Dupage Policy Journal

State Sen. Laura Murphy (D-Des Plains) proposed legislation that would allow Medicare participants the opportunity to switch their plans without getting hit with less favorable terms. 

Murphy's legislation would create a yearly open enrollment period that would last 45 days for Medicare supplement policyholders between 65 and 75 years old that would commence on the policyholder's birthday.

"If their supplemental plan rates go up, many older adults are denied the chance to switch to a less expensive plan because of a pre-existing condition. It’s time to give older Illinoisans the freedom to seek lower costs elsewhere," Murphy said in a May 6 Facebook post.

The open enrollment period for policyholders would allow them to transition to a new supplemental policy under their insurance company without having to worry about being denied, underwritten, or charged based on their health condition.  

The bill reflects a law in California called the "Birthday Rule," which allows those with Medicare Supplemental Plans to switch to a different plan within 30 days of their birthday as long as the plan they are transitioning to is equal to or lesser than their current plan. Other states hold similar open policy periods around a policy holder's birthday.

The Insurance Committee passed Senate Bill 147, and it heads to the Senate for further consideration.