Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 71.00 - Medicare Supplement Insurance To Facilitate The Implementation Of M.G.L. c. 176k And Section 1882 Of The Federal Social Security Act
Section 71.14 - Requirements for Application or Replacement
Current through Register 1531, September 27, 2024
(1) Application forms shall include the following questions and statements in precisely the following form designed to elicit information as to whether, as of the date of the application, the Applicant has another Medicare Supplement, Medicare Advantage, Medicaid coverage, or other health insurance policy in force or whether a Medicare Supplement Insurance Policy is intended to replace any other accident and sickness policy presently in force. A supplementary application or other form to be signed by the Applicant and agent containing such questions and statements may be used.
[Statements]
If the Medicare Supplement Insurance Policy provided coverage for outpatient prescription drugs and you enrolled in Medicare Part D while your Policy was suspended, the reinstituted Policy will not have outpatient prescription drug coverage, as you will be enrolled in the most comparable plan without outpatient prescription drug coverage.
[Issuers that permit a period of suspension for longer than 24 months should delete "for 24 months" and insert the appropriate limitation.]
If the Medicare Supplement Insurance Policy provided coverage for outpatient prescription drugs and you enrolled in Medicare Part D while your Policy was suspended, the reinstituted Policy will not have outpatient prescription drug coverage, as you will be enrolled in the most comparable plan without outpatient prescription drug coverage.
[Questions]
If you lost or are losing other health insurance coverage and received a notice from your prior insurer saying you were eligible for guaranteed issue of a Medicare Supplement Insurance Policy, or that you had certain rights to buy such a Policy, you may be guaranteed acceptance in one or more of our Medicare Supplement plans. Please include a copy of the notice from your prior insurer with your application. PLEASE ANSWER ALL QUESTIONS.
[Please mark Yes or No below with an "X"]
To the best of your knowledge,
Yes____ No____
Yes____ No____
[NOTE TO APPLICANT: If you are participating in a "Spend-Down Program" and have not met your "Share of Cost", please answer NO to this question.]
Yes____ No____
If yes,
Yes____ No____
Yes____ No____
START __/__/__ END __/__/__
Yes____ No____
Yes____ No____
Yes____ No____
Yes____ No____
__________________________________________________
Yes____ No____
Yes____ No____
________________________________________________
________________________________________________
________________________________________________
________________________________________________
START __/__/__ END __/__/__
(If you are still covered under the other policy, leave "END" blank.)
(2) Agents shall list any other health insurance policies they have sold to the Applicant.
(3) In the case of a direct response Issuer, a copy of the application or supplemental form, signed by the Applicant, and acknowledged by the Issuer, shall be returned to the Applicant by the Issuer upon delivery of the Policy.
(4) Upon determining that a sale will involve replacement of Medicare Supplement coverage, any Issuer, other than a direct response Issuer, or its agent, shall furnish the Applicant, prior to issuance or delivery of the Medicare Supplement Insurance Policy, a notice regarding replacement of Medicare Supplement coverage. One copy of the notice signed by the Applicant and the agent, except where the coverage is sold without an agent, shall be provided to the Applicant and an additional signed a copy shall be retained by the Issuer. A direct response Issuer shall deliver to the Applicant at the time of the issuance of the Policy the notice regarding replacement of Medicare Supplement coverage.
(5) The notice required by 211 CMR 71.14(4) for an Issuer shall be provided in precisely the following form in no less than 12-point type:
NOTICE TO APPLICANT REGARDING REPLACEMENT OF MEDICARE SUPPLEMENT INSURANCE
[Insurance company's name and address]
SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE. According to [your application] [information you have furnished], you intend to terminate existing Medicare Supplement Insurance and replace it with a Policy to be issued by [Company Name] Insurance Company. Your new Policy will provide 30 days within which you may decide without cost whether you desire to keep the Policy. You have 30 days to review your policy and decide whether to keep it, EXCEPT that if you are newly enrolling in a Medicare Supplement 1 plan, then you are not permitted to switch within the same company into a Medicare Supplement 1A plan until you have been covered by the company's Medicare Supplement 1 plan for a period of at least 12 months. You should review your new coverage carefully. Compare it with all accident and sickness coverage you now have. If, after due consideration, you find that purchase of this Medicare Supplement coverage is a wise decision, you should terminate your present Medicare supplement coverage. You should evaluate the need for other accident and sickness coverage you have that may duplicate this Policy.
STATEMENT TO APPLICANT BY ISSUER, INSURANCE PRODUCER, OR OTHER REPRESENTATIVE:
I have reviewed your current medical or health insurance coverage. To the best of my knowledge, this Medicare Supplement Insurance Policy will not duplicate your existing Medicare Supplement coverage because you intend to terminate your existing Medicare supplement coverage. The replacement Policy is being purchased for the following reason(s) (check one):
_________ Additional benefits
_________ No change in benefits, but lower premiums.
_________ Fewer benefits and lower premiums.
_________ Other. (please specify)
________________________________________________________________________
________________________________________________________________________
Do not cancel your present Policy until you have received your new Policy and are sure that you want to keep it. If you cancel your present Policy and then decide that you do not want to keep your new Policy, it may not be possible to get back the coverage of the present Policy.
_________________________________________________
(Signature of Insurance Producer or Other Representative)*
[Typed Name and Address of Issuer or Insurance Producer]
_________________________________________________
(Applicant's signature)
_________________________________________________
(Date)
[*Signature not required for direct response sales.]