16.1.1 Core Benefits
The following six minimum standards apply to all policies designated as Medicare Supplement Insurance.
- The policy must supplement both Part A and Part B of Medicare.
- The policy must automatically adjust its benefits to reflect statutory changes in Medicare.
- The policy must cover all expenses not covered by Part A from the 61st to the 90th day. Furthermore, it must cover the lifetime reserve copayment and must provide full coverage for an additional 365 days after Medicare benefits are exhausted.
- If the policy excludes coverage for preexisting conditions, the exclusion cannot exist for longer than 6 months. That is, no coverage can be denied as a preexisting condition after the policy has been in effect for 6 months.
- Part B expenses not covered by Medicare (that is, the 20% copayment) must be covered by the Medigap policy, up to a maximum of $5,000 per year. However, policies may include a deductible before this benefit becomes payable.
- The policy must include a minimum 30-day free look provision.