HF2403

Purpose of the Bill

This bill aims to modify existing laws regarding Medicare supplement benefits and the renewability and discontinuation of health plans in Minnesota.

Main Provisions

• Community Rate for Medicare Coverage: The bill establishes that organizations offering Medicare-related coverage must use a community rate that applies uniformly across newly issued and renewed policies. The community rate can consider factors like benefit design, geographic variations (with approval), healthy lifestyle behaviors, and penalties for late enrollment.

• Open Enrollment Restrictions: Medicare supplement policies cannot be sold outside specific enrollment periods as previously defined.

• Guaranteed Health Plan Renewal: Health plans must be guaranteed renewable unless certain conditions are not met, such as nonpayment, fraud, change in residence, or if the health plan discontinues certain types of individual health plans.

• Discontinuation Process for Health Plans: For an insurance carrier wanting to discontinue a plan, they must notify both the commissioner and the plan members within specified timeframes and offer alternative comparable plans.

• Notice of Plan Cancellation: Organizations must provide a 30-day notice for cancellation or nonrenewal, with exceptions requiring a 90-day notice in specific circumstances, such as plan termination or availability of replacement coverage.

Significant Changes

• Premium Adjustments: The bill allows for premium adjustments due to the transition to a community rate system and sets timelines and methods for implementing these adjustments.

• Discontinuation Procedures: Introduces new guidelines and approval processes for health carriers intending to discontinue individual health plans, including consideration of policyholder interests and an appeal process.

• Expanded Cancellation Protections: Sets more comprehensive guidelines on when and how a health maintenance organization can cancel or fail to renew coverage.

Relevant Terms

• Medicare supplement
• Community rate
• Guaranteed renewal
• Individual health plan
• Discontinuation
• Premium adjustment
• Notice of cancellation
• Open enrollment