Generally, Medicare Part A provides coverage for inpatient care and Medicare
Part B provides coverage for outpatient care. Generally, a person is eligible for
Medicare when he or she reaches age 65 or if he or she is under age 65 and disabled.
Medicare supplement policies are private insurance policies that may be purchased
by persons who are enrolled in Medicare and that provide supplemental coverage to
that provided under Medicare, such as coverage for additional services, for the
portion of the cost of services not paid by Medicare, or for deductibles required under
Medicare.

This bill creates two special enrollment periods under Medicare supplement
policies. Under the bill, an insurer offering a Medicare supplement policy may not
deny coverage under the policy on the basis of health status, claims experience,
receipt of health care, medical condition, disability, or age to a person under age 65
who is eligible for Medicare Part B during the six-month period beginning on the
first day of the month in which the person first enrolls in Medicare Part B. The bill
also requires every insurer offering a Medicare supplement policy to provide an
annual open enrollment period during which no person who is covered under another
Medicare supplement policy and no person who is under age 65 and enrolled in
Medicare Part B may be denied coverage under the insurer's Medicare supplement
policy on the basis of a preexisting condition. In addition, the insurer may not impose
on any person who obtains coverage during the annual open enrollment period any

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preexisting condition exclusion. The annual open enrollment period must begin and
end on the same dates as the federal Medicare annual open enrollment period, also
known as the annual election period.