This content is brought to you by NAIFA's Medicare Collective.

Birthday rule legislation was introduced to address a significant gap in the Medicare Supplement (Med Supp) policy market. Traditionally, Medicare Advantage clients have the opportunity to shop and switch plans annually during the open enrollment period starting October 15 and running through December 7. However, this flexibility was not available to Med Supp policyholders, putting them at a disadvantage as they aged and their health potentially deteriorated.

To mitigate this issue, certain states have enacted the birthday rule. This legislation allows Med Supp policy owners the opportunity to shop for plans that better suit their needs and budget, without the fear of being declined due to health reasons. Essentially, it aims to provide a level playing field, ensuring that Med Supp policyholders can also benefit from competitive rates.