Close the Medigap Act of 2021

Close the Medigap Act of 2021

This bill (1) expands guaranteed issue rights with respect to Medigap policies (Medicare supplemental health insurance policies), (2) eliminates certain limitations on Medigap policies for newly eligible Medicare beneficiaries, and (3) modifies other provisions related to Medigap policies. (Guaranteed issue rights require that a policy be offered to any eligible applicant without regard to health status.)

Bill 117 HR 4640, also known as the Close the Medigap Act of 2021, aims to address concerns regarding the use of Medigap plans in the Medicare program. The bill seeks to limit the coverage provided by certain Medigap plans, specifically Plans C and F, which currently cover the Medicare Part B deductible.

Under the Close the Medigap Act of 2021, individuals who become eligible for Medicare on or after January 1, 2022, would no longer be able to purchase Medigap Plans C and F. This is in an effort to reduce overutilization of healthcare services by beneficiaries who have no out-of-pocket costs due to these plans covering the Part B deductible.

The bill also includes provisions to ensure that individuals who are already enrolled in Plans C and F are not negatively impacted by the changes. These individuals would be able to keep their current coverage, but would not be able to switch to a different Medigap plan that covers the Part B deductible. Overall, the Close the Medigap Act of 2021 aims to promote cost-sharing among Medicare beneficiaries and reduce unnecessary healthcare spending. It is important to note that this bill is still in the early stages of the legislative process and may undergo changes before potentially becoming law.