Aug 26, 2016
CID approves new regulations for health insurance rate filings
Producers who sell health insurance should be aware that the Connecticut Insurance Department has promulgated regulation changes to the Approval of Individual Health Application, Policy Form and rates statute. The Legislative Regulation Review Committee approved regulation changes and updates to Section 38a-481(b) on July 26, 2016. These changes prohibit a carrier from effecting a rate change to health policies before first filing the rate change with the CID and the department’s subsequent approval of the change. These regulation changes spanned both updating the current definitions to adding new sections to the regulations.
While the current definitions were updated to include new terms, the larger change is the added sections to the regulation. The department added Section 38a-481-5 through Section 38a-481-9, which covers timing of filings; the process; and includes minimum and additional filing requirements. According to Section 38a-481-5, any filings regarding the rates of health coverage must be done no later than 90 days prior to the date the carrier plans to market such plans. If the plan is subject to Patient Protection and Affordable Care Act requirements then the rate filings must be filed annually by a date determined by the commissioner. Carriers will be notified of this date no later than 30 days prior to the prescribed date.
One change that health insurance producers should note is Section 38a-481-6, which requires the transparency of rate filings. Any information supplied to the CID to fulfill the statutory rate review requirement, as well as all correspondence and documentation is available through the System for Electronic Rate and Form Filing. This information also may be posted on the CID website for review and public comments, which are reviewed by CID for consideration as an additional element of the review determination.
Other sections outline the rate filing process, which must be done through SERF, as well as minimum and additional filing requirements carriers must submit.