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Committee hears competing Medigap proposals to expand enrollment rights and change rating rules; bills held
Summary
The Senate Committee on Health and Human Services on April 3 considered S.B. 610 and S.B. 167 (Leader Lawson) and S.B. 267 (Senator Ujifusa), bills that would expand guaranteed‑issue rights and change rating rules for Medicare supplement policies.
The Senate Committee on Health and Human Services heard three related measures on April 3 that seek to change how Medicare supplement (Medigap) policies are issued and rated in Rhode Island. Leader Lawson sponsored S.B. 610 (with S.B. 167 introduced together), and Senator Ujifusa presented S.B. 267; all three were held by the committee.
Corey King of the Office of the Health Insurance Commissioner (OHIC) told the committee S.B. 610 aims to “create more consistent market rules” for Medigap by allowing an annual open enrollment period with guaranteed‑issue rights, shifting rating from attained‑age to community rating (so all enrollees pay the same rate), and authorizing OHIC in some cases to bill insurers for actuarial review costs. King noted community rating would raise premiums for younger enrollees while lowering them later in life, and recommended aligning any enrollment window with federal guidance.
Witnesses who testified in support included Matthew Neto of AARP Rhode Island; insurance agent Joe Sanappi and several individual residents described how underwriting can penalize beneficiaries who later leave Medicare Advantage for traditional Medicare. Sanappi gave examples of clients who faced substantially higher premiums when changing plans after a health event. AARP and other supporters asked for an enrollment window aligned with federal rules.
Blue Cross and Blue Shield of Rhode Island expressed concerns about affordability and the risk of adverse selection under community rating. Rich Glucksman of Blue Cross noted Rhode Island’s relatively high Medigap take‑up among traditional Medicare beneficiaries (the testimony cites 43.8%) compared with lower percentages in other states and cautioned that changes to rating and enrollment could pressure premiums.
Senator Ujifusa (sponsor of S.B. 267) urged broader changes: a continuous enrollment period (allowing beneficiaries to switch anytime) and extending guarantee‑issue protections to plans beyond Plan A (she cited state data showing roughly 40,000 Rhode Islanders have Medigap, with about 8,10 having Plan A and about 20,000 each on Plans C and F). Supporters and opponents agreed on the importance of aligning any state rule with federal enrollment windows for people leaving Medicare Advantage.
After questions and testimony from OHIC, AARP, insurers, producers and residents, the committee voted to hold S.B. 610, S.B. 167 and S.B. 267 for further consideration.
