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FOR IMMEDIATE RELEASE |
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State
Rep. Mark Longietti |
  
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Longietti bill on premium refunds endorsed by House Insurance Committee
Pa. lawmaker says bill would address loophole with Medicare Supplement coverage cancellations
HARRISBURG, May 7 – A proposal introduced by Pennsylvania state Rep. Mark Longietti, D-Mercer, that would close a loophole regarding refunds for canceled Medicare Supplement insurance policies, was unanimously endorsed by the state House Insurance Committee this week.
Longietti said the bill (H.B. 1959) would require insurance companies to refund the unused premiums to insured people who cancel their Medicare Supplement policy in favor of other insurance coverage. Longietti said the legislation was prompted by a constituent who contacted his office after learning that state law did not require insurers to provide refunds for unused Medicare Supplement premiums.
"One of my constituents called me and told me about her situation – she canceled her Medicare Supplement coverage for a different, cheaper plan recommended by her insurance agent that would save her almost $1,200 in premiums," Longietti said. "The insurance company refused to refund the unused premium from the canceled policy, around $800, and after seeking advice from the Insurance commissioner, she was told that nothing could be done because there was no law that required the refund.
"This legislation would correct this problem and close that loophole, allowing Medicare Supplement policy holders to have a choice in seeking cheaper insurance coverage without losing money," he added.
Longietti said he has been working with the state Insurance Department regarding this legislation, which now goes to the full House for consideration.
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