B. Coverage under the prior contract or policy terminated:

(1) Within 180 days before the date the person enrolls or is eligible to enroll in the succeeding contract if:

(a) Coverage was terminated due to unemployment, as defined in Title 26, section 1043;

(b) The person was eligible for and received unemployment compensation benefits for the period of unemployment, as provided under Title 26, chapter 13; and

(c) The person is employed at the time replacement coverage is sought under this provision; or

(2) Within 90 days before the date the person enrolls or is eligible to enroll in the succeeding contract.

A period of ineligibility for any health plan imposed by terms of employment may not be considered in determining whether the coverage ended within a time period specified under this section; or .

Sec. 3. 24-A MRSA §2849-B, sub-§2, ¶D, as enacted by PL 1997, c. 445, §25 and affected by §32, is repealed.

Sec. 4. 24-A MRSA §5002-B is enacted to read:

§5002-B.__Continuity of coverage

1.__Persons provided continuity of coverage.__This section provides continuity of coverage for a person who seeks coverage under a Medicare supplement policy if:

A.__That person was previously covered under a Medicare supplement policy issued by the same or a different carrier.__ For purposes of this section, the Medicare supplement policy under which the person is seeking coverage is the "succeeding policy."__The Medicare supplement policy that previously covered the person is the "prior policy";

B.__Coverage under the prior Medicare supplement policy terminated within 90 days before the date the person applies for the succeeding policy; and

C.__The prior policy was issued during the insured's open enrollment period or was issued to replace another Medicare