2022 -- H 8211

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LC005844

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO INSURANCE -- NONPROFIT HOSPITAL SERVICE CORPORATIONS--

RATE REVIEW ACT

     Introduced By: Representatives Casey, Kennedy, Edwards, Cassar, Kislak, Casimiro,
Speakman, Williams, Kazarian, and Hawkins

     Date Introduced: May 05, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-19-6 of the General Laws in Chapter 27-19 entitled "Nonprofit

Hospital Service Corporations" is hereby amended to read as follows:

     27-19-6. Rates charged subscribers -- Reserves.

     (a) Public hearings General: The rates proposed to be charged or a rating formula proposed

to be used by any corporation organized under this chapter to employers, the state or any political

subdivision of the state, or individuals, shall be filed by the corporation at the office of the health

insurance commissioner (the "commissioner"). Within sixty (60) days after receipt of the

application, the commissioner, or his or her designee shall hold a hearing on all rates proposed for

health insurance coverage offered in the individual market as defined in § 27-18.5-2 upon not less

than ten (10) days written notice prior to the hearing. With regard to any other rates subject to the

commissioner's jurisdiction the commissioner, or his or her designee, may hold a hearing upon not

less than ten (10) days written notice prior to the hearing. The notice shall be published by the

commissioner in a newspaper or newspapers having aggregate general circulation throughout the

state at least ten (10) days prior to the hearing. The notice shall contain a description of the rates

proposed to be charged and a copy of the notice shall be sent to the applicant and to the department

of the attorney general. In addition, the applicant shall provide by mail, at least ten (10) days prior

to the hearing, notice of the proposed rate increase for health insurance coverage offered in the

individual market as defined in § 27-18.5-2 to all subscribers subject to the proposed rate increase.

     (b) Public hearings: Within ten (10) days after receipt of a filing, the commissioner shall

determine, subject to the provisions of subsection (f) of this section, whether they intend to hold a

public meeting or a public hearing at which time notice of such determination shall be sent to the

insurance advocacy unit of the attorney general. Any such public hearing shall commence within

sixty (60) days after receipt of the application, upon not less than ten (10) days written notice prior

to the hearing, published by the commissioner in a newspaper or newspapers having aggregate

general circulation throughout the state, at least ten (10) days prior to the hearing. The notice shall

contain a description of the rates proposed to be charged and a copy of the notice shall be sent to

the applicant and to the department of the attorney general. In the event there is a public hearing,

the attorney general may engage the services of any expert or consultant necessary to assist in

reviewing the filing, including having the ability to seek additional relevant information from the

filer. All public hearings held pursuant to this section shall be held in accordance with the

provisions of chapter 35 of title 42.

     (b)(c) Filings with the Attorney General's Office: The applicant shall provide a copy of the

filing on all rates proposed for health insurance coverage offered in the individual market as defined

in § 27-18.5-2 to the Insurance Advocacy Unit of the Attorney General's Office insurance advocacy

unit of the attorney general's office simultaneously with the filing at the office of the health

insurance commissioner.

     (c)(d) Procedures: At any hearing held under this section, the applicant shall be required to

establish that the rates proposed to be charged or the rating formula to be used are consistent with

the proper conduct of its business and with the interest of the public.

     Rates proposed to be charged by any corporation organized under this chapter shall be

sufficient to maintain total reserves in a dollar amount sufficient to pay claims and operating

expenses for not less than one month. Those reserves shall be computed as of each December 31st,

and a report setting forth the computation shall be submitted to the commissioner together with the

corporation's Rhode Island annual statement to the commissioner. Any documents presented in

support of a filing of proposed rates under this section shall be made available for inspection by

any party entitled to participate in a hearing or admitted as an intervenor in a hearing or such

conditions as the commissioner may prescribe provided under this section at a time and at a place

as the commissioner may deem reasonable. The commissioner, or his or her designee, upon the

hearing, may administer oaths, examine and cross-examine witnesses, receive oral and

documentary evidence, and shall have the power to subpoena witnesses, compel their attendance,

and require the production of books, papers, records, correspondence, or other documents which

he or she deems relevant. The commissioner shall issue a decision as soon as is reasonably possible

LC005844 - Page 2 of 13

following the completion of the hearing. The decision may approve, disapprove, or modify the rates

proposed to be charged by the applicant. Applicants requesting changes in rates shall underwrite

the reasonable expenses of the commissioner in connection with the hearing, including any costs

related to advertisements, stenographic reporting, and expert witnesses fees.

     (1) The applicant shall be required to establish that the rates proposed to be charged are

consistent with the proper conduct of its business and with the interest of the public.

     (2) Any documents presented in support of a filing of proposed rates under this section

shall be made available for public examination at a time and place that the commissioner may deem

reasonable.

     (3) If a public hearing is held pursuant to subsection (b) of this section, the commissioner,

or designee, upon the hearing, may administer oaths, examine and cross-examine witnesses, receive

oral and documentary evidence, and shall have the power to subpoena witnesses, compel their

attendance, and require the production of books, papers, records, correspondence, or other

documents which they deem relevant. Any designee who shall conduct a hearing pursuant to this

section shall report their findings, in writing, to the commissioner, within a reasonable time

following the conclusion of the hearing, with a recommendation for approval, disapproval, or

modification of the rates proposed to be charged by the applicant. The commissioner shall make

and issue a decision not later than ten (10) days following the issuance of the recommended decision

or, if the commissioner hears the application without the appointment of a designee, as soon as is

reasonably possible following the completion of the hearing on the proposed rate change. The

decision may approve, disapprove, or modify the rates proposed to be charged by the applicant.

     (d)(e) The term "designee," as used in this section, shall mean a person who is impartial; a

member in good standing of the Rhode Island bar; and a person who is sufficiently acquainted with

the rules of evidence as used in the superior court of the state so as to enable that person to conduct

a hearing as designee of the commissioner. The reasonable per diem cost of the designee, as

appointed by the commissioner, shall be paid by the applicant requesting changes in the rates.

     (f) Notwithstanding any provision of this section to the contrary, the commissioner shall

hold a public hearing in any instance where the applicant covers ten thousand (10,000) or more

enrolled individuals in the individual market, and the rates proposed in the filing for the annual rate

increase for products offered in the individual market produce an overall average rate increase of

ten percent (10%) or more. The commissioner shall require that any filing for a rate increase for

products offered in the individual market shall include the calculation of the "overall, average-rate

increase" in order to determine whether a public hearing is required.

     (1) For the purposes of this section, the calculation of the "overall, average-rate increase"

LC005844 - Page 3 of 13

shall be based on the overall average increase percent weighted by member premiums, excluding

the effects of age scale increases. To calculate the overall, average-rate increase, the applicant shall

multiply the proposed rate increase by product, times the total monthly renewing premium for each

product, and then divide the product by the sum of monthly renewing premiums for all products.

The commissioner shall require this calculation to be provided as part of the applicant's individual

market rate filing.

     (g) In the event that subsection (f) of this section, in combination with § 42-62-13(b), would

result in more than one public hearing in any given calendar year, the commissioner may defer one

or more public hearing(s) for an applicant resulting from subsection (f) of this section or § 42-62-

13(b) until the subsequent calendar year, with the provision that one of the deferred applicants shall

be required to have a public hearing in the subsequent year, whether or not the applicants' filing

satisfies the requirements of subsection (f) of this section or § 42-62-13(b) in that subsequent

calendar year.

     (h) The commissioner shall notify the attorney general of the filing(s) to be deferred and

the attorney general shall be given the opportunity to provide written comments and

recommendations to the commissioner regarding any such filing(s) deferred in accordance with

subsection (g) of this section.

     (i) Notwithstanding any other provision of law to the contrary, the filing of proposed rates

or a rating formula, and the holding and conducting of any public hearing in connection with these

proposed rates or rating formula, shall be held in accordance with the provisions of chapter 35 of

title 42.

