MD Insurance Bulletin 03-04
New Guarantee Issue Rights for Certain Medicare Eligible Individuals
STATE OF MARYLAND
MARYLAND INSURANCE ADMINISTRATION
525 ST. PAUL PLACE, BALTIMORE, MARYLAND 21202-2272
WRITER’S DIRECT DIAL: 410-468-2205
Facsimile Number: 410-468-2204
e-mail: hmax@mdinsurance.state.md.us
BULLETIN
To:
Carriers Selling Medicare Supplements in Maryland
Re:
New Guarantee Issue Rights for Certain Medicare Eligible Individuals
Date:
April 25, 2003
Bulletin:
Life and Health # 03-04
Chapter 2 of the Acts of the General Assembly of 2003 (House Bill 1100) was signed into law as
an emergency measure by Governor Ehrlich on April 8, 2003.
Effective April 8, 2003, insurers and nonprofit health service plans that sell Medicare
supplement ("Medigap") policies in Maryland are required to guarantee issue all the policies that
it sells to any individual who meets the following criteria:
1. The individual is enrolled under an employee welfare benefit plan that
provides health benefits;
2. The employee welfare benefit plan in which the individual is enrolled
terminates;
3. Solely because of eligibility for Medicare, the individual is not eligible for the
tax credit for health insurance costs under §35 of the Internal Revenue Code
and enrollment in the Maryland Health Insurance Plan under § 14-501(f) of
the Insurance Article, as enacted by Section 1 of Chapter 2 of the Acts of
2003; and
4. The individual applies for the Medigap policy no later than 63 days after the
employee welfare benefit plan terminates.
ROBERT L. EHRLICH, JR.
GOVERNOR
MICHAEL S. STEELE
LIEUTENANT GOVERNOR
STEVEN B. LARSEN
COMMISSIONER
DONNA B. IMHOFF
DEPUTY COMMISSIONER
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Please note that this new right to guarantee issuance of a Medigap contract is not limited to
individuals who are over age 65, but is also available to individuals who are eligible for
Medicare due to disability.
With regard to group Medicare supplement policies, if an insurer or nonprofit health service plan
sells these contracts, it is required to accept only those individuals who qualify for membership
for the group coverage.
Any questions about this bulletin should be directed to the Life/Health Section of the Maryland
Insurance Administration at 410-468-2170.
_________________________
Howard Max
Acting Associate Commissioner
Life and Health