ANALYSIS OF HOUSE BILL 1049

        Mandating coverage for replacement medicare insurance policies.

Health Care Committee                          January 27, 1999

Washington State House of Representatives

SPONSORS:  Representatives Cody and Parlette

BACKGROUND:  This bill corrects an error in the statutory text.

Medicare Supplements (commonly called Medigap polices) are health insurance policies that provide ways to fill the coverage gaps left by Medicare.  In 1992, federal regulations set uniform standards for  this coverage with 10 standard supplements--A through J.  [See attached chart]

Medicare Supplements were not included in the definition of Ahealth plan@ adopted in 1993 and therefore are not covered by the "insurance reforms"-- preexisting condition limitations, portability, and guaranteed issue/renewability.

In 1995, portability protections were extended to this coverage so a person could purchase a medigap  policy Awithout evidence of insurability@ if the policy being replaced were more comprehensive.  However, there was an error on the wording referencing  A. . . more comprehensive coverage than the replaced policy.  It should reference Athe replacing policy.@

SUMMARY:  Language is changed to reference Areplacing policy.@