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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
107
:
HEALTH INSURANCE
Subchapter
001
:
GENERALLY
§
4062. Filing and approval of policy forms and premiums
(a)(1) No policy
of health insurance or certificate under a policy filed by an insurer offering
health insurance as defined in subdivision 3301(a)(2) of this title, a
nonprofit hospital or medical service corporation, health maintenance
organization, or a managed care organization and not exempted by subdivision
3368(a)(4) of this title shall be delivered or issued for delivery in this
State, nor shall any endorsement, rider, or application which becomes a part of
any such policy be used, until a copy of the form and of the rules for the
classification of risks has been filed with the Department of Financial
Regulation and a copy of the premium rates has been filed with the Green
Mountain Care Board; and the Green Mountain Care Board has issued a decision
approving, modifying, or disapproving the proposed rate.
(2)(A) The Green
Mountain Care Board shall review rate requests and shall approve, modify, or
disapprove a rate request within 90 calendar days after receipt of an initial
rate filing from an insurer. If an insurer fails to provide necessary materials
or other information to the Board in a timely manner, the Board may extend its
review for a reasonable additional period of time, not to exceed 30 calendar
days.
(B) Prior to the
Board's decision on a rate request, the Department of Financial Regulation
shall provide the Board with an analysis and opinion on the impact of the
proposed rate on the insurer's solvency and reserves.
(3) The Board
shall determine whether a rate is affordable, promotes quality care, promotes
access to health care, protects insurer solvency, and is not unjust, unfair,
inequitable, misleading, or contrary to the laws of this State. In making this
determination, the Board shall consider the analysis and opinion provided by
the Department of Financial Regulation pursuant to subdivision (2)(B) of this
subsection.
(b) In
conjunction with a rate filing required by subsection (a) of this section, an
insurer shall file a plain language summary of the proposed rate. All summaries
shall include a brief justification of any rate increase requested, the
information that the Secretary of the U.S. Department of Health and Human
Services (HHS) requires for rate increases over 10 percent, and any other
information required by the Board. The plain language summary shall be in the
format required by the Secretary of HHS pursuant to the Patient Protection and
Affordable Care Act of 2010, Public Law 111-148, as amended by the Health Care
and Education Reconciliation Act of 2010, Public Law 111-152, and shall include
notification of the public comment period established in subsection (c) of this
section. In addition, the insurer shall post the summaries on its website.
(c)(1) The Board
shall provide information to the public on the Board's website about the public
availability of the filings and summaries required under this section.
(2)(A) Beginning
no later than January 1, 2014, the Board shall post the rate filings pursuant
to subsection (a) of this section and summaries pursuant to subsection (b) of
this section on the Board's website within five calendar days of filing. The
Board shall also establish a mechanism by which members of the public may
request to be notified automatically each time a proposed rate is filed with
the Board.
(B) The Board
shall provide an electronic mechanism for the public to comment on all rate
filings. The Board shall accept public comment on each rate filing from the
date on which the Board posts the rate filing on its website pursuant to
subdivision (A) of this subdivision (2) until 15 calendar days after the Board
posts on its website the analyses and opinions of the Department of Financial
Regulation and of the Board's consulting actuary, if any, as required by subsection
(d) of this section. The Board shall review and consider the public comments
prior to issuing its decision.
(3)(A) In
addition to the public comment provisions set forth in this subsection, the
Office of the Health Care Advocate established in 18 V.S.A. chapter 229, acting
on behalf of health insurance consumers in this State, may, within 30 calendar
days after the Board receives an insurer's rate request pursuant to this
section, submit to the Board, in writing, suggested questions regarding the filing
for the Board to provide to its contracting actuary, if any.
(B) The Office
of the Health Care Advocate may also submit to the Board written comments on an
insurer's rate request. The Board shall post the comments on its website and
shall consider the comments prior to issuing its decision.
(d)(1) No later
than 60 calendar days after receiving an insurer's rate request pursuant to
this section, the Green Mountain Care Board shall make available to the public
the insurer's rate filing, the Department's analysis and opinion of the effect
of the proposed rate on the insurer's solvency, and the analysis and opinion of
the rate filing by the Board's contracting actuary, if any.
