Nevada Assembly Bill AB127

Nevada 2023 Regular Session

• Introduced: 2/9/23
• Refer: 2/9/23
• Report Pass: 4/19/23
• Engrossed: 4/24/23
• Refer: 4/24/23
• Report Pass: 5/22/23
• Enrolled: 5/31/23
• Chaptered: 6/2/23
• Passed: 6/2/23

Caption

Revises provisions governing Medicare supplemental policies. (BDR 57-467)

Impact

By standardizing the commission payment structure for Medicare supplemental policies, AB127 will likely enhance consumer protection and provide more clarity to potential buyers. This is particularly helpful for older adults and individuals with disabilities who may find navigating the complexities of insurance offerings challenging. The bill is designed in harmony with existing federal regulations, ensuring that state laws do not conflict with federal standards governing Medicare, which is expected to streamline the purchase process for consumers and foster fair competition among insurers.

Summary

Assembly Bill 127 aims to amend existing laws regarding Medicare supplemental policies by enforcing regulations on how insurers can manage commissions during open enrollment periods. The bill specifically prohibits insurers from varying commissions associated with the purchase of these policies based on when they are purchased during open enrollment, the classification of the policy as guaranteed issue, or any health-related factors of the insured. This move seeks to create a more equitable system where all individuals purchasing Medicare supplemental policies are treated equally, regardless of their medical history or health status.

Contention

While the bill has garnered support for its consumer-friendly approach, it may also face contention from insurance companies that argue against the restrictive nature of the commission regulations. Insurers may express concerns over their ability to incentivize agents and brokers effectively, potentially impacting their business model. However, proponents of the bill argue that protecting consumers from discrimination based on health status and promoting uniformity in commission practices is more critical than the operational flexibility sought by the insurers.