Florida Senate - 2009               CS for CS for CS for SB 1022
       
       
       
       By the Policy and Steering Committee on Ways and Means; the
       Committees on Health Regulation; and Banking and Insurance; and
       Senators Altman, Fasano, Detert, Rich, Hill, and Siplin
       
       
       576-05821-09                                          20091022c3
    1                        A bill to be entitled                      
    2         An act relating to Medicare; amending s. 627.6741,
    3         F.S.; requiring that insurers issuing Medicare
    4         supplement policies in this state offer the
    5         opportunity to enroll in a Medicare supplement policy
    6         to certain individuals having a disability or end
    7         stage renal disease; permitting insurers offering
    8         Medicare supplement policies to effect a one-time rate
    9         schedule change; authorizing insurers to propose a
   10         rate adjustment that considers the experience of
   11         policies or certificates for persons younger than 65
   12         years of age; establishing credibility criteria for
   13         the rate adjustment; providing an effective date.
   14  
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Subsection (1) of section 627.6741, Florida
   18  Statutes, is amended to read:
   19         627.6741 Issuance, cancellation, nonrenewal, and
   20  replacement.—
   21         (1)(a) An insurer issuing Medicare supplement policies in
   22  this state shall offer the opportunity of enrolling in a
   23  Medicare supplement policy, without conditioning the issuance or
   24  effectiveness of the policy on, and without discriminating in
   25  the price of the policy based on, the medical or health status
   26  or receipt of health care by the individual:
   27         1.(a) To any individual who is 65 years of age or older, or
   28  under age 65 and eligible for Medicare by reason of disability
   29  or end-stage renal disease, and who resides in this state, upon
   30  the request of the individual during the 6-month period
   31  beginning with the first month in which the individual has
   32  attained 65 years of age and is enrolled in Medicare Part part
   33  B, or is eligible for Medicare by reason of a disability or end
   34  stage renal disease, and is enrolled in Medicare Part B; or
   35         2.(b) To any individual who is 65 years of age or older, or
   36  under age 65 and eligible for Medicare by reason of a disability
   37  or end-stage renal disease, who and is enrolled in Medicare Part
   38  part B, and who resides in this state, upon the request of the
   39  individual during the 2-month period following termination of
   40  coverage under a group health insurance policy;.
   41         (b)The 6-month period to enroll in a Medicare supplement
   42  policy for an individual who is under age 65 and eligible for
   43  Medicare as a result of a disability or end-stage renal disease
   44  and otherwise eligible under subparagraph (a)1. or subparagraph
   45  (a)2. and first enrolled in Medicare Part B before October 1,
   46  2009, begins on October 1, 2009.
   47         (c)A company that has offered Medicare supplement policies
   48  to individuals under age 65 who are eligible for Medicare by
   49  reason of a disability or end-stage renal disease before July 1,
   50  2009, may, one time only, effect a rate schedule change that
   51  redefines the age bands of the premium classes without
   52  activating the period of discontinuance required by s.
   53  627.410(6)(e)2.
   54         (d)As a part of an insurer’s first rate filing for a block
   55  of policy forms in 2012, an insurer may propose a rate
   56  adjustment that considers the experience of the policies or
   57  certificates for those individuals under age 65 separate from
   58  the balance of the block. For this one filing only, credibility
   59  of that experience shall be as follows: if a block of policy
   60  forms has 1,250 or more policies or certificates in force in the
   61  age band, including ages under age 65, full or 100 percent
   62  credibility shall be given to the experience. If fewer than 250
   63  policies or certificates are in force, no or 0 percent
   64  credibility shall be given. Linear interpolation shall be used
   65  for in-force amounts between the low and high values. Florida
   66  only experience shall be used if it is 100 percent credible. If
   67  Florida experience is not 100 percent credible, a combination of
   68  Florida and nationwide experience shall be used. If Florida
   69  experience is zero percent credible, nationwide experience shall
   70  be used.
   71  
   72  A Medicare supplement policy issued to an individual under
   73  subparagraph (a)1. paragraph (a) or subparagraph (a)2. paragraph
   74  (b) may not exclude benefits based on a preexisting condition if
   75  the individual has a continuous period of creditable coverage,
   76  as defined in s. 627.6561(5), of at least 6 months as of the
   77  date of application for coverage.
   78         Section 2. This act shall take effect October 1, 2009.