State RegulationsMA specificDifficulty 1/5
How are Medicare supplement premium rates structured in Massachusetts, and what surcharge may apply to a late enrollee?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.G.L. c. 176K, § 7(a) requires Medicare supplement coverage in Massachusetts to be community rated — the premium is not keyed to an individual's age, health, or claims — and § 7(c) through (d) permit only a limited late-enrollment or plan-upgrade surcharge: at most 15 percent annually and for no more than 3 years. Together with the guaranteed-issue rule of § 3, community rating ensures that a late enrollee pays a bounded surcharge rather than facing denial or open-ended pricing.
Why the other options are wrong
- B) Medicare supplement rates are not experience rated in Massachusetts; M.G.L. c. 176K, § 7(a) requires community rating, and the surcharge ceiling is 15 percent for up to 3 years.
- C) The community-rated structure is correct, but the surcharge is not open-ended; § 7 caps it at 15 percent annually with a 3-year maximum duration.
- D) Individual health underwriting is barred in this line; guaranteed issue and community rating under M.G.L. c. 176K § 3 and § 7 foreclose health-based pricing.
Memory hook
Community rated, and a latecomer pays at most 15 percent more for at most 3 years.