Bill Text: NH HB1322 | 2018 | Regular Session | Enrolled

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Bill Title: Relative to risk-based capital for health maintenance organizations.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2018-06-12 - Signed by Governor Sununu 06/08/2018; Chapter 177; Eff. 8/7/2018 [HB1322 Detail]

Download: New_Hampshire-2018-HB1322-Enrolled.html

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HB 1322 - VERSION ADOPTED BY BOTH BODIES

 

 

2018 SESSION

18-2500

01/03

 

HOUSE BILL 1322

 

AN ACT relative to risk-based capital for health maintenance organizations.

 

SPONSORS: Rep. Butler, Carr. 7; Sen. Lasky, Dist 13

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill clarifies the formula for calculating risk-based capital for