*SB0215.2*
Reprinted
January 30, 2024
SENATE BILL No. 215
_____
DIGEST OF SB 215 (Updated January 29, 2024 2:42 pm - DI 55)
Citations Affected: IC 27-8.
Synopsis: Medicare supplement insurance. Provides that after
December 31, 2024, an issuer that makes a Medicare supplement
policy or certificate available to persons at least 65 years old must
make the equivalent policy or certificate available to an individual
under the age of 65 who is eligible for Medicare because of having a
federally defined disability or end stage renal disease. (Under current
law, an issuer that makes a Medicare supplement policy or certificate
available to persons at least 65 years old is required only to make a
Plan A policy or certificate available to individuals under the age of 65,
and is required to make the Plan A policy or certificate available to an
individual under 65 who is eligible for Medicare because of having a
federally defined disability but is not required to make the Plan A
policy or certificate available to an individual under 65 who is eligible
for Medicare because of having end stage renal disease.) Provides that
if an individual who less than 65 years old, who is eligible for Medicare
(Continued next page)
Effective: July 1, 2024.
Walker K, Messmer, Carrasco,
Freeman, Qaddoura,
Randolph Lonnie M
January 9, 2024, read first time and referred to Committee on Insurance and Financial
Institutions.
January 25, 2024, amended, reported favorably — Do Pass.
January 29, 2024, read second time, amended, ordered engrossed.
SB 215—LS 6945/DI 55 Digest Continued
because of having a federally defined disability or end stage renal
disease, and who meets certain conditions as to application timeliness
applies for a Medicare supplement policy or certificate, the issuer of
the policy or certificate is prohibited from: (1) denying or conditioning
the issuance or effectiveness of the individual's policy or certificate; (2)
charging the individual a premium rate higher than the premium rate
the issuer charges an individual 65 years of age; or (3) issuing to the
individual a policy or certificate that contains a waiting period or a
preexisting condition limitation or exclusion. Provides for the
expiration of Code provisions that would be superseded by the new
requirements applying to issuers of Medicare supplement policies or
certificates.
SB 215—LS 6945/DI 55SB 215—LS 6945/DI 55 Reprinted
January 30, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 215
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 27-8-13-9, AS AMENDED BY P.L.227-2019,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 9. (a) A Medicare supplement policy, contract, or
4 certificate in force in Indiana may not contain benefits that duplicate
5 benefits provided by Medicare. However, a change in Medicare
6 coverage that becomes effective after a Medicare supplement policy,
7 contract, or certificate is in force in Indiana and that causes a
8 duplication of benefits does not void the policy, contract, or certificate.
9 (b) The commissioner shall adopt rules under IC 4-22-2 to establish
10 specific standards for policy provisions of Medicare supplement
11 policies and certificates. Such standards shall be in addition to and in
12 accordance with Indiana law. No requirement of IC 27 relating to
13 minimum required policy benefits other than the minimum standards
14 contained in this chapter apply to Medicare supplement policies and
15 certificates. The standards may cover, but are not limited to:
16 (1) terms of renewability;
17 (2) initial and subsequent conditions of eligibility;
SB 215—LS 6945/DI 55 2
1 (3) nonduplication of coverage;
2 (4) probationary periods;
3 (5) benefit limitations, exceptions, and reductions;
4 (6) elimination periods;
5 (7) requirements for replacement;
6 (8) recurrent conditions; and
7 (9) definitions of terms.
8 (c) The commissioner may adopt rules under IC 4-22-2 that specify
9 prohibited policy provisions not specifically authorized by statute that,
10 in the opinion of the commissioner, are unjust, unfair, or unfairly
11 discriminatory to a person insured or proposed to be insured under a
12 Medicare supplement policy or certificate.
13 (d) Notwithstanding any other law, a Medicare supplement policy
14 or certificate shall not exclude or limit benefits for a loss incurred more
15 than six (6) months after the effective date of the policy because the
16 loss involves a preexisting condition. The policy or certificate shall not
17 define a preexisting condition more restrictively than a condition for
18 which medical advice was given or treatment was recommended by or
19 received from a physician within six (6) months before the effective
20 date of coverage.
