Final answer:
Both the policyholder and the new insurer must sign when replacing a Medicare supplement insurance policy. The individual mandate of the ACA requires individuals to have insurance or face a penalty.
Step-by-step explanation:
When a Medicare supplement insurance policy is being replaced, it is generally required that both the policyholder and the new insurer sign off on the replacement policy. This ensures that the policyholder is making an informed decision and that the new insurer is agreeing to take on the policy. It’s important for the policyholder to fully understand the terms and benefits of the new policy compared to the old one before making the change.
The individual mandate provision of the 2010 U.S. healthcare reform, commonly referred to as the Affordable Care Act (ACA), requires everyone to have insurance or pay a penalty, unless they qualify for an exemption. The provision's intent was to expand healthcare coverage and reduce the overall costs of healthcare by ensuring that more people contribute to the insurance pool.