Committee considers narrow Medigap fix to let displaced enrollees choose equivalent coverage after insurer exit

Senate File 4020, presented by Senator Wicklund on March 17, would allow Minnesotans involuntarily displaced when a Medicare‑supplement (Medigap) insurer leaves the market to choose an equivalent coverage tier—such as an extended basic plan—during the next open enrollment period.

Wicklund said the proposal responds to an observed problem in which some enrollees affected by a carrier insolvency or exit were limited by statute to selecting only a basic plan even though they previously had broader coverage. The sponsor characterized the change as narrow and targeted to those directly affected by an insurer’s exit.

Thomas Elnis (AARP Minnesota) told the committee the amendment is limited to affected enrollees and protects consumer choice; he urged support to prevent older Minnesotans from being forced into substantially different coverage. Seamus Dolan, director of government relations for Blue Cross and Blue Shield of Minnesota, cautioned that the Medicare supplement market is under stress—citing insurer exits and double‑digit cost increases—and urged care in adding new requirements that could raise premiums or destabilize carriers.

Senator Wicklund said the amendment targets approximately 2,500 enrollees impacted when a carrier left the market and would allow them to select equivalent coverage in the 2027 open‑enrollment period. The committee laid SF 4020 over for further consideration.