(2) The Board
shall post on its website, after redacting any confidential or proprietary
information relating to the insurer or to the insurer's rate filing:
(A) all
questions the Board poses to its contracting actuary, if any, and the actuary's
responses to the Board's questions; and
(B) all
questions the Board, the Board's contracting actuary, if any, or the Department
poses to the insurer and the insurer's responses to those questions.
(e) Within the
time period set forth in subdivision (a)(2)(A) of this section, the Board
shall:
(1) conduct a
public hearing, at which the Board shall:
(A) call as
witnesses the Commissioner of Financial Regulation or designee and the Board's
contracting actuary, if any, unless all parties agree to waive such testimony;
and
(B) provide an
opportunity for testimony from the insurer; the Office of the Health Care
Advocate; and members of the public;
(2) at a public
hearing, announce the Board's decision of whether to approve, modify, or
disapprove the proposed rate; and
(3) issue its
decision in writing.
(f)(1) The
insurer shall notify its policyholders of the Board's decision in a timely
manner, as defined by the Board by rule.
(2) Rates shall
take effect on the date specified in the insurer's rate filing.
(3) If the Board
has not issued its decision by the effective date specified in the insurer's
rate filing, the insurer shall notify its policyholders of its pending rate
request and of the effective date proposed by the insurer in its rate filing.
(g) An insurer,
the Office of the Health Care Advocate, and any member of the public with party
status, as defined by the Board by rule, may appeal a decision of the Board
approving, modifying, or disapproving the insurer's proposed rate to the
Vermont Supreme Court.
(h)(1) The
authority of the Board under this section shall apply only to the rate review
process for policies for major medical insurance coverage and shall not apply
to the policy forms for major medical insurance coverage or to the rate and
policy form review process for policies for specific disease, accident, injury,
hospital indemnity, dental care, vision care, disability income, long-term
care, student health insurance coverage, Medicare supplemental coverage, or
other limited benefit coverage, or to benefit plans that are paid directly to
an individual insured or to his or her assigns and for which the amount of the
benefit is not based on potential medical costs or actual costs incurred.
Premium rates and rules for the classification of risk for Medicare
supplemental insurance policies shall be governed by sections 4062b and 4080e
of this title.
(2) The policy
forms for major medical insurance coverage, as well as the policy forms,
premium rates, and rules for the classification of risk for the other lines of
insurance described in subdivision (1) of this subsection shall be reviewed and
approved or disapproved by the Commissioner. In making his or her
determination, the Commissioner shall consider whether a policy form, premium
rate, or rule is affordable and is not unjust, unfair, inequitable, misleading,
or contrary to the laws of this State. The Commissioner shall make his or her
determination within 30 days after the date the insurer filed the policy form,
premium rate, or rule with the Department. At the expiration of the 30-day
period, the form, premium rate, or rule shall be deemed approved unless prior
to then it has been affirmatively approved or disapproved by the Commissioner
or found to be incomplete. The Commissioner shall notify an insurer in writing
if the insurer files any form, premium rate, or rule containing a provision
that does not meet the standards expressed in this subsection. In such notice,
the Commissioner shall state that a hearing will be granted within 20 days upon
the insurer's written request.
(3) Repealed.]
(i)
Notwithstanding the procedures and timelines set forth in subsections (a)
through (e) of this section, the Board may establish, by rule, a streamlined
rate review process for certain rate decisions, including proposed rates
affecting fewer than a minimum number of covered lives and proposed rates for
which a de minimis increase, as defined by the Board by rule, is sought. (Added
1983, No. 238 (Adj. Sess.), § 4; amended 1989, No. 106, § 3; 1989, No. 225
(Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 48, § 15, eff.
Jan. 1, 2012; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2011, No. 171
(Adj. Sess.), § 25, eff. May 16, 2012; 2013, No. 79, § 5c, eff. Jan. 1, 2014;
2013, No. 144 (Adj. Sess.), § 5, eff. May 27, 2014; 2013, No. 179 (Adj. Sess.),
§ E.345.1; 2015, No. 54, § 31.)