Chapter 540

2004 -- S 2283 SUBSTITUTE A AS AMENDED

Enacted 07/09/04

 

 

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- CATASTROPHIC HEALTH  INSURANCE PLAN ACT

     

     

     Introduced By: Senators Tassoni, Polisena, Roberts, and Perry

     Date Introduced: February 05, 2004

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. 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. -- (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. A

copy of the filing shall be provided simultaneously to the Insurance Advocacy Unit in the

department of the attorney general. Within sixty (60) days after receipt of the application, the

director, or the director's designee, shall hold a hearing upon not less than ten (10) days' written

notice whenever a proposed rate exceeds the consumer price index (CPI) for medical care for the

prior calendar year in which the proposed rate increase is filed. If the proposed rate increase is

less than the increase in the consumer price index (CPI) for medical care for the prior calendar

year in which the proposed rate is filed, the director may hold a hearing upon not less than ten

(10) days' written notice prior to the hearings. These provisions shall not apply to products

offered in the small group or large group market. 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. The notice shall also be published

by the department in a newspaper or newspapers having aggregate general circulation throughout

the state at least ten (10) days prior to the hearing. In addition, whenever the proposed rate

increase exceed the consumer price index (CPI) for medical care for the prior calendar year in

which the rate increase is filed, the department shall require the applicant to notify by mail, at

least ten (10) days prior to the hearing, notice the proposed rate increase to all subscribers subject

to the proposed rate increase. 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

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.

     SECTION 2. This act shall take effect upon passage.

     

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LC01712/SUB A

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