     (j) Public comment. Whether or not a public hearing is held pursuant to subsection (f) of

this section, the commissioner shall solicit public comment regarding the rates proposed to be

charged. Public comment shall be solicited upon not less than ten (10) days written notice prior to

the date that either:

     (1) A public meeting at which verbal comments may be provided; or

     (2) That written comment must be received by the commissioner.

     The notice shall contain a description of the rates proposed to be charged, or the formula

proposed to be used, and a copy of the notice shall be sent to the applicant and to the insurance

advocacy unit of the department of the attorney general. The attorney general shall be permitted to

conduct discovery in relation to the actuarial analysis and actuarial assumptions of the filer

regarding any filing in the individual market as defined in § 27-18.5-2. Any documents presented

in support of the filing under this section shall be made available for public examination at a time

and place that the commissioner may deem reasonable.

LC005844 - Page 4 of 13

     (k) The applicant shall bear reasonable expenses of the commissioner in connection with a

filing made pursuant to this section, including any costs related to advertisements, stenographic

reporting, and expert fees, regardless of whether a public hearing is held. The applicant shall bear

reasonable expenses of the attorney general in relation to any public hearing conducted pursuant to

this section. The applicant shall bear reasonable expenses of the attorney general in relation to any

filing in the individual market that is not subject to a public hearing.

     SECTION 2. Section 27-20-6 of the General Laws in Chapter 27-20 entitled "Nonprofit

Medical Service Corporations" is hereby amended to read as follows:

     27-20-6. Rates charged subscribers -- Reserves -- Hearing by commissioner.

     (a) Public hearings General: The rates proposed to be charged or a rating formula proposed

to be used by any corporation organized under this chapter to its subscribers, employers, the state

or any political subdivision of the state, or individuals, shall be filed by the corporation at the office

of the health insurance commissioner (the "commissioner"). Within sixty (60) days after receipt of

the application, the commissioner, or his or her designee, shall hold a hearing on all rates proposed

for health insurance coverage offered in the individual market as defined in § 27-18.5-2 upon not

less than ten (10) days written notice prior to the hearing. With regard to any other rates or rating

formula subject to the commissioner's jurisdiction the commissioner, or his or her designee, may

hold a hearing upon not less than ten (10) days written notice prior to the hearing. The notice shall

be published by the commissioner in a newspaper or newspapers having aggregate general

circulation throughout the state at least ten (10) days prior to the hearing. The notice shall contain

a description of the rates proposed to be charged and a copy of the notice shall be sent to the

applicant and to the department of the attorney general. In addition, the applicant shall provide by

mail, at least ten (10) days prior to the hearing, notice of the proposed rate increase for health

insurance coverage offered in the individual market as defined in § 27-18.5-2 to all subscribers

subject to the proposed rate increase.

     (b) Public hearings: Within ten (10) days after receipt of a filing, the commissioner shall

determine, subject to the provisions of subsection (f) of this section, whether they intend to hold a

public meeting or a public hearing at which time notice of such determination shall be sent to the

insurance advocacy unit of the attorney general. Any such public hearing shall commence within

sixty (60) days after receipt of the application, upon not less than ten (10) days written notice prior

to the hearing, published by the commissioner in a newspaper or newspapers having aggregate

general circulation throughout the state, at least ten (10) days prior to the hearing. The notice shall

contain a description of the rates proposed to be charged and a copy of the notice shall be sent to

the applicant and to the department of the attorney general. In the event there is a public hearing,

LC005844 - Page 5 of 13

the attorney general may engage the services of any expert or consultant necessary to assist in

reviewing the filing, including having the ability to seek additional relevant information from the

filer. All public hearings held pursuant to this section shall be held in accordance with the

provisions of chapter 35 of title 42.

     (b)(c) Filings with the Attorney General's Office: The applicant shall provide a copy of the

filing on all rates proposed for health insurance coverage offered in the individual market as defined

in § 27-18.5-2 or for a Medicare supplement policy as defined in § 27-18.2-1 to the Insurance

Advocacy Unit of the Attorney General's Office insurance advocacy unit of the attorney general's

office simultaneously with the filing at the office of the health insurance commissioner.

