AB 250

MEDICARE SUPPLEMENT

“BIRTHDAY RULE”

AB250 Text (state.nv.us)

What it Does:

1. Allows existing Medicare Supplement policyholders to have a new open enrollment period starting on the

first day of their birthday month and extending for at least 60 days after.

2. During this time, these policyholders may purchase a new Medicare Supplement plan (with the same or

1. At least 30 days before the beginning of the open enrollment period, but not more than 60 days,

Medicare Supplement carriers are required to notify their policyholders of their rights to enroll in a new

plan under AB 250; and the timeframes in which they can do so.

2. The Division expects carriers to still provide an open enrollment period to people with January birthdays,

even though they are not mandated to provide notice prior to the January 1

st

effective date of AB 250.

Carriers should still provide notice to policyholders with January birthdays during their open enrollment

period so they can take advantage of the “birthday rule” if they choose to.

What Medicare Supplement Carriers cannot do:

1. Carriers cannot rate up policyholders who choose to participate in the “birthday rule.”

2. Carriers must charge existing rates to new policyholders and cannot charge them new rates until the

renewal period.

How this affects Producers:

compensation for the first year is no more than 200 percent of the commission or other compensation paid for

selling or servicing the policy or certificate in the second year or period.

2. The commission or other compensation provided in a subsequent renewal year must be:

(a) The same as that provided in the second year or period; and

(b) Provided for not less than 5 renewal years.

3. An issuer or other entity shall not provide to its agents or other producers, and an agent or producer shall

not accept, compensation that is greater than the compensation for renewal that would have been paid by the

replacing issuer on a renewal policy to supplement Medicare or a certificate if the existing policy or certificate is

replaced.

4. As used in this section, “compensation” includes pecuniary or nonpecuniary remuneration of any kind relating

nothing in NAC 687B that addresses this. Consequently, the Division will allow carriers to choose the

effective date as they already do with existing policies.

2. While AB 250 states that “an insurer shall not deny or condition the issuance or effectiveness, or

discriminate in the price of coverage, of a Medicare supplemental policy based on the health status,

claims experience, receipt of health care or medical condition of a person described in subsection 1.”

However, there is no explicit guidance from the federal government or any other regulatory body

whether discounts should be permitted for non-tobacco users during the open enrollment period. AB 250

does not allow for policyholders to re-enroll with the same company and the same plan to go from a

non-standard rate to a standard rate.

lateral sclerosis (ALS)) on or after 1/1/20.

+Beneficiaries who were eligible for Medicare (age 65, due to 2 years of disability, end stage renal disease (ESRD)

*Innovative benefits include benefits not contained in other standardized Medicare Supplement plans including,

but not limited to, nurse advice lines, annual physical exams, preventive dental, vision and hearing care, drug

discount cards and gym memberships. Innovative benefits must not be considered when determining whether a

Medicare Supplement policy includes the same or lesser benefits than another such policy.

Note: Select plans are considered equal to the same plan type it is modifying.

Massachusetts Core Plan = 2010 Medigap Plan A

Massachusetts Supplement 1 = 2010 Medigap Plan C