Medicare Supplement Insurance - Newly Adopted Rules

Rule Caption:  Clarifying six month guarantee issue period and establishing "birthday rule" for Medicare supplement insurance

 

The Oregon Insurance Division recently filed permanent rules with the Secretary of State regarding the above.  The rules were adopted on 2/15/2012 and become effective on 1/1/2013. These rules were developed in response to numerous complaints received by the Department of Consumer and Business Services regarding open enrollment periods and unexpected rate increases with respect to Medicare supplement policies. To address these complaints, the rules:

 

--Clarify that for a person who receives "retroactive" eligibility for Medicare as a result of an appeal of an initial denial for eligibility, the six month open enrollment period      begins after the person is notified of their eligibility, not on the date the person's eligibility has been backdated to.

 

--Adopt a "birthday rule" for Medicare supplement policies to allow an individual the opportunity to change Medicare supplement plans (as long as the new policy has the same or lesser benefits) with guaranteed issue and nondiscrimination in rating once per year for a period of thirty days beginning on the individual's birthday.

 

For detailed information on this rule, we invite you to visit our web site at http://www.insurance.oregon.gov/rules/recent_admin_rules.html.