The National Association of Insurance Commissioners’ model for a Medicare supplement has been adopted by the Centers for Medicare and Medicaid Services.

A notice was published in the Federal Register April 24, saying the Medigap model approved by the NAIC in March 2007 is the “applicable NAIC Model Regulation” for purposes of applying the Medicare Improvements for Patients and Providers Act of 2008.

In addition, Medicare supplement insurers cannot force people to undergo genetic tests, except for research purposes or for deciding whether to pay claims, and they cannot use genetic information for underwriting or pricing of coverage, according to the statement signed by Charlene Frizzara, acting administrator, and Charles E. Johnson, acting secretary, at the CMMS. These genetic testing changes take effect for policies after May 21.

The NAIC’s Medicare Supplement Insurance Minimum Standards Model Act updated its 1979 Medicare supplement standards by eliminating some Medicare supplement plans and by requiring insurers to offer more than one plan if they want to provide a basic Medicare Supplement A plan, according to the Federal Register notice. The latest model eliminates some Medicare supplement plans, and it also requires carriers that want to offer the no-frills Medicare Supplement Plan A option to also offer a Plan C or Plan option.

Hospice benefits are also now included in all Medicare Supplement plans, while “preventive and at-home recovery” benefits have been eliminated. Those aspects of the plans were seen by the CMMS as duplicating benefits included in the physician and outpatient services benefits package under Medicare Part B.

Medigap policies taking effect starting June 1, 2010, must comply with the changes.