CHAPTER 182
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1
CHAPTER 182
( HB 345 )
AN ACT relating to Medicare supplement insurance.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
SECTION 1. A NEW SECTION OF KRS 304.14 -500 TO 304.14-550 IS CREATED TO READ AS
FOLLOWS:
(1) As used in this section:
(a) "Non-age eligible person":
1. Means a person who is:
a. Under the age of sixty-five (65); and
b. Eligible for Medicare by reason other than age; and
2. Includes persons entitled to benefits under 42 U.S.C. sec. 426(b) or 426-1, as amended; and
(b) "Weighted average aged premium rate" means a premium rate calculated as follows:
1. First, multiply the premium rate for each age band, age sixty-five (65) and over, by the
number of Kentucky insureds in-force in that age band to arrive at the total Kentucky
premium for each age band age sixty-five (65) and over;
2. Then, calculate the sum of the Kentucky premium for all age bands age sixty-five (65) and
over to arrive at the total Kentucky premium for all age bands age sixty-five (65) and over;
3. Then, calculate the sum of the Kentucky insureds in-force for all age bands age sixty-five (65)
and over to arrive at the total number of Kentucky insureds in-force for all age bands age
sixty-five (65) and over; and
4. Last, divide the total determined under subparagraph 2. of this paragraph by the total
determined under subparagraph 3. of this paragraph to arrive at the weighted average aged
premium rate.
(2) Except as provided in subsection (3)(b)1. of this section, an insurer shall not deny, condition the issuance or
effectiveness of, or discriminate in the pricing of a Medicare supplement policy available for sale in this
state because of the health status, claims experience, receipt of health care, or medical condition of an
applicant if the applicant:
(a) Submits an application for the policy prior to or during the six (6) month period beginning on the
first day of the first month in which the applicant is both:
1. Sixty-five (65) years of age or older; and
2. Timely enrolled for benefits under Medicare Part B without penalty under federal law;
(b) Is a non-age eligible person and:
1. Submits an application for the policy prior to or during the six (6) month period beginning on
the first day of the first month in which the non-age eligible person is enrolled for benefits
under Medicare Part B; or
2. Satisfies both of the following requirements:
a. The applicant was enrolled for benefits under Medicare Part B prior to the effective
date of this section; and
b. Either:
i. The applicant submits an application for the policy during the six (6) month
period beginning on the effective date of this section; or
ii. If an application is not available for the applicant to submit under subpart i. of ACTS OF THE GENERAL ASSEMBLY 2
this subdivision on or before the effective date of this section, the applicant
makes a request for an application for the policy during the six (6) month period
beginning on the effective date of this section; or
(c) Satisfies all of the following requirements:
1. At the time the application is submitted, the applicant is insured under a Medicare supplement
policy;
2. The application for the policy is submitted:
a. To an insurer that is different than the insurer that issued the applicant's current
Medicare supplement policy; and
b. Within sixty (60) days of the applicant's birthday date; and
3. The applicant seeks to maintain the same Medicare supplement plan.
(3) (a) Subject to paragraph (b) of this subsection, all Medicare supplement policies available for sale in this
state shall be made available to the applicants referenced in subsection (2)(b) of this section.
(b) For policies made available to applicants referenced in subsection (2)(b) of this section:
1. The applicant shall not be charged more than the weighted average aged premium rate for the
policy;
2. The insurer shall demonstrate compliance with subparagraph 1. of this paragraph; and
3. The policy shall not contain any waiting period or pre-existing condition limitation or
exclusion.
Section 2. KRS 304.14-520 is amended to read as follows:
(1) Notwithstanding any other provision of state law except subsection (3)(b)3. of Section 1 of this Act[of this
state], a Medicare supplement policy shall[may] not:
(a) Deny a claim for losses incurred more than six (6) months from the effective date of coverage for a pre-
existing condition; or[. The policy may not ]
(b) Define a pre-existing condition more restrictively than a condition for which medical advice was given
or treatment was recommended by or received from a physician within six (6) months before the
effective date of coverage.
Section 3. Sections 1 and 2 of this Act apply to Medicare supplement policies available, issued, or renewed
in this state on or after January 1, 2024.
Section 4. (1) Insurers shall file all policy forms and rates and comply with any other regulatory
requirements in a timely manner so as to ensure that applications are available for applicants to submit under Section
1 of this Act on or before January 1, 2024.
(2) The Department of Insurance shall take any and all regulatory action necessary in a timely manner so as
to ensure that applications are available for applicants to submit under Section 1 of this Act on or before January 1,
2024, including but not limited to:
(a) Reviewing policy forms, rates, and other information and forms; and
(b) Promulgating any administrative regulations necessary to implement Section 1 of this Act.
Section 5. Sections 1, 2, and 3 of this Act take effect on January 1, 2024.
Signed by Governor April 6, 2023.