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Bill

HB 1603

Requiring guaranteed issue of medicare supplemental coverage to an individual who voluntarily disenrolls from a medicare advantage plan and enrolls in medicare parts A and B.

2025-2026 Regular Session Introduced by April Berg and 6 co-sponsors

Requires insurers to automatically approve Medicare supplemental insurance for people voluntarily switching from Medicare Advantage to traditional Medicare without health underwriting.

Public hearing in the House Committee on Health Care & Wellness at 8:00 AM.
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WeVote Research Nonpartisan
Bill Summary · HB 1603

Legislative bill overview

HB 1603 requires insurance companies to issue Medicare supplemental (Medigap) coverage to individuals who voluntarily leave Medicare Advantage plans and switch to traditional Medicare Parts A and B. Currently, insurers can deny supplemental coverage or charge higher premiums based on health status during these transitions. The bill would eliminate underwriting barriers for these specific switchers.

Why is this important

Medicare Advantage plans have different cost structures and provider networks than traditional Medicare, and some enrollees want to switch but fear being denied affordable supplemental coverage—which helps pay deductibles, copayments, and coinsurance. This protection directly affects seniors' ability to access the coverage tier they prefer without financial penalty. The policy recognizes a genuine gap where switching costs can trap people in plans they want to leave.

Potential points of contention

  • Insurance industry costs: Guaranteed issue requirements remove risk-based pricing, potentially increasing premiums for all Medigap purchasers or reducing insurer participation in the market
  • Moral hazard concerns: Guaranteed acceptance might incentivize people to switch plans opportunistically based on anticipated health expenses rather than genuine plan dissatisfaction
  • Scope questions: Whether this protection should apply only to voluntary disenrollments or also to those involuntarily removed from Medicare Advantage plans, and whether it includes all Medigap plans or only specific tiers

Compiled from official sources — confirm details with the bill’s official record.

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