State RegulationsMI specificDifficulty 3/5
A Michigan resident under 65 receives Social Security disability benefits and is enrolled in Medicare Part B. The insurer sells both Medicare supplement policies and major medical coverage in Michigan. What must the insurer offer this applicant?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.3831 requires Michigan insurers that sell major medical coverage to also offer Medicare supplement Plans A and G on a continuously guaranteed issue basis to Medicare-eligible persons under 65. Because this applicant had no prior major medical coverage with the insurer, the insurer may impose a 6-month preexisting-condition waiting period, but it may not refuse to offer the plans.
Why the other options are wrong
- B) The under-65 mandate covers Plans A and G only, not every standardized plan, and a preexisting waiting period is permitted in these circumstances.
- C) Plan A alone understates the mandate, and underwriting is not allowed for the guaranteed issue offer.
- D) Michigan extends guaranteed issue rights to Medicare beneficiaries under 65; the rights are not limited to age 65.
Memory hook
Under 65 with Medicare? Insurers selling major medical must offer Plans A and G; a 6-month wait is the allowed catch.