If a group Medicare Supplement policy is terminated without replacement, what must the insurer provide?

When a group Medicare Supplement policy is terminated without replacement, the insurer is required to provide an offer of conversion to individual coverage. This is to ensure that individuals who were previously covered under the group policy have the opportunity to continue their health insurance without a lapse in coverage.

The conversion option allows the insured to transition to an individual Medicare Supplement policy, which is important as losing group coverage can significantly impact an individual’s healthcare access and financial security. Insurers must facilitate this process to protect consumers and maintain continuity of care, thus adhering to the regulations set forth in Arizona Insurance Laws concerning Medicare Supplement policies.

The other options do not align with the requirements under the law. For instance, while a refund of all premiums paid may seem reasonable in some contexts, it does not address the immediate need for continued coverage. Similarly, a comprehensive health assessment and an application for a new group policy do not provide the essential coverage transition that former group policyholders require upon termination of their policy.