FINAL BILL REPORT

SB 5032

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: Medicare Supplement Insurance. Medicare supplement insurance, commonly known as Medigap, fills coverage gaps in the federal Medicare program. There are several types of Medicare supplement policies, which are subject to both state and federal standards and enforced by the Office of the Insurance Commissioner. Issuers of Medicare supplement policies must issue coverage under the standardized plans B, C, D, F, F with high deductible, G, K, L, M, or N to a Medicare-eligible state resident if the policy replaces another Medicare supplement policy or other more comprehensive coverage. Plans C, F, and F with high deductible cover, as one component of the plans, the Medicare Part B deductible.

Medicare Access and CHIP Reauthorization Act. The federal Medicare Access and CHIP Reauthorization Act (MACRA) was enacted in April 2015, changing the federal statutes governing Medicare supplement policies. Under MACRA, beginning on January 1, 2020, a Medicare supplement policy that provides coverage of the Part B deductible may not be sold or issued to a newly eligible Medicare beneficiary.

Summary: Prior to January 1, 2020, every issuer of a Medicare supplement policy providing coverage to a resident of Washington must issue coverage under its standardized plans B, C, D, F, F with high deductible, G, G with high deductible, K, L, M, or N.

On or after January 1, 2020, every issuer of a Medicare supplement policy providing coverage to a resident of Washington must issue coverage under its standardized plans B, D, G, G with high deductible, K, L, M, or N.

Votes on Final Passage:

Senate	47	0
House	93	0