LEGISLATION AIMED AT PROTECTING MAINE’S VULNERABLE CITIZENS BECOMES LAW

AUGUSTA – Senate Democratic Leader Barry Hobbins of Saco sponsored a bill this legislative session that would extend the right for an insured person to designate a third party to receive notice of cancellation of an insurance policy.

The amended bill (LD 313) received unanimous support from the Maine Legislature and was recently signed in to Public Law by the Governor.

“I applaud the favorable support for this bill,” said Senator Hobbins. “It is important that we do all that we can to protect Maine citizens. By asking insurance companies to take an extra step, many of our most vulnerable citizens will be protected against the devastating consequences of a lapsed or cancelled insurance policy.”

The new law will protect those suffering from cognitive impairment or functional incapacity, including early forms of dementia, from losing coverage for nonpayment of a premium due to their condition. The law provides the ability to reinstate health, life, and Medicare supplement insurance policies in this occurrence.

It is estimated that about 30,000 people in Maine are affected by Alzheimer’s and thousands more have other forms of dementia. It is also estimated that 1 in 8 Baby Boomers turning 65 will develop Alzheimer’s, according to the Maine Association of Area Agencies on Aging.

One of the first symptoms of Alzheimer’s disease is financial difficulty due to damage in the part of the brain that controls reason and abstract thought. Other key signs of Alzheimer’s and other dementia are memory loss, loss of abstract thinking and poor or decreased judgment.

Senator Hobbins added, “This is a growing problem and I am pleased that we were able to create additional protections for those that need them the most.”