Bill Text: HI SR52 | 2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance Commissioner; Rate Filings; Capital Reserves and Surplus

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2012-06-22 - (S) Certified copies of resolutions sent, 06-19-12. [SR52 Detail]

Download: Hawaii-2012-SR52-Introduced.html

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THE SENATE	S.R. NO.	52
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

SENATE RESOLUTION

 

 

requesting the insurance commissioner to review the accumulation of capital reserves and surplus of managed care plans when reviewing rate filings.

 

 

     WHEREAS, managed care plans in the State need monetary reserves to cover unanticipated claims and unforeseen business fluctuations; and

 

     WHEREAS, the accrual of excessive amounts of reserves may indicate that a managed care plan is accumulating funds, rather than applying those funds to pay claims; and

 

     WHEREAS, as a result, plan subscribers may be paying a higher premium rate than is justified; and

 

     WHEREAS, the federal Patient Protection and Affordable Care Act establishes a process for reviewing certain increases in health plan premiums and requires plans to justify these increases; and

 

     WHEREAS, an effective rate review system must consider the capital reserves and surplus of a managed care plan; and

 

     WHEREAS, the Insurance Commissioner in the Department of Commerce and Consumer Affairs should have the authority to consider the capital reserves and surplus of a managed care plan when approving or disapproving rate filings; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, that the Insurance Commissioner is requested to consider the accumulation of capital reserves and surplus of managed care plans in the State when reviewing rate filings; and

 

     BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to submit a report to the Legislature, including proposed legislation that will enable the Insurance Commissioner to consider the accumulation of capital reserves and surplus of managed care plans in the State when reviewing rate filings, no later than twenty days prior to the convening of the Regular Session of 2013; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Insurance Commissioner.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Insurance Commissioner; Rate Filings; Capital Reserves and Surplus