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Life Health > Health Insurance > Life Insurance Strategies

Illinois Pans Medicare Commission Strategy

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Illinois Insurance Director Michael McRaith wants Medicare supplement insurers to comply more effectively with a new state anti-discrimination law.

Starting June 1, Illinois required insurers in the Medigap market to sell Medigap coverage to disabled Medicare beneficiaries under age 65 on a guaranteed-issue basis.

Some insurers seem to be using commission schedules, such as schedules that pay a 0% commission to agents who sell coverage to disabled Medicare beneficiaries, to avoid the requirements of the law, McRaith writes in Commissioner’s Bulletin 2008-03.

Under Illinois law, “companies may not establish procedures designed to circumvent the requirements of [the law] by any means, including setting commission schedules for the under 65 population made eligible for Medicare supplement policies due to disability that are different than commissions provided to agents selling such policies to persons that become eligible for Medicare due to age,” McRaith writes.


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