations, improve consumer protections, and ensure the smooth replacement of Medicare supplement policies. Below is a summary of its main points:

Key Provisions:

1. Prohibiting Discrimination in Coverage & Pricing:

   • Health insurers cannot impose preexisting condition limitations or deny coverage based on health status, claims experience, or age.
   • Applies to individuals enrolling within six months of turning 65 and joining Medicare Part B or during any open enrollment period.

2. Guaranteed Issue Rights:

   • Expands protections for individuals switching from other health plans or Medicare Advantage plans to ensure they can access Medigap policies without additional restrictions.
   • Specifies scenarios where individuals can switch due to termination of prior coverage or plan changes.
   • Policies replacing previous plans must waive any waiting periods or exclusions for preexisting conditions if they were covered under the prior plan.

3. Suspension & Reinstatement for Medicaid Enrollees:

   • Allows individuals who become eligible for Medicaid to suspend their Medigap policy and reinstate it without penalty if they lose Medicaid within 24 months.

4. Consumer Protections When Replacing Medigap Policies:

   • Requires insurance companies and agents to inform applicants when they are replacing an existing Medicare supplement policy.
   • Consumers have 30 days to cancel a new policy without penalty if they change their minds.
   • Insurers must provide a standardized “Notice to Applicant Regarding Replacement” to outline potential risks of policy replacement.

5. Eliminating Certain Policy Provisions:

   • Removes overly restrictive exclusions in Medigap plans to align them with Medicare coverage.
   • Clarifies that replacement policies should not have new preexisting condition waiting periods.

6. Repealing Outdated Laws:

   • Repeals Minnesota Statutes 62A.3099 Subdivision 18b and 62A.31 Subdivision 1w.
   • Repeals a section of a 2023 law (Laws 2023, Ch. 57, Art. 2, Sec. 66).

Implications of the Bill:

• Protects seniors and disabled individuals from being denied Medigap coverage or charged more due to past health conditions.
• Eases transitions between different Medicare supplement insurance plans.
• Ensures transparency in policy replacements, reducing the risk of financial loss or unexpected coverage gaps for consumers.

This bill strengthens consumer rights, access, and protections in the Medicare supplement insurance market in Minnesota.