State RegulationsMA specificDifficulty 2/5
Why does Massachusetts prescribe uniform benefit standards for Medicare supplement policies under 211 CMR 71.08?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The benefit standards in 211 CMR 71.08 exist to make Medicare supplement shopping intelligible. Because every policy must conform to the standardized designs the Massachusetts Division of Insurance prescribes, an applicant comparing two carriers' offerings is comparing identical benefit structures and can focus on price and service rather than untangling nonstandard coverage. Standardization is the backbone of the Medicare supplement market's consumer protections in Massachusetts.
Why the other options are wrong
- B) Unique, freeform benefit designs are exactly what the standardization rule prevents; conformity to the prescribed designs is mandatory.
- C) Massachusetts Medicare supplement rules forbid conditioning coverage or benefits on health status or claims experience; benefit designs are standardized, not risk-scaled.
- D) Benefit levels do not float with the insurer's claims budget; the policy delivers the standardized design it was issued with under 211 CMR 71.08.
Memory hook
Same skeleton in every med supp policy — that's what makes shopping fair.