New Guaranteed Issue Scenario for Medi-Pak Supplement
Beginning July 1, 2018, Arkansas Blue Cross and Blue Shield will offer at least one standardized Medicare supplement plan for individuals who qualify for Medicare due to a disability. The Arkansas Insurance Department recently amended AID Rule 27, which requires carriers to make Medigap policies available to Arkansans under age 65 who are on Medicare due to disability. This new rule will take effect July 1 for Arkansas residents who qualify for Medicare due to a disability on or before that date.
The amended rule resulted in two new guaranteed issue scenarios:
- Initially, July 1, 2018, individuals currently under age 65 who receive Medicare due to disability will be given a six-month open enrollment period to enroll in offered plans (all carriers)
- Anyone under age 65 and new to Medicare after July 1, 2018, will have a six-month period around their Medicare Part A and Part B date to enroll in a plan
Beginning June 1 (for July 1 effective dates), Arkansas Blue Cross will allow applications to be submitted for a new Medi-Pak plan, Plan B. The new Arkansas Blue Cross plan, Plan B, was designed for these two new scenarios. Here is the updated Medi-Pak GI Cheat Sheet where we have added this new under-65 scenario. Please note that these two new guaranteed issue scenarios have no impact on the existing options for under-65 disabled members losing fully insured Arkansas Blue Cross or Health Advantage plans. Nor does it impact the OEP available to these beneficiaries when they turn 65.
We will not be paying commissions for this new Plan B offering. An updated commission schedule will be sent to agency owners in May noting the Plan B commission exception. This exception only applies to the new Plan B with an effective date of July 1, 2018.
Beginning on or around June 1, Medi-Pak Supplement Kits will have a trifold insert that explains how one under 65 and disabled interested in learning more about and applying for Plan B can do so through our website. Please note, you do not have to destroy your existing Medi-Pak brochures and materials. Existing 2018 materials and applications are valid through the end of the year.