New Hampshire bill ensures Medicare Supplement plans cover preexisting conditions

New Hampshire lawmakers are taking significant steps to enhance protections for seniors and individuals with disabilities regarding Medicare Supplement Plans. During a recent House Commerce and Consumer Affairs meeting, legislators discussed a proposed bill that would eliminate the current exemption allowing Medicare Supplement Plans to exclude individuals based on pre-existing conditions. This change aims to ensure that all insurers offering Medicare Supplement or Medigap plans must adhere to community rating, preventing them from charging higher premiums to those with pre-existing conditions.

The proposed legislation is crucial as it addresses a gap in protections that many Americans take for granted when purchasing health insurance. Currently, while most health insurance plans cannot deny coverage based on pre-existing conditions, Medicare Supplement Plans do not have the same safeguards after the initial enrollment period. This leaves many seniors vulnerable, particularly if they develop serious health issues after enrolling in a Medicare Advantage plan, which often has restrictive networks and high claim denial rates.

The bill's supporters argue that without these protections, many seniors may find themselves trapped in plans that do not meet their medical needs, ultimately leading to financial hardship. Statistics indicate that 65% of bankruptcies in the U.S. are due to medical debt, highlighting the potential consequences of inadequate insurance coverage.

While there are concerns that implementing community rating could lead to increased premiums, data from the Kaiser Family Foundation suggests that the difference may be minimal. The average premium for Medicare Supplement plans in states with community rating is only slightly higher than in states without it. Additionally, a recent survey indicated that insurers anticipate a 15% increase in premiums, a figure that some lawmakers find inconsistent with national trends.

The discussion also touched on the marketing practices surrounding Medicare Advantage plans, which are heavily promoted to new Medicare enrollees. Critics argue that these plans can mislead consumers, making it difficult for them to understand their options and the long-term implications of their choices.

As the bill moves forward, it aims to empower New Hampshire seniors and individuals with disabilities to choose the health insurance plans that best suit their needs, ensuring they are not left without adequate coverage when facing significant medical challenges. The committee's ongoing discussions will determine the next steps in this vital legislative process, with the potential to reshape the landscape of Medicare coverage in the state.