New York Assembly Bill A07157

New York 2025-2026 Regular Session

• Introduced: 3/21/25
• Refer: 3/21/25
• Refer: 1/7/26

Caption

Requires insurers offering renewal of certain Medicare supplemental insurance policies or providing notification of a change in premiums of such policies to notify policyholders of the availability of policies offered by such insurer with similar benefits at a comparable premium or the ability of such policyholder to purchase a different policy without the pre-existing condition waiting period; applies to policies for which such insurers no longer accept new contracts but continue to renew for existing policyholders.

Summary

A07157 would require insurers and certain nonprofit health insurance corporations that renew Medicare supplemental insurance coverage in a “closed block” to give written notice to affected policyholders when premiums or benefits change, or when a renewal is offered. The notice must be in a form approved by the Superintendent of Financial Services and must explain two key rights: first, that the policyholder may be able to buy a different policy without a pre-existing condition waiting period if they have had continuous coverage for the prior six months; and second, that the insurer may offer another policy or contract with similar benefits at a lower premium. The bill also requires the notice to include a toll-free phone number and website where the policyholder can learn about similar coverage offered by other insurers, article 43 corporations, or article 44 organizations. In effect, the bill is designed to make it easier for Medicare supplement enrollees in closed blocks to compare options and potentially switch to more affordable coverage when rates rise or benefits change.

Impact

The bill would amend the Insurance Law by adding new disclosure requirements in sections 3218-a and 4331, applying both to insurers and to corporations organized under the relevant insurance provisions. It would not directly change benefit mandates or premium-setting rules, but it would impose a new consumer-notice obligation tied to renewals and rate or benefit changes for closed-block Medicare supplemental policies. The law would apply prospectively to policies issued, renewed, modified, or altered on or after the effective date.

Sentiment

Based on the bill text and available context, the measure appears consumer-protection oriented and likely intended to help older policyholders navigate Medicare supplement market changes. There is no recorded committee debate or vote history in the provided materials, so no formal opposition or support is documented here. The overall thrust of the bill suggests a favorable policy posture toward transparency and consumer choice.

Contention

The main potential point of contention is the added compliance burden on insurers and related entities, which must provide standardized notices and maintain accurate information about alternative coverage options. Another possible issue is whether the required disclosures could create confusion for policyholders if they are presented with multiple switching options or if comparable coverage is difficult to identify. No specific objections from legislators, insurers, or consumer advocates are included in the provided record.