Final answer:
Oregon's birthday rule allows Medigap policyholders to switch to a different plan with the same or less benefits within 30 days of their birthday each year without medical underwriting. This is part of the wider health insurance reforms in the U.S. aimed at improving healthcare accessibility and affordability.
Step-by-step explanation:
Oregon's birthday rule allows Medigap policyholders to make changes to their Medigap policies. The rule enables those who already have a Medigap policy to switch to a different Medigap plan with the same or lesser benefits within 30 days following their birthday each year, without the need for medical underwriting or being denied for preexisting conditions.
This provision promotes consumer flexibility and ensures continuous coverage for policyholders. The significance of Oregon's birthday rule is that it is part of a larger effort to improve the healthcare system. This rule relates to the broader context of health insurance reforms in the United States, aimed to increase the accessibility and affordability of healthcare.
For instance, the law mentioned aims to provide health insurance to millions of uninsured Americans, prohibit insurance companies from rejecting people with preexisting conditions, remove payment limits, and allow young adults to stay on their parents' policy until they turn twenty-six.