Brief Description: Allowing for a discount on medicare supplement insurance policies when premiums are deposited automatically.

Sponsors: Representatives Kristiansen, McMahan, Newhouse, Roach, McDonald, Sullivan, Ahern, Simpson, G., Pearson, Morrell, Bailey and Benson.

Hearing Date: 1/20/04

Staff: Dave Knutson (786-7146).

Background:

Health carriers that sell Medicare supplement insurance policies have given consumers premium rate discounts based on automatic deposit of premiums. The Office of the Insurance Commissioner recently informed health carriers that they must stop this practice because it violates a statute that requires all premiums for Medicare supplement insurance policies to be equal for all policy holders.

Summary of Bill:

Health carriers that issue Medicare supplement insurance policies are authorized to provide premium rate discounts based on automatic deposit of premiums.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.