New Rules and Options for Medicare Supplement Policy Holders

Contact: Shannon Hohl, 208-334-4315
Shannon.Hohl@doi.idaho.gov

BOISE, ID (November 16, 2021) – Idaho’s laws and rules for Medicare Supplement policies have changed. The Idaho legislature approved legislation to provide additional options and consumer protections for Idaho seniors. The Idaho Department of Insurance (“the Department”) published a temporary rule on November 3 related to Medicare Supplement policies in accordance with Senate Bill 1143, signed by Governor Little on April 22, 2021. The temporary rule is the result of negotiated rulemaking.

The Department is providing information, FAQs, and details on an upcoming webinar for the public and industry about the changes on its website: doi.idaho.gov.

The rule, IDAPA 18.04.10, was published November 3 in the Administrative Bulletin Volume 21-11, and includes two major changes effective after February 28, 2022:

1.      Medicare Supplement policyholders may change their insurance company and/or plan annually regardless of health conditions during a 63-day enrollment period beginning on the policyholder’s birthday; and

2.      Premium rates for new Medicare Supplement policies (including when changing insurance companies) will no longer be based on the age of the applicant. This is referred to as “community rating.”

The rule also prohibits charging application fees, higher premium rates based on the method of payment, and other unfair trade practices.

It is important to know that current Medicare Supplement plans are guaranteed renewable, and current policies will continue unless a change is requested by the policyholder. These rule changes provide flexibility to current Medicare Supplement policyholders who wish to change their policy, but no change is required. After February 28, 2022, existing Medicare Supplement policyholders may choose to shop for comparable community-rated coverage starting the day of their birthday.

“These changes will give Idaho consumers more options for plans that best fit their changing medical needs,” said Director Dean Cameron. “I strongly encourage consumers to seek guidance from our SHIBA representatives and a licensed agent.”

Idahoans with questions may call toll free (800) 247-4422 to speak with the State of Idaho’s Senior Health Insurance Benefits Advisors (SHIBA) and can find licensed agents through the Department’s website: doi.idaho.gov.

Requests for additional information or other inquiries regarding the rule changes can be directed to Shannon Hohl at 208-334-4315 or Shannon.Hohl@doi.idaho.gov.

About the Department of Insurance

The Idaho Department of Insurance has been regulating the business of insurance in Idaho since 1901. The mission of the Department is to serve and protect Idahoans by equitably, effectively and efficiently administering the Idaho Insurance Code and the International Fire Code. For more information, please visit us at doi.idaho.gov or email us at consumeraffairs@doi.idaho.gov.

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