     (c)(d) Procedures: At any hearing held under this section, the applicant shall be required to

establish that the rates proposed to be charged or the rating formula proposed to be used are

consistent with the proper conduct of its business and with the interest of the public.

     Rates proposed to be charged by any corporation organized under this chapter shall

maintain total reserves in a dollar amount sufficient to pay claims and operating expenses for not

less than one month. Those reserves shall be computed as of each December 31st, and a report

setting forth the computation shall be submitted to the commissioner together with the corporation's

Rhode Island annual statement to the insurance commissioner of the state of Rhode Island. Any

documents presented in support of a filing of proposed rates under this section shall be made

available for inspection by any party entitled to participate in a hearing or admitted as an intervenor

in a hearing on such conditions as the commissioner may prescribe provided pursuant to this section

at a time and at a place as the commissioner may deem reasonable. The commissioner, or his or her

designee, upon the hearing, may administer oaths, examine and cross examine witnesses, receive

oral and documentary evidence, and shall have the power to subpoena witnesses, compel their

attendance, and require the production of books, papers, records, correspondence, or other

documents which the director deems relevant. The commissioner shall issue a decision as soon as

is reasonably possible following completion of the hearing. The decision may approve, disapprove,

or modify the rates proposed to be charged by the applicant. Applicants requesting changes in rates

shall underwrite the reasonable expenses of the commissioner in connection with the hearing,

including any costs related to advertisements, stenographic reporting, and expert witnesses fees.

     (1) The applicant shall be required to establish that the rates proposed to be charged are

consistent with the proper conduct of its business and with the interest of the public.

     (2) Any documents presented in support of a filing of proposed rates under this section

shall be made available for public examination at a time and place that the commissioner may deem

reasonable.

LC005844 - Page 6 of 13

     (3) If a public hearing is held pursuant to subsection (b) of this section, the commissioner,

or designee, upon the hearing, may administer oaths, examine and cross-examine witnesses, receive

oral and documentary evidence, and shall have the power to subpoena witnesses, compel their

attendance, and require the production of books, papers, records, correspondence, or other

documents which they deem relevant. Any designee who shall conduct a hearing pursuant to this

section shall report their findings, in writing, to the commissioner, within a reasonable time

following the conclusion of the hearing, with a recommendation for approval, disapproval, or

modification of the rates proposed to be charged by the applicant. The commissioner shall make

and issue a decision not later than ten (10) days following the issuance of the recommended decision

or, if the commissioner hears the application without the appointment of a designee, as soon as is

reasonably possible following the completion of the hearing on the proposed rate change. The

decision may approve, disapprove, or modify the rates proposed to be charged by the applicant.

     (d)(e) The term "designee," as used in this section, shall mean a person who is impartial; a

member in good standing of the Rhode Island bar; and a person who is sufficiently acquainted with

the rules of evidence as used in the superior court of the state so as to enable that person to conduct

a hearing as designee of the commissioner. The reasonable per diem cost of the designee, as

appointed by the commissioner, shall be paid by the applicant requesting changes in the rates.

     (f) Notwithstanding any provision of this section to the contrary, the commissioner shall

hold a public hearing in any instance where the applicant covers ten thousand (10,000) or more

enrolled individuals in the individual market, and the rates proposed in the filing for the annual rate

increase for products offered in the individual market produce an overall average rate increase of

ten percent (10%) or more. The commissioner shall require that any filing for a rate increase for

products offered in the individual market shall include the calculation of the "overall, average-rate

increase" in order to determine whether a public hearing is required.

     (1) For the purposes of this section, the calculation of the "overall, average-rate increase"

shall be based on the overall, average-increase percent weighted by member premiums, excluding

the effects of age scale increases. To calculate the overall, average-rate increase, the applicant shall

multiply the proposed rate increase by product, times the total monthly renewing premium for each

product, and then divide the product by the sum of monthly renewing premiums for all products.

The commissioner shall require this calculation to be provided as part of the applicant's individual

market rate filing.

