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Special coverage: Medicare

Medigap bill cuts through Fla. rules

The measure, bound for Crist, exempts the out-of-state insurers from regulation.

By Tom Zucco, Times Staff Writer
Published April 27, 2007

A bill that allows out-of-state businesses to offer supplemental Medicare insurance, or Medigap, policies to their retirees living in Florida through unregulated insurance companies was passed by lawmakers Thursday and is headed for Gov. Charlie Crist's desk.

But state regulators still hold hope for a veto, saying the measure could set up seniors to get stung.

Sponsored by Rep. D. Alan Hays, R-Umatilla, and Sen. Carey Baker, R-Eustis, the bill HB 97 would allow companies that have at least 50 employees to sell Medicare supplement policies issued outside of Florida that cover Florida residents to be exempt from any state regulation starting July 1.

Those regulations include rate-setting guidelines, and requirements that companies that sell Medigap policies return any unearned portion of premiums if policies are canceled.

The measure was pushed by lobbyists for Global Life and Accident Insurance Co., an Oklahoma City company that Office of Insurance Regulation chief of staff David Foy said failed six times last year to get authorization to sell policies in Florida.

Crist, who has reportedly questioned whether the bill is consumer-friendly, has asked regulators for an analysis, Foy said.

Proponents of the bill argue that it would provide coverage where none may be available. But regulators say that's not the case.

There is an opportunity to buy supplemental Medicare insurance from 40 active companies licensed and regulated in Florida, Foy said, and seniors can get coverage that includes consumer protections.

"People (who buy the new policies) will retire thinking that they have a program equal to or better than Medicare supplemental insurance," said Bob Archer, long term care specialist for the state's health insurance assistance program for the elderly. "But this is just an end run (by Global Life) around years of battling with the supplemental carriers.

"This should be an easy bill for the governor to veto."

Tom Zucco can be reached at zucco@sptimes.com or (727) 893-8247.

[Last modified April 27, 2007, 07:42:03]