New Med Supp Regulatory Updates (Delaware and Indiana)
Delaware recently approved legislation impacting Medicare Supplement insurance.
Senate Bill 71 - Effective January 1, 2026
Insurers must offer Med Supp policyholders an annual OE period beginning 30 days prior to the individual's birthday and ending 30 days after, where the individual can purchase any policy made available by any insurer that offers the same or lesser benefits as the current coverage. The issuer may not deny or condition the issuance or discriminate in pricing based on health status or claims history and may not impose exclusions based on a pre-existing condition.
Insurers must notify individuals at least 30 days but no more than 60 days prior to the commencement of this annual open enrollment period, and include:
dates on which the OE period begins and ends
any modification of benefits or adjustment of premiums for current policy
A person enrolled in a MA plan may cancel their existing plan and enroll in a Med Supp policy during Medicare OE periods. The issuer may not deny or condition the effectiveness of the Med Supp policy being offered. The issuer is not prevented from rating for individual risk or applying a pre-existing condition limitation.
Indiana’s Department of Insurance sent an email notification on September 11, 2025 regarding the Med Supp commission cap.
IC 27-8-13-9.5(d) capped producer commission or other compensation at 2% of the premium for a Med Supp policy issued to an individual eligible for and enrolled in Medicare by reason of disability. Pub. L. 28-2024 added a sunset provision which expired IC 27-8-13-9.5 on January 1, 2025. Med Supp issuers should look to existing Indiana administrative rules under 760 IAC 3-13 for permitted compensation arrangements. No issuer shall provide, and no agent or producer shall receive, compensation for the sale of any Med Supp policy to a person that differs from the compensation that applies to the sale of any Med Supp policy to any other person because of the age, health status, claims experience, receipt of health care, or medical condition of that person.
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