     (g) In the event that subsection (f) of this section, in combination with § 42-62-13(b), would

result in more than one public hearing in any given calendar year, the commissioner may defer one

or more public hearing(s) for an applicant resulting from subsection (f) of this section or § 42-62-

LC005844 - Page 7 of 13

13(b) until the subsequent calendar year, with the provision that one of the deferred applicants shall

be required to have a public hearing in the subsequent year, whether or not the applicants' filing

satisfies the requirements of subsection (f) of this section or § 42-62-13(b) in that subsequent

calendar year.

     (h) The commissioner shall notify the attorney general of the filing(s) to be deferred and

the attorney general shall be given the opportunity to provide written comments and

recommendations to the commissioner regarding any such filing(s) deferred in accordance with

subsection (g) of this section.

     (i) Notwithstanding any other provision of law to the contrary, the filing of proposed rates

or a rating formula, and the holding and conducting of any public hearing in connection with these

proposed rates or rating formula, shall be held in accordance with the provisions of chapter 35 of

title 42.

     (j) Public comment. Whether or not a public hearing is held pursuant to subsection (f) of

this section, the commissioner shall solicit public comment regarding the rates proposed to be

charged. Public comment shall be solicited upon not less than ten (10) days written notice prior to

the date that either:

     (1) A public meeting at which verbal comments may be provided; or

     (2) That written comment must be received by the commissioner.

     The notice shall contain a description of the rates proposed to be charged, or the formula

proposed to be used, and a copy of the notice shall be sent to the applicant and to the insurance

advocacy unit of the department of the attorney general. The attorney general shall be permitted to

conduct discovery in relation to the actuarial analyses and actuarial assumptions of the filer

regarding any filing in the individual market as defined in § 27-18.5-2. Any documents presented

in support of the filing under this section shall be made available for public examination at a time

and place that the commissioner may deem reasonable.

     (k) The applicant shall bear reasonable expenses of the commissioner in connection with a

filing made pursuant to this section, including any costs related to advertisements, stenographic

reporting, and expert fees, regardless of whether a public hearing is held. The applicant shall bear

reasonable expenses of the attorney general in relation to any public hearing conducted pursuant to

this section. The applicant shall bear reasonable expenses of the attorney general in relation to any

filing in the individual market that is not subject to a public hearing.

     SECTION 3. Section 42-62-13 of the General Laws in Chapter 42-62 entitled

"Catastrophic Health Insurance Plan Act" is hereby amended to read as follows:

     42-62-13. Rates charged.

LC005844 - Page 8 of 13

     (a) The rates proposed to be charged or a rating formula proposed to be used by any insurer

or health maintenance organization under this section to employers, the state or any political

subdivision of the state, or individuals, shall be filed by the insurer or health maintenance

organization at the office of the director of business regulation. This section does not apply to any

entity subject to § 27-19-1 et seq., and/or § 27-20-1 et seq. The rates proposed to be charged by

those entities shall be governed by the provisions of § 27-19-1 et seq., and/or § 27-20-1 et seq.

Within sixty (60) days after receipt of the application, the director, or the director's designee, may

hold a hearing upon not less than ten (10) days' written notice prior to the hearings. The notice shall

contain a description of the rates proposed to be charged, and a copy of the notice shall be sent to

the applicant and to the consumer protection unit of the department of attorney general. At any

hearing held under this section, the applicant shall be required to establish that the rates proposed

to be charged or the rating formula proposed to be used are consistent with the proper conduct of

its business and with the interest of the public. Any documents presented in support of a filing of

proposed rates under this section shall be made available for public examination at any time and

place that the director may deem reasonable. The director, or the director's designee, upon that

hearing may administer oaths, examine and cross-examine witnesses, receive oral and documentary

evidence, and shall have the power to subpoena witnesses, compel their attendance and require the

production of all books, papers, records, correspondence, or other documents which he or she

deems relevant. Any designee who shall conduct a hearing pursuant to this section shall report his

or her findings in writing to the director within eighty (80) days of the filing with a recommendation

for approval, disapproval, or modification of the rates proposed to be charged by the applicant. The

recommended decision shall become part of the record. The director shall make and issue a decision

