New Jersey Senate Bill S1162

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Provides guaranteed issue rights to certain applicants for Medicare supplement insurance policies.

Impact

If enacted, S1162 would significantly modify the current practices of health insurance companies in New Jersey. Under the existing system, applicants only receive guaranteed issue rights during a limited six-month open enrollment period upon turning 65 or in certain qualifying scenarios. Many seniors who miss this window might face challenges in obtaining coverage later on. By implementing continuous guaranteed issue rights, this bill aims to remove these barriers and protect aging citizens from involuntary loss of insurance options.

Summary

Senate Bill S1162 aims to enhance protections for senior citizens applying for Medicare supplement insurance policies in New Jersey by providing guaranteed issue rights. This means that insurance carriers will be prohibited from denying coverage based on an applicant's health status, prior claims, or preexisting medical conditions. The bill specifically targets applicants aged 65 and older who are enrolled in Medicare Part B, ensuring that these individuals have consistent access to supplemental insurance without discrimination.

Contention

The bill has drawn attention due to differing opinions on its implications. Supporters argue that S1162 is a necessary reform to ensure equitable access to healthcare for the elderly, particularly in addressing past experiences of discrimination in insurance coverage based on health conditions. Conversely, critics may view it as an additional layer of regulation that could impact insurance company operations and overall healthcare costs in the state. Debates are expected as stakeholders discuss the balance between consumer protection and the operational flexibility of insurance providers.