SACRAMENTO - It will now be easier for seniors and the disabled to get supplemental health-care coverage called "medigap" that only a half million Californians are enrolled in today. Senator Jackie Speier applauded the governor for signing her bill, SB 375, which will help many people get additional health-care coverage, including more hospital days, out-of-pocket costs for routine check-ups, and mental-health benefits.

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"Seniors and the disabled will soon have new health coverage options now that the Governor has signed SB 375 into law," State Senator Jackie Speier announced today.

These groups often need to buy additional health insurance to augment basic health-care coverage they receive through Medicare. These supplemental health insurance plans are commonly known as "Medigap plans" because they fill in the "gaps" in health-care coverage that would often be unaffordable for these consumers without them.

"I am pleased that Governor Schwarzenegger signed this important legislation," said Speier (D-San Francisco/San Mateo). "Seniors and disabled individuals know that basic Medicare covers only about 50 percent of their out-of-pocket medical costs, and Medigap plans are an important way to cover the rest. California has a long tradition of lowering barriers to Medigap plans for our most at-risk populations, and this measure builds on that tradition."

SB 375 expands access to Medicare supplemental health insurance by creating "open enrollment" periods during which Medigap insurers could not deny coverage based on the applicant's existing medical condition.

Starting January 1, 2007, senior and disabled Medicare beneficiaries will have greater access to supplemental coverage if they lose Medi-Cal coverage or if their existing Medicare plans reduce benefits. The bill also eliminates a loophole in the law that has allowed several Blue Cross Medigap plans an exemption from offering open enrollment periods. In response to concerns brought to Senator Speier's attention by constituents, SB 375 also prohibits insurers from asking for any health information from applicants during open enrollment.

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Source: American Chronicle