Who is responsible for regulating Medicare Supplement insurance?

The responsibility for regulating Medicare Supplement insurance lies with each state’s department of insurance. This is because Medicare Supplement plans, also known as Medigap plans, are standardized by federal law but are sold and underwritten by private insurance companies. Each state has its own set of rules and regulations regarding how these plans must be offered, marketed, and sold. As a result, state departments of insurance oversee the approval of insurance companies and their policies, ensuring that they comply with both federal standards and state laws.

The federal government does provide a framework for Medicare Supplement insurance, including standardizing the benefits of different plans, but it does not regulate the sale or pricing of these plans directly. Medicare itself is responsible for the administration of the Medicare program but does not govern the private insurance market for supplemental coverage. Lastly, while insurance companies must adhere to the regulations set forth by state departments, they are not responsible for the regulation themselves; rather, they operate under the guidelines established by the respective state's insurance department.