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 71.20 - Permitted Surcharges or Discounts for Medicare Supplement Insurance

(1) To the extent permitted by federal law and subject to the provisions of 211 CMR 71.10(5), an Issuer may apply a surcharge to the premium for a Medicare Supplement Insurance Policy for an Eligible Person who is a Late Enrollee or who Upgrades Coverage. For Late Enrollees, a surcharge may be applied, unless the Reasonably Actuarially Equivalent prior coverage was continuous from either the Late Enrollee's initial eligibility or three years prior to the effective date of the new coverage, whichever is later. Any surcharge may not exceed 15% annually and may not be charged for more than three years from the date it is imposed by the carrier. Each annual surcharge shall be applied to the premium for that year. No surcharge may be imposed by an Issuer, unless that Issuer also applies discounts for the Medicare Supplement Insurance Policy in accordance with 211 CMR 71.20(2).

(2) To the extent permitted by federal law, as of January 1, 1995, an Issuer may discount the premium for such Medicare Supplement Insurance Policy for a person who has enrolled during the six-month period beginning at the time the person become initially eligible for coverage after 65 years of age. Any discount may not exceed 15% annually and may not be applied for more than three years from the date the Eligible Person first receives coverage. Each annual discount shall be applied against the premium for that year.

(3) To the extent permitted by federal law, an Issuer desires to apply a surcharge or discount to the premium for a Medicare Supplement Insurance Policy shall support its proposed surcharge or discount in its Rate Filing as provided in 211 CMR 71.12(10)(f).

(4) To the extent permitted by federal law, an Issuer that applies a surcharge or discount to the premium for a Medicare Supplement Insurance Policy shall comply with the refund and credit calculation requirements of 211 CMR 71.12(12).