New Jersey Assembly Bill A3536

New Jersey 2024-2025 Regular Session

• Introduced: 2/5/24
• Refer: 2/5/24

Caption

Requires certain issuance standards and open enrollment for Medicare supplement policies.

Impact

The enactment of A3536 would significantly enhance protections for Medicare beneficiaries. It would prevent insurers from imposing restrictive practices that could limit access to necessary supplemental coverage. By ensuring that insurance policies are available year-round and cannot be denied based on preexisting conditions for certain applicants, this legislation would make supplemental insurance more accessible, ultimately enabling individuals to manage their healthcare expenses more effectively.

Summary

Assembly Bill A3536, introduced by Assemblywoman Luanne M. Peterpaul, mandates specific issuance standards for Medicare supplement policies in New Jersey. The bill's primary aim is to ensure that insurers do not deny or condition the issuance of these policies based on an applicant's health status, claims experience, or medical condition. It establishes a continuous open enrollment period throughout the year, allowing applicants, regardless of their age or disability status, to access Medicare supplement policies without facing discrimination in pricing or availability.

Contention

While the bill may garner broad support from advocates for consumer rights and healthcare accessibility, it could also face opposition from insurance providers concerned about potential increases in risk and market instability. Critics may argue that eliminating underwriting discretion could lead to adverse selection, where individuals only purchase coverage when they anticipate high medical needs. This aspect of A3536 may prompt discussions regarding the balance between consumer protections and the financial viability of insurance programs.