not later than ten (10) days following the issuance of the recommended decision or, if the director

hears the application without the appointment of a designee, as soon as is reasonably possible

following the completion of the hearing on the proposed rate change. The decision may approve,

disapprove, or modify the rates proposed to be charged by the applicant. Insurers requesting

changes in rates shall underwrite the reasonable expenses of the department of business regulation

in connection with the hearing, including any costs related to advertisements, stenographic

reporting, and expert witnesses fees. Notwithstanding any other provisions of law, the filing of

proposed rates or a rating formula and the holding and conduct of any hearings in connection with

these proposed rates or rating formula shall be pursuant to this section.

     (b) Whenever the term "designee" is used in this section, it shall mean a person who is

impartial, a member in good standing of the Rhode Island bar and a person who is sufficiently

acquainted with the rules of evidence as used in the superior court of the state so as to enable that

LC005844 - Page 9 of 13

person to conduct a hearing as designee of the director. The reasonable per diem cost of the designee

as appointed by the director shall be paid by the insurers requesting changes in the rates. The rates

proposed to be charged, or a rating formula proposed to be used, by any health insurer, dental

insurer, or health maintenance organization subject to title 27, to employers, the state or any

political subdivision of the state, or individuals, shall be filed at the office of the health insurance

commissioner (the "commissioner"). The rates proposed to be used by any health insurer, dental

insurer, or health maintenance organization in the individual market as defined in § 27-18.5-2 shall

be filed at the office of the health insurance commissioner and simultaneously with the attorney

general's insurance advocacy unit. The applicant shall be required to establish that the rates

proposed to be charged, or the rating formula proposed to be used, are consistent with the proper

conduct of its business and with the interest of the public. Within ten (10) days after receipt of the

filing, the commissioner shall determine, subject to subsection (b) of this section, whether they

intend to hold a public meeting or a public hearing at which time notice of such determination shall

be sent to the insurance advocacy unit of the attorney general. In the event there is a public hearing,

the attorney general may engage the services of any expert or consultant necessary to assist in

reviewing the filing, including having the ability to seek additional relevant information from the

filer. Any such public hearing shall commence within sixty (60) days after receipt of the filing. The

commissioner, or designee, may hold a hearing upon not less than ten (10) days prior written notice

to the public in a newspaper or newspapers having aggregate general circulation throughout the

state. The notice shall contain a description of the rates proposed to be charged, and a copy of the

notice shall be sent to the applicant and to the insurance advocacy unit of the department of attorney

general. Any documents presented in support of the filing under this section shall be made available

for public examination at any time and place that the commissioner may deem reasonable.

     (b) Notwithstanding any provision of this section to the contrary, the commissioner shall

hold a public hearing in any instance where the applicant covers ten thousand (10,000) or more

enrolled individuals in the individual market, and the rates proposed in the filing for the annual rate

increase for products offered in the individual market produce an overall average rate increase of

ten percent (10%) or more. The commissioner shall require that any filing for a rate increase for

products offered in the individual market shall include the calculation of the "overall average-rate

increase" in order to determine whether a public hearing is required.

     (1) For the purposes of this section, the calculation of the "overall, average-rate increase"

shall be based on the overall average increase percent weighted by member premiums, excluding

the effects of age scale increases. To calculate the overall average-rate increase, the applicant shall

multiply the proposed rate increase by product times the total monthly renewing premium for each

LC005844 - Page 10 of 13

product, and then divide the product by the sum of monthly renewing premiums for all products.

The commissioner shall require this calculation to be provided as part of the applicant's individual

market rate filing.

     (c) In the event that subsection (b) of this section, in combination with §§ 27-19-6(f) and

27-20-6(f), would result in more than one public hearing in any given calendar year, the

commissioner may defer one or more public hearing(s) for applicant(s) resulting from subsection

(b) of this section or §§ 27-19-6(f) and 27-20-6(f) until the subsequent calendar year, with the

provision that one of the deferred applicants shall be required to have a public hearing in the

subsequent year whether or not it satisfies the requirements of subsection (b) of this section or §§

27-19-6(f) and 27-20-6(f) for that subsequent calendar year.

