New Med Supp Regulations (Texas and Minnesota)

Texas and Minnesota recently approved legislation impacting Medicare Supplement insurance.

Texas - House Bill 2516

Applies to Med Supp plans delivered, issued for delivery, or renewed on or after September 1, 2025:

An entity that offers coverage under a Med Supp plan to individuals over 65 must offer the same coverage to individuals under 65 who are eligible for and enrolled in Medicare by reason of end-stage renal disease or amyotrophic lateral sclerosis.

1. A standardized Plan A, Plan B, or Plan D Med Supp benefit plan must be offered at the same premium rate charged for the plan to an individual 65 years of age. A premium rate for a Med Supp benefit plan, other than Plan A, Plan B, or Plan D, may not exceed 200% of the premium rate charged for the same plan to an individual 65 years of age.

2. Eligible individuals may enroll:

• during the six-month period beginning the first day of the first month the individual becomes enrolled for benefits under Medicare Part B;

• a one-time OE period between December 1, 2025 and June 1, 2026, or if unable to submit during this time period because the application is not available when requested, a 6-month period beginning on the date the application becomes available.

3. During an enrollment period, the entity may not deny or condition the effectiveness, medically underwrite, discriminate in pricing, or impose a waiting period or pre-existing condition limitation.

Minnesota - House Bill 4

Effective August 1, 2026:

1. Creates a new guaranteed issue situation that allows individuals aged 65 to 70 who want to enroll in a Medicare supplement policy outside of their initial open enrollment period to enroll during the Medicare annual open enrollment period without medical underwriting or preexisting condition limitations. The individual may only make this choice once during ages 65 to 70. For these individuals, the guaranteed issue period is the Medicare annual open enrollment period. A penalty applies to individuals who enroll in this manner. The penalty is a 15% addition to premiums and any standard increases in community rate for those who enroll during open enrollment of 2026, and it increases 5% per year, with a maximum penalty of 35% applying for open enrollment 2029 into the future. The penalty will apply for the duration of the policy. Also prohibits insurers from applying a pre-existing condition treatment waiting period for reinstated policies if the enrollee qualifies for the penalty.

2. Requires pre-existing limitations to appear as a separate paragraph of the policy or certificate and be labeled as "pre-existing condition limitations."

3. Reinstates statutory Replacement Notice disclosure language from 2022 related to medical underwriting and preexisting condition coverage.

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