21 (e) After June 30, 2020, an issuer that makes a Medicare
22 supplement policy or certificate available to a person who is at least
23 sixty-five (65) years of age and eligible for Medicare benefits as
24 described in 42 U.S.C. 1395c(1) shall make at least one (1) Medicare
25 supplement policy or certificate that meets the requirements of section
26 9.5 of this chapter available to an individual who is eligible for and
27 enrolled in Medicare by reason of disability as described in 42 U.S.C.
28 1395c(2). 42 U.S.C. 426 and 42 U.S.C. 423. This subsection expires
29 January 1, 2025.
30 SECTION 2. IC 27-8-13-9.1 IS ADDED TO THE INDIANA CODE
31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
32 1, 2024]: Sec. 9.1. After December 31, 2024, an issuer that makes a
33 Medicare supplement policy or certificate available to a person
34 who is at least sixty-five (65) years of age and is eligible for
35 Medicare benefits as described in 42 U.S.C. 1395c(1) shall make the
36 equivalent Medicare supplement policy or certificate available to
37 an individual who:
38 (1) is less than sixty-five (65) years of age; and
39 (2) is eligible for and enrolled in Medicare:
40 (A) by reason of a disability as described in 42 U.S.C.
41 426(b) and defined in 42 U.S.C. 423(d); or
42 (B) by reason of being medically determined to have end
SB 215—LS 6945/DI 55 3
1 stage renal disease as described in 42 U.S.C. 426-1.
2 SECTION 3. IC 27-8-13-9.2 IS ADDED TO THE INDIANA CODE
3 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4 1, 2024]: Sec. 9.2. (a) This section applies to an individual:
5 (1) who is less than sixty-five (65) years of age;
6 (2) who is eligible for and enrolled in Medicare:
7 (A) by reason of a disability as described in 42 U.S.C.
8 426(b) and defined in 42 U.S.C. 423(d); or
9 (B) by reason of being medically determined to have end
10 stage renal disease as described in 42 U.S.C. 426-1; and
11 (3) who applies for a Medicare supplement policy or
12 certificate and either:
13 (A) submits the application before or during the six (6)
14 month period beginning with the first day of the first
15 month during which the applicant becomes enrolled for
16 benefits under Medicare Part B without regard to age; or
17 (B) was enrolled for benefits under Medicare Part B
18 without regard to age before January 1, 2025, and:
19 (i) submits the application for a Medicare supplement
20 policy or certificate during the six (6) month period
21 beginning January 1, 2025; or
22 (ii) is unable to submit an application for a Medicare
23 supplement policy or certificate because an application
24 is not yet available but makes a request for an
25 application for a Medicare supplement policy or
26 certificate during the six (6) month period beginning
27 January 1, 2025.
28 (b) After December 31, 2024, the issuer of a Medicare
29 supplement policy or certificate shall not:
30 (1) deny or condition the issuance or effectiveness of a
31 Medicare supplement policy or certificate to which subsection
32 (a)(3) applies because of the health status, claims experience,
33 receipt of health care, or medical condition of an individual
34 described in subsection (a);
35 (2) charge an individual described in subsection (a) a
36 premium rate for a Medicare supplement policy or certificate
37 to which subsection (a)(3) applies that exceeds the premium
38 rate the issuer charges an individual who is sixty-five (65)
39 years of age for the same Medicare supplement policy or
40 certificate; or
41 (3) issue to an individual described in subsection (a) a
42 Medicare supplement policy or certificate to which subsection
SB 215—LS 6945/DI 55 4
1 (a)(3) applies that contains:
2 (A) a waiting period; or
3 (B) a preexisting condition limitation or exclusion.
4 SECTION 4. IC 27-8-13-9.5, AS AMENDED BY P.L.156-2020,
5 SECTION 110, IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2024]: Sec. 9.5. (a) This section applies:
7 (1) after June 30, 2020; and
8 (2) to a Medicare supplement policy or certificate made available
9 under section 9(e) of this chapter to an individual who is eligible
10 for and enrolled in Medicare by reason of disability as described
11 in 42 U.S.C. 1395c(2).
12 (b) A Medicare supplement policy or certificate described in
13 subsection (a) must meet the following requirements:
14 (1) Except as provided in this section, meet all requirements of
15 this chapter that apply to a Medicare supplement policy or
16 certificate made available to a person who is at least sixty-five
17 (65) years of age and eligible for Medicare as described in 42
18 U.S.C. 1395c(1).
19 (2) Be standardized as Plan A by the federal Centers for Medicare
20 and Medicaid Services.
21 (c) An individual may enroll in a Medicare supplement policy or
22 certificate under this section as follows:
23 (1) At any time the individual is authorized or required to enroll
24 under federal law.
25 (2) Either:
26 (A) on July 1, 2020; or
27 (B) six (6) months after enrolling in Medicare Part B;
28 whichever is later.
29 (3) Within six (6) months after receiving notice that the individual
30 has been retroactively enrolled in Medicare Part B due to a
31 retroactive eligibility decision under 42 U.S.C. 1395.
32 (4) Within six (6) months after experiencing a qualifying event
33 under 42 U.S.C. 1395.
34 (d) Notwithstanding any other law, an issuer or another entity may
35 provide to an insurance producer or another agent of the issuer or other
36 entity a commission or other compensation of not more than two
37 percent (2%) of the premium for the sale of a Medicare supplement
38 policy or certificate described in subsection (a).
39 (e) This section expires January 1, 2025.
SB 215—LS 6945/DI 55 5
COMMITTEE REPORT
Madam President: The Senate Committee on Insurance and
Financial Institutions, to which was referred Senate Bill No. 215, has
had the same under consideration and begs leave to report the same
back to the Senate with the recommendation that said bill be
AMENDED as follows:
Page 2, line 32, delete "(a)".
Page 3, delete lines 2 through 22.
Page 3, line 42, delete "2024;" and insert "2025;".
Page 4, line 6, delete "2024." and insert "2025.".
and when so amended that said bill do pass.
(Reference is to SB 215 as introduced.)
BALDWIN, Chairperson
Committee Vote: Yeas 7, Nays 1.
_____
SENATE MOTION
Madam President: I move that Senate Bill 215 be amended to read
as follows:
Page 4, after line 3, begin a new paragraph and insert:
"SECTION 4. IC 27-8-13-9.5, AS AMENDED BY P.L.156-2020,
SECTION 110, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 9.5. (a) This section applies:
(1) after June 30, 2020; and
(2) to a Medicare supplement policy or certificate made available
under section 9(e) of this chapter to an individual who is eligible
for and enrolled in Medicare by reason of disability as described
in 42 U.S.C. 1395c(2).
(b) A Medicare supplement policy or certificate described in
subsection (a) must meet the following requirements:
(1) Except as provided in this section, meet all requirements of
this chapter that apply to a Medicare supplement policy or
certificate made available to a person who is at least sixty-five
(65) years of age and eligible for Medicare as described in 42
U.S.C. 1395c(1).
(2) Be standardized as Plan A by the federal Centers for Medicare
and Medicaid Services.
SB 215—LS 6945/DI 55 6
(c) An individual may enroll in a Medicare supplement policy or
certificate under this section as follows:
(1) At any time the individual is authorized or required to enroll
under federal law.
(2) Either:
(A) on July 1, 2020; or
(B) six (6) months after enrolling in Medicare Part B;
whichever is later.
(3) Within six (6) months after receiving notice that the individual
has been retroactively enrolled in Medicare Part B due to a
retroactive eligibility decision under 42 U.S.C. 1395.
(4) Within six (6) months after experiencing a qualifying event
under 42 U.S.C. 1395.
(d) Notwithstanding any other law, an issuer or another entity may
provide to an insurance producer or another agent of the issuer or other
entity a commission or other compensation of not more than two
percent (2%) of the premium for the sale of a Medicare supplement
policy or certificate described in subsection (a).
(e) This section expires January 1, 2025.".
(Reference is to SB 215 as printed January 26, 2024.)
WALKER K
SB 215—LS 6945/DI 55