Virginia House Bill HB64

Virginia 2024 Regular Session

• Introduced: 12/22/23
• Refer: 12/22/23

Caption

Medicare supplement policies; annual open enrollment period.

Impact

If enacted, HB64 will amend the Code of Virginia by introducing Section 38.2-3611, which ensures that insurers will not discriminate based on health status or previous claims. This aligns with a broader trend towards consumer-friendly health policies, allowing individuals to make adjustments to their Medicare plans without being penalized for their health condition. It also places a responsibility on insurers to inform policyholders about their rights and the details of the open enrollment period well in advance, thereby fostering transparency within the health insurance system.

Summary

House Bill 64 aims to establish an annual open enrollment period for Medicare supplement policies in Virginia, providing a structured timeframe during which individuals can change their coverage without undergoing health assessments. The bill mandates that insurers must allow current policyholders to purchase new policies that offer the same or lesser benefits than their current plan. This initiative is designed to enhance accessibility and flexibility for Medicare beneficiaries, ensuring they can make changes to their insurance as their needs evolve each year, specifically during the month of their birthday.

Contention

While this bill is generally seen as a positive step towards consumer protection, it may face criticism from insurance companies who may argue that such requirements could lead to increased administrative costs and complicate the underwriting processes. Additionally, concerns could be raised about the potential impact on insurance premiums if the risk pool changes significantly as individuals exercise their new rights to change plans. Advocates of the bill emphasize the importance of these provisions in protecting vulnerable populations while opponents may stress the challenges it could pose to insurers in maintaining financial stability.