SENATE BILL REPORT

HB 1505

BYRepresentatives Zellinsky, Baugher, Sayan, Dellwo, Chandler, Anderson, Day, Crane, Winsley, Beck, Schmidt, Prentice, Rayburn, Kremen, Rector, Bowman and P. King 

Forbidding the use of age as a basis for rating the cost of medicare supplemental health insurance.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):March 30, 1989; February 23, 1990

Senate Staff:Gerard S. Poliquin (786-7403)

AS OF FEBRUARY 21, 1990

BACKGROUND:

Individuals eligible for federal Medicare may choose to subscribe to additional private health insurance coverage to augment their entitlement benefits.  The state code which regulates this optional coverage called Medicare supplemental health insurance, among other elements, regulates the ratio between claims paid and rates collected.  This regulation does not limit the kind of elements that may be included by the insurer in meeting the required ratio.  Therefore an individual's age is one of the criteria often used to impact the ratio.

SUMMARY:

Age may not be used in determining the premium charged to an individual for Medicare supplemental health insurance.  The portion of the code mandated ratio between claims paid and premiums previously impacted by individual age considerations will now be driven by societal experience, or what is described in the insurance industry as community rating.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested