THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY LONGIETTI, CALTAGIRONE, CARROLL, COHEN, D. COSTA, DALEY, DeLUCA, DONATUCCI, GEORGE, GIBBONS, HALUSKA, HARKINS, HORNAMAN, JOSEPHS, MURT, PETRARCA, SABATINA, SWANGER AND WHITE, MARCH 17, 2011

REFERRED TO COMMITTEE ON INSURANCE, MARCH 17, 2011  

AN ACT

Amending the act of December 15, 1982 (P.L.1291, No.292),

entitled "An act to provide for the reasonable

standardization and minimum loss ratios of coverage and

simplification of terms and benefits of group medicare

supplement accident and health insurance policies or group

subscriber contracts of health plan corporations and

nonprofit health service plans; to facilitate public

understanding and comparison of such policies; to eliminate

provisions contained in such policies which may be misleading

or confusing in connection with the purchase thereof or with

the settlement of claims; and to provide for full disclosure

in the sale of such coverages to persons eligible for

medicare by reason of age," providing for the return of

premium funds under certain circumstances.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 8 of the act of December 15, 1982

(P.L.1291, No.292), known as the Medicare Supplement Insurance

Act, is amended to read:

Section 8.  Requirements for replacement.

(a)  Application or enrollment forms shall include a question

designed to elicit information as to whether a certificate to be

issued under a medicare supplement policy is intended to replace

any other accident and health insurance presently in force. A

supplementary application or other form to be signed by the

applicant containing such a question may be used.

(b)  Upon determining that a sale will involve replacement,

an insurer, other than a direct response insurer, or its agent,

shall furnish the applicant, prior to issuance or delivery of

the certificate, a notice designed to inform the applicant of

the essential differences in coverage on a form consistent with

the then current model notification form adopted by the National

Association of Insurance Commissioners. One copy of such notice

shall be retained by the applicant and an additional copy signed

by the applicant shall be retained by the insurer. A direct

response insurer shall deliver the notice to the applicant upon

issuance of the certificate.

(c)  An insurer shall refund the balance of any premium paid

under a Medicare supplement policy upon receipt of proof from

the insured that other insurance coverage was obtained.

Section 2.  This act shall take effect immediately.