icyholder the option of replacing such policy at the time
of the policyholder’s next renewal period with a medicare
supplemental policy which meets the requirements of para-
graph (1)(C) and all other applicable requirements of this
subsection.’’; and
(4) in paragraph (7)(A) (as redesignated by
paragraph (2)), by inserting ‘‘or the requirements of
paragraph (1)(C) or paragraph (6)’’ after ‘‘the loss
ratio requirements of this subsection’’.
SEC. 3. EFFECTIVE DATE.
(a) NAIC STANDARDS.—If, within 6 months after
the date of the enactment of this Act, the National Asso-
ciation of Insurance Commissioners (in this subsection re-
ferred to as the ‘‘NAIC’’) makes changes in the 1991
NAIC 
Model 
Regulation 
(as 
defined 
in 
section
1882(p)(1)(A) of the Social Security Act) to incorporate
the additional requirements imposed by the amendments
made by this Act, section 1882(g)(2)(A) of such Act shall
be applied in each State, effective for policies issued to
policyholders on and after the date specified in subsection
(c) (or, with respect to the requirements imposed by sec-
tion 1882(r)(6) of such Act, effective as of the date speci-
fied in subsection (c) for policies issued before such date),
as if the reference to the Model Regulation adopted on
June 6, 1979, were a reference to the 1991 NAIC Model
Regulation (as so defined) as changed under this para-
graph (such changed Regulation referred to in this section
as the ‘‘1995 NAIC Model Regulation’’).
(b) SECRETARY STANDARDS.—If the NAIC does not
make changes in the 1991 NAIC Model Regulation (as
so defined) within the 6-month period specified in sub-
section (a), the Secretary of Health and Human Services
(in this section as the ‘‘Secretary’’) shall promulgate with-
in 90 days of the end of such period a regulation and sec-
tion 1882(g)(2)(A) of the Social Security Act shall be ap-
plied in each State, effective for policies issued to policy-
holders on and after the date specified in subsection (c)
(or, with respect to the requirements imposed by section
1882(r)(6) of such Act, effective as of the date specified
in subsection (c) for policies issued before such date), as
if the reference to the Model Regulation adopted in June
6, 1979, were a reference to the 1991 NAIC Model Regu-
lation (as so defined) as changed by the Secretary under
this subsection (such changed Regulation referred to in
this section as the ‘‘1995 Federal Regulation’’).
(c) DATE SPECIFIED.—
(1) IN GENERAL.—Subject to paragraph (2),
the date specified in this subsection for a State is
the earlier of—
(A) the date the State adopts the 1995
NAIC Model Regulation or the 1995 Federal
Regulation; or
(B) 1 year after the date the NAIC or the
Secretary first adopts such regulations.
(2) ADDITIONAL
LEGISLATIVE
ACTION
RE-
QUIRED.—In the case of a State which the Secretary
identifies, in consultation with the NAIC, as—
(A) requiring State legislation (other than
legislation appropriating funds) in order for
medicare supplemental policies to meet the
1995 NAIC Model Regulation or the 1995 Fed-
eral Regulation, but
(B) having a legislature which is not
scheduled to meet in 1996 in a legislative ses-
sion in which such legislation may be consid-
ered,
the date specified in this subsection is the first day
of the first calendar quarter beginning after the
close of the first legislative session of the State legis-
lature that begins on or after January 1, 1996. For
purposes of the previous sentence, in the case of a
State that has a 2-year legislative session, each year
of such session shall be deemed to be a separate reg-
ular session of the State legislature.
Æ