ACT NO. 43
Health Insurance; Supplemental Insurance Policies
This act amends the standards and procedures used by the Commissioner of Banking, Insurance, Securities, and Health Care Administration in acting upon significant changes in Medicare supplemental insurance policies. Special notice and independent actuary provisions will apply only if proposed premium or coverage changes will have an impact on policyholders in excess of $500,000. The standards and procedures for approval of a Medigap rate increase now include: the requirement that the increase not be based on an unreasonable change in the insurer's loss ratio; the Commissioner may approve a premium increase different from the increase requested by the insurer; the insurer has the burden of proof in any appeal from a denial by the Commissioner; a public hearing is required whenever an independent actuary is involved in the premium increase case; the commissioner is required to permit intervention in premium increase cases when intervention will help the affected policyholders and to reimburse the intervenor up to $2,500; and all nonproprietary information relevant to the premium increase case is to be made available to the public.
Effective Date: July 1, 1999