     (d) The commissioner shall notify the attorney general of the filing(s) to be deferred and

the attorney general shall be given the opportunity to provide written comments and

recommendations to the commissioner regarding any such filing(s) that is deferred in accordance

with subsection (c) of this section.

     (e) Public Hearings. If a public hearing is held pursuant to subsection (b) of this section,

the commissioner, or designee, upon that hearing may administer oaths, examine and cross-

examine witnesses, receive oral and documentary evidence, and shall have the power to subpoena

witnesses, compel their attendance, and require the production of all books, papers, records,

correspondence, or other documents which they deem relevant. The public hearing shall be held in

accordance with the provisions of chapter 35 of title 42. Any designee who shall conduct a hearing

pursuant to this section shall report their findings in writing to the commissioner, within a

reasonable time following the conclusion of the hearing, with a recommendation for approval,

disapproval, or modification of the rates proposed to be charged by the applicant. The

recommended decision shall become part of the record. The commissioner shall make and issue a

decision not later than ten (10) days following the issuance of the recommended decision or, if the

commissioner hears the application without the appointment of a designee, as soon as is reasonably

possible following the completion of the hearing on the proposed rate change. The decision may

approve, disapprove, or modify the filing.

     (f) Notwithstanding any other provisions of law to the contrary, the filing of proposed rates,

or a rating formula, and the holding and conducting of any public hearing in connection with these

proposed rates, or rating formula, of any health insurer, dental insurer, or health maintenance

organization subject to title 27 shall be held in accordance with the provisions of chapter 35 of title

42.

     (g) Whenever the term "designee" is used in this section, it shall mean a person who is

LC005844 - Page 11 of 13

impartial, a member in good standing of the Rhode Island bar and a person who is sufficiently

acquainted with the rules of evidence as used in the superior court of the state in order to enable

that person to conduct a hearing as designee of the director. The reasonable per diem cost of the

designee as appointed by the director shall be paid by the insurers requesting changes in the rates.

     (h) Public comment. Whether or not a public hearing is held pursuant to subsection (b) of

this section, the commissioner shall solicit public comment regarding the rates proposed to be used.

Public comment shall be solicited upon not less than ten (10) days written notice prior to the date

that either:

     (1) A public meeting at which verbal comments may be provided; or

     (2) That written comment must be received by the commissioner.

     The notice shall contain a description of the rates proposed to be charged, and a copy of

the notice shall be sent to the applicant and to the insurance advocacy unit of the department of

attorney general. The attorney general shall be permitted to conduct discovery in relation to the

actuarial analysis and actuarial assumptions of the filer regarding any filing in the individual market

as defined in § 27-18.5-2. Any documents presented in support of the filing under this section shall

be made available for public examination at a time and place that the commissioner may deem

reasonable.

     (i) The applicant shall bear reasonable expenses of the commissioner in connection with a

filing made pursuant to this section, including any costs related to advertisements, stenographic

reporting, and expert fees, regardless of whether a public hearing is held. The applicant shall bear

reasonable expenses of the attorney general in relation to any public hearing conducted pursuant to

this section. The applicant shall bear reasonable expenses of the attorney general in relation to any

filing in the individual market that is not subject to a public hearing.

     SECTION 4. This act shall take effect on January 1, 2023.

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LC005844

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LC005844 - Page 12 of 13

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- NONPROFIT HOSPITAL SERVICE CORPORATIONS--

RATE REVIEW ACT

***

     This act would create a uniform rate review procedure for rates proposed to be changed or

rating formulas proposed to be used by nonprofit hospital service corporations, nonprofit medical

services corporations and the catastrophic health insurance plan, requiring public hearings or public

meetings with the applicant bearing the reasonable expenses of the filing. This act would not limit

the appeal rights of any person or entity that had the right to appeal a final decision of the

commissioner under the applicable provisions of titles 27 and 42 relating to health insurance.

     This act would take effect on January 1, 2023.

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LC005844

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LC005844 - Page 13 of 13