AB 250 — Revises provisions relating to insurance to supplement Medicare. (BDR 57-142)

(ReprintedAssembly withBill amendmentsNo. adopted on April 14, 2021) FIRST REPRINT A.B.

250250–Assemblywomen AJauregui; SSEMBLY BILL N O.

250–and ASSEMBLYWOMENHardy JAUREGUICHAPTER.......... ;

HARDY M ARCH 12, 2021 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to insurance to supplement Medicare.

(BDR 57-142) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

(NOTCREQUESTED BAFFECTEDLOCALGOVERNMENT ) ~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

§§ 1395 et seq.) Existing federal regulations define the term “Medicare supplemental policy” to mean a policy offered by a private insurer that is primarily designed to pay expenses not reimbursed under Medicare because of certain limitations under Medicare.

(42(42es adopt regulations relating to the form, content and sale of policies of insurance which provide for the payment of expenses which are not coveredC.F.R. by Medicare, including Medicare supplemental policies.

(NRS§ 687B.430)403.205) SectionsExisting 1,state 3law andauthorizes 4the Commissioner of thisInsurance billto requireadopt anregulations insurerrelating offeringto a Medicare supplemental policy or the Publicform, Employees’content Benefitsand Programsale orof anypolicies localof governmentinsurance thatwhich providesprovide a similar policy for publicthe employeespayment toof offerexpenses anwhich openare enrollmentnot period for persons covered by suchMedicare, policies,including duringMedicare whichsupplemental thepolicies. insurer or governmental entity is prohibited from placing certain restrictions on the issuance of such a policy.

Section(NRS 2687B.430) ofSections this1, bill3 hospital and medical4 of Employees’ Benefits Program or dentalany servicelocal corporationsgovernment that issueprovides a similar Public policy for public employees to offer an open enrollment period for persons covered by such policies.policies, during which the insurer or governmental entity is prohibited from placing certain restrictions on the issuance of such a policy.

-Section *AB250_R1*2 –of 2this –bill THEmakes PEOPLEa OFconforming THEchange STATEto OFapply NEVADA,the REPRESENTEDprovisions INof SENATEsection AND1 ASSEMBLY,to DOnonprofit ENACThospital ASand FOLLOWS:medical or dental service corporations that issue such policies.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

An insurer that issues a Medicare supplemental policy shall offer to a person currently insured under any such policy an annual open enrollment period commencing with the first day of the birthday month of the person and remaining open for at least 60 days thereafter, during which the person may purchase any Medicare supplemental policy made available by the insurer in this State that includes the same or lesser benefits,benefits. including, without limitation, innovative benefits, as described in 42 U.S.C.

§Innovative 1395ss(p)(4)(B),benefits, as thedescribed policyin under42 whichU.S.C. the person is currently insured.

2.§ 1395ss(p)(4)(B), must not be considered when determining whether a Medicare supplemental policy includes the same benefits as or lesser benefits than another such policy.

During- the81st openSession enrollment(2021) period– offered2 pursuant– to2. subsection 1, an insurer shall not deny or condition the issuance or effectiveness, or discriminate in the price of coverage, of a Medicare supplemental policy based on the health status, claims experience, receipt of health care or medical condition of a person described in subsection 1.

During the open enrollment period offered pursuant to subsection 1, an insurer shall not deny or condition the issuance or effectiveness, or discriminate in the price of coverage, of a Medicare supplemental policy based on the health status, claims described in subsection 1.lth care or medical condition of a person 3.

and (b) Any modification to the benefits provided by the policy under which the person is currently insured or adjustment to the pre4.umAspremiums usedcharged infor thisthat section,policy. “Medicare supplemental policy” has the meaning ascribed to it in 42 C.F.R.

4.

As used in this section, “Medicare supplemental policy” has the meaning ascribed to it in 42 C.F.R.

Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the provisions of chapters 679A and 679B of NRS, NRS 686A.010 to 686A.315, inclusive, 687B.010 to 687B.040, inclusive, 687B.070 to 687B.140, inclusive, 687B.150, 687B.160, 687B.180, 687B.200 to 687B.255, inclusive, 687B.270, 687B.310 to 687B.380, inclusive, 687B.410, 687B.420, 687B.430, 687B.500 and chapters 692B,692B,nclusive, 692C, 693A and 696B of NRS, and section 1 of this act, to the - *AB250_R1* – 3 – extent applicable and not in conflict with the express provisions of this chapter.

(a) Adopt and carry into effect a system of group life, accident or health insurance, or any combination thereof, for the benefit of its officers and employees, and the dependents of officers and - 81st Session (2021) – 3 – employees who elect to accept the insurance and who, where necessary, have authorized the governing body to make deductions from their compensation for the payment of premiums on the insurance.

(b) Purchase group policies of life, accident or health insurance, or any combination thereof, for the benefit of such officers andandance, employees, and the dependents of such officers and employees, as have authorized the purchase, from insurance companies authorized to transact the business of such insurance in the State of Nevada, and, where necessary, deduct from the compensation of officers and employees the premiums upon insurance and pay the deductions upon the premiums.

Any contract with an independent administrator must be approved by the Commissioner of Insurance as to the reasonableness of administrative charges in relation to contributions collected and benefitsthis provided.act, 689B.030 to 689B.050, inclusive, 689B.287 and 689B.500 apply to coverage provided pursuant to this paragraph, except that the provisions of NRS 689B.0378, 689B.03785 and 689B.500 only apply to coverage for active officers and employees of the governing body, or the dependents of such officers and employees.

The provisions of NRS 687B.408, section 1 of this act, 689B.030 to 689B.050, inclusive, 689B.287 and 689B.500 apply to coverage provided pursuant to this paragraph, except that the provisions of NRS 689B.0378, 689B.03785 and 689B.500 only - *AB250_R1* – 4 – apply to coverage for active officers and employees of the governing body, or the dependents of such officers and employees.

If the amount of the deductions from compensation - 81st Session (2021) – 4 – required to pay for the group insurance exceeds the compensation to which a trustee is entitled, the difference must be paid by the trustee.

In any county in which a legal services organization exists, the governing body of the county, or of any school district, municipal corporation, political subdivision, public corporation or other local governmental agency of the State of Nevada in thetheion or county, may enter into a contract with the legal services organization pursuant to which the officers and employees of the legal services organization, and the dependents of those officers and employees, are eligible for any life, accident or health insurance provided pursuant to this section to the officers and employees, and the dependents of the officers and employees, of the county, school district, municipal corporation, political subdivision, public corporation or other local governmental agency.

(a) Must be submitted to the Commissioner of Insurance for approval not less than 30 days before the date on which the contract is to(b) Does not become effective.effective unless approved by the Commissioner.

(b) Does not become effective unless approved by the Commissioner.

- *AB250_R1* – 5 – 6.

287.04335 If the Board provides health insurance through a plan of self-insurance, it shall comply with the provisions of NRS 687B.409, section 1 of this act, 689B.255, 695G.150, 695G.155, 695G.160, 695G.162, 695G.164, 695G.1645, 695G.1665, 695G.167, 695G.170 to 695G.174, inclusive, 695G.177, 695G.200 to 695G.230, inclusive, 695G.241 to 695G.310, inclusive, and - 81st Session (2021) – 5 – 695G.405, in the same manner as an insurer that is licensed pursuant to title 57 of NRS is required to comply with those provisions.

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