2206.1No policy or certificate may be advertised, solicited or issued for delivery in the District as a Medicare supplement policy or certificate unless it meets or exceeds the following minimum standards.
2206.2The standards contained in subsections 2206.3 through 2206.13 are minimum standards and do not preclude the inclusion of other provisions or benefits which are not inconsistent with these standards.
2206.3The following General Standards apply to Medicare supplement policies and certificates and are in addition to all other requirements of this chapter.
2206.4A Medicare supplement policy or certificate shall not:
(a) Exclude or limit benefits. for losses incurred more than six (6) months from the effective date of coverage because it involved a preexisting condition; and(b) Define a preexisting condition more restrictively than a condition for which medical advice was given or treatment was recommended by or received from a physician within six (6) months before the effective date of coverage.2206.5A Medicare supplement policy or certificate shall not indemnify against losses resulting from sickness on a different basis than losses resulting from accidents.
2206.6A Medicare supplement policy or certificate shall provide that benefits designed to cover cost sharing amounts under Medicare will be changed automatically to coincide with any changes in the applicable Medicare deductible, co-payment, or coinsurance amounts. Premiums may be modified to correspond with such changes.
2206.7A "noncancellable," "guaranteed renewable," or "noncancellable and guaranteed renewable" Medicare supplement policy shall not:
(a) Provide for termination of coverage of a spouse solely because of the occurrence of an event specified for termination of coverage of the insured, other than the nonpayment of premium; or(b) Be cancelled or nonrenewed by the issuer solely on the grounds of deterioration of health.2206.8Except as authorized by the Commissioner, an issuer shall neither cancel nor nonrenew a Medicare supplement policy or certificate for any reason other than nonpayment of premium or material misrepresentation.
2206.9If a group Medicare supplement insurance policy is terminated by the group policyholder and not replaced as provided in subsection 2206.3(h), the issuer shall offer certificate holders an individual Medicare supplement policy and shall offer certificate holders at least the following choices:
(a) An individual Medicare supplement policy currently offered by the issuer having comparable benefits to those contained in the terminated group Medicare supplement policy; and(b) An individual Medicare supplement policy which provides only such benefits as are required to meet the minimum standards as defined in subsection 2207.14 of this chapter.2206.10If membership in a group is terminated, the issuer shall:
(a) Offer the certificate holder such conversion opportunities as are described subsection 2206.9; or(b) At the option of the group policyholder, offer the certificate holder continuation of coverage under the group policy.2206.11If a group Medicare supplement policy is replaced by another group Medicare supplement policy purchased by the same policyholder, the issuer of the replacement policy shall offer coverage to all persons covered under the old group policy on its date of termination. Coverage under the new group policy shall not result in any exclusion for preexisting conditions that would have been covered under the group policy being replaced.
2206.12Termination of a Medicare supplement policy or certificate shall be without prejudice to any continuous loss which commenced while the policy was in force, but the extension of benefits beyond the period during which the policy was in force may be predicated upon the continuous total disability of the insured, limited to the duration of the policy benefit period, if any, or to payment of the maximum benefits. Receipt of Medicare Part D benefits will not be considered in determining a continuous loss.
2206.13If a Medicare supplement policy eliminates an outpatient prescription drug benefit as a result of requirements imposed by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, approved December 8, 2003 (108 P.L. 173; 117 Stat. 2066), the modified policy shall be deemed to satisfy the guaranteed renewal requirements of this section.
2206.14The following Minimum Benefit Standards shall apply to Medicare supplement policies or certificates.
(a) Coverage of Part A Medicare eligible expenses for hospitalization to the extent not covered by Medicare from the sixty-first (61st) day through the ninetieth (90th) day in any Medicare benefit period;(b) Coverage for either all or none of the Medicare Part A inpatient hospital deductible amount;(c) Coverage of Part A Medicare eligible expenses incurred as daily hospital charges during use of Medicare's lifetime hospital inpatient reserve days;(d) Upon exhaustion of all Medicare hospital inpatient coverage including the lifetime reserve days, coverage of ninety percent (90%) of all Medicare Part A eligible expenses for hospitalization not covered by Medicare subject to a lifetime maximum benefit of an additional 365 days;(e) Coverage under Medicare Part A for the reasonable cost of the first three (3) pints of blood (or equivalent quantities of packed red blood cells, as defined under federal regulations) unless replaced in accordance with federal regulations or already paid for under Part B;(f) Coverage for the coinsurance amount of Medicare eligible expenses under Part B regardless of hospital confinement, or in the case of hospital outpatient department services paid under a prospective payment system, the copayment amount, subject to a maximum calendar year out-of-pocket amount equal to the Medicare Part B deductible ($100); and(g) Effective January 1, 1990, coverage under Medicare Part B for the reasonable cost of the first three (3) pints of blood (or equivalent quantities of packed red blood cells, as defined under federal regulations), unless replaced in accordance with federal regulations or already paid for under Part A, subject to the Medicare deductible amount.D.C. Mun. Regs. tit. 26, r. 26-A2206
Final Rulemaking published at 46 DCR 10175 (December 17, 1999); as amended by Final Rulemaking published at 50 DCR 4166 (May 30, 2003); as amended by Final Rulemaking published at 50 DCR 5882 (July 25, 2003); as amended by Final Rulemaking published at 53 DCR 2955(April 14, 2006); as amended by Final Rulemaking published at 56 DCR 8840 (November 13, 2009), incorporating text of Proposed Rulemaking published at 56 DCR 7661 (September 25, 2009)Authority: Sections 4, 5, 6, 9, and 11 of the Medicare Supplement Insurance Minimum Standards Act of 1992, effective July 22, 1992 (D.C. Law 9-170; D.C. Official Code §§ 31-3703, 31-3704, 31-3705, 31-3708 and 31-3710 (2001)), and section 4 of Department of Insurance and Securities Regulation Establishment Act of 1996, effective May 21 , 1997 (D.C. Law 11-268; D.C. Official Code § 31-103 (2009 Supp.))