Iowa Senate Bill SF2081

Iowa 2023-2024 Regular Session

• Introduced: 1/22/24
• Refer: 1/22/24

Caption

A bill for an act relating to Medicare supplement policies and an annual open enrollment period.

Impact

The legislation seeks to protect applicants from discriminatory practices associated with Medicare supplement insurance. During the designated open enrollment period, insurers are prohibited from denying coverage or imposing medical underwriting based on an applicant's health history. Furthermore, the bill ensures that no exclusions for preexisting conditions can be applied during this period. This kind of protection is anticipated to foster greater equity in access to healthcare for older adults and those with disabilities, potentially improving their financial security when it comes to medical expenses.

Summary

Senate File 2081 aims to enhance access to Medicare supplement policies by establishing an annual open enrollment period for applicants. Starting January 1, 2025, the bill mandates a thirty-day open enrollment period that commences on an applicant's birthday. This period is designed primarily for individuals aged 65 and older, but it also encompasses those younger than 65 who qualify for Medicare under specific conditions, such as disabilities or certain medical issues. The goal of the bill is to ensure that individuals can obtain necessary coverage without undue barriers based on health status or prior medical conditions.

Contention

Opponents of the bill may raise concerns regarding the implications for insurance providers, particularly regarding the financial impacts of mandatory coverage without medical underwriting. Some argue that while the intentions behind the bill are commendable, the restrictions placed on insurers could lead to increased costs that might eventually be passed down to consumers in the form of higher premiums. Furthermore, there may be debate on whether the open enrollment period aligns well with the insurance industry's operational frameworks, which could impact the overall efficacy of the bill's objectives.