medicare supplement insurance; ALS; ESRD.

SB1191 - 572R - I Ver

REFERENCE TITLE:
medicare supplement insurance; ALS; ESRD.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1191

Introduced by

Senator
Shope

AN
ACT

amending section 20-1133, arizona
revised statutes; relating to medicare supplement insurance.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 20-1133, Arizona Revised
Statutes, is amended to read:

START_STATUTE
20-1133.

Medicare supplement insurance; early enrollment discounts;
eligibility for additional conditions; applicability

A. The director shall adopt rules necessary to
comply with the requirements of the social security disability amendments of
1980 (P.L. 96-265; 42 United States Code section 1395ss) and any
federal laws or regulations pertaining to that section, so that this state may
retain its full authority to regulate minimum standards for medicare supplement
insurance.

B. For the purposes of this section, an insurer may
file for medicare supplement
insurance
rates that include
an early enrollment discount that will not be considered an attained age rating
structure. An early enrollment discount shall diminish over a period
of time and is only available to enrollees who purchase the plan within the
early enrollment period designated by the insurer. Insurers shall
disclose to all applicants how the early enrollment discount will diminish over
time.

C. Subject to the other limitations provided in this
subsection, a benefit mandated in this title for health insurance policies does
not apply to medicare supplement insurance policies unless the mandated policy
benefit is set forth in rules adopted pursuant to this section or unless the
statute mandating the policy benefit expressly states that it is made
specifically applicable to medicare supplement insurance policies. A
medicare supplement insurance policy may not contain any exclusion for services
provided by any type of properly licensed health care provider if the
provider's services are eligible for medicare reimbursement and if the specific
services in question would be covered by medicare. The scope of
benefits of a medicare supplement policy may not be less than the minimum level
of benefits established by federal law.

D. An insurer that offers medicare
supplement insurance policies in this state to persons who are at least sixty-five
years of age shall also offer medicare supplement insurance policies to persons
who are eligible for and enrolled in medicare due to end-stage renal
disease or amyotrophic lateral sclerosis.� All benefits and coverages that are
available to medicare enrollees who are at least sixty-five years of age
must also be available to medicare enrollees who are under sixty-five
years of age and who are enrolled due to end-stage renal disease or
amyotrophic lateral sclerosis.

E. A medicare enrollee may enroll in
a medicare supplement insurance policy at any time allowed or required by
federal law or within six months after any of the following:

1. Enrolling in medicare part B or
January 1, 2027 for an enrollee who is under sixty-five years of age and
who is eligible for medicare due to end-stage renal disease or
amyotrophic lateral sclerosis, whichever is later.

2. Receiving notice that the enrollee
has been retroactively enrolled in medicare part B due to a retroactive
eligibility decision made by the social security administration.

3. Termination of coverage under a
group health insurance plan.

f. In addition to other enrollment
periods provided by law, a person who is under sixty-five years of age
and who is enrolled in medicare part b due to end-stage renal disease or
amyotrophic lateral sclerosis on the effective date of this AMENDMENT to this
section may apply for coverage under a medicare supplement insurance policy on
or after December 2, 2025 and before June 1, 2027.� If the person is unable to
submit an application for coverage on or after December 2, 2025 and before June
1, 2027 because the application was not available and the person requested the
application during that time period, the person may apply for coverage WITHIN
six months after the date the application initially becomes available.

g. An insurer may not charge an
enrollee who qualifies for medicare due to end-stage renal disease or
amyotrophic lateral sclerosis and who is under sixty-five years of age a
premium rate for a medical supplemental insurance benefit plan offered by the
insurer that exceeds the insurer's rate schedule that is filed with the
department for that PLAN and that is charged to enrollees who are sixty-five
years of age.

D.

H.
Notwithstanding
any other provision of this title, rules adopted pursuant to this section apply
to insurance provided under disability insurance policies, under subscription
contracts of hospital, medical, dental or optometric service corporations,
under certificates of fraternal benefit societies, under evidences of coverage
of health care services organizations and under coverages issued by any other
insurer, which policies, contracts, certificates, membership coverages,
evidences of coverage and coverages are delivered or issued for delivery in
this state on or after the effective date of rules adopted pursuant to
subsection A of this section. In adopting the rules required by
subsection A of this section, the director shall prescribe an effective date of
the rules that will allow insurers sufficient time to bring their forms and
practices into compliance with the requirements of the rule.
END_STATUTE