Binding Arbitration Clause in CA Health Net Medigap Plan?

[xb29bomber]

I noticed that Health Net in California has a Binding Arbitration clause in their Medicare Supplement application. I've never noticed this before with other insurance carriers, at least the ones that I work with. Is this anything to be concerned about from either a client or agent perspective? Thank you!

 

[DS4]

Arbitrate what?? If Medicare pays, the supp pays. If Medicare declines, the supp declines.

 

[xb29bomber]

Thanks for responding. What you said seems totally logical, but if that's the case, I still don't understand why a carrier would have that clause in their contract while most don't.