[Congressional Record Volume 158, Number 85 (Thursday, June 7, 2012)]
[Senate]
[Pages S3840-S3841]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY:
  S. 3271. A bill to provide all Medicare beneficiaries with the right 
to guaranteed issue of a Medicare supplemental policy; to the Committee 
on Finance.
  Mr. KERRY. Mr. President, approximately one in five Medicare 
beneficiaries--or 9 million people--purchase a Medigap supplemental 
insurance policy to protect against high out-of-pocket costs and to 
make health care costs more predictable. Current law includes a 
`guaranteed issue right' to Medigap for beneficiaries age 65 or older, 
which means they cannot be denied Medigap coverage or charged a higher 
Medigap premium because of their medical condition.
  Unfortunately, current law discriminates against Medicare 
beneficiaries with disabilities who are under age 65, as well as 
beneficiaries with kidney failure, End Stage Renal Disease or ``ESRD'' 
by denying them the same right that seniors have to guaranteed issuance 
of Medigap policies. This exposes individuals with disabilities and 
kidney failure to substantial out-of-pocket costs and poses a 
significant barrier to health care services. In the absence of equal 
opportunity and access to Medigap policies at the Federal level, 29 
States have enacted guaranteed issue rights to disabled and ESRD 
beneficiaries.
  Individuals with kidney failure are subject to an additional 
discriminatory provision in federal law that prohibits Medicare ESRD 
beneficiaries from joining Medicare Advantage plans. They are the only 
group of Medicare beneficiaries currently denied the same Medicare 
choices as other Medicare beneficiaries.
  Today I am introducing the Equal Access to Medicare Options Act, a 
bill that improves coverage options to Medicare beneficiaries. My 
legislation would eliminate discriminatory treatment in the 
supplemental insurance market, bring more financial stability to 
Medicare beneficiaries with disabilities and ESRD with high out-of-
pocket health care costs, and reduce reliance on Medicaid as the payer 
of last resort. Specifically, it would extend guaranteed issue of 
Medigap policies to all Medicare beneficiaries, including beneficiaries 
with disabilities and ESRD. It would ensure equal access to 
supplemental insurance for all Medicare beneficiaries, regardless of 
age, disability or ESRD status.
  Additionally, my legislation recognizes that Medicare beneficiaries 
need flexibility to adjust their coverage as changes to their plans are 
made. It would give guaranteed issue rights to Medicare Advantage 
enrollees if they decide to switch to traditional Medicare during an 
enrollment period. Today, if a Medicare Advantage enrollee learns of 
premium increases or benefit reduction in their plan, they have the 
option of returning to traditional Medicare but they have no assurance 
they can buy Medigap coverage if they do so.
  The Equal Access to Medicare Options Act would provide guaranteed

[[Page S3841]]

issue to dual-eligibles who lose their Medicaid coverage and find 
themselves in traditional Medicare without the cost protections of 
Medicaid and without supplemental coverage options. Finally, this 
legislation would--for the first time--give beneficiaries with end-
stage renal disease the option of enrolling in Medicare Advantage 
plans.
  I would like to thank the nearly 50 organizations who have been 
integral to the development of the Equal Access to Medicare Options Act 
and who have endorsed it today, including the California Health 
Advocates, Center for Medicare Advocacy, Dialysis Patient Citizens, 
Fresenius Medical Care, Medicare Rights Center, and the National Kidney 
Foundation.
  The Affordable Care Act prohibits discrimination based on health 
status in the private health insurance market, beginning in 2014. It is 
inconsistent and unconscionable for federal law to allow insurers to 
discriminate based on health status in the Medigap market. All 
individuals, regardless of their health status, deserve the same access 
to comprehensive and affordable coverage options.
  The reforms included in this legislation would finally end 
discriminatory Medicare policies in Federal law and would ensure that 
all Medicare beneficiaries regardless of their disability or age have 
equal opportunity and access to affordable Medicare options. I look 
forward to working with my colleagues in the Senate to achieve these 
goals in the context of health care reform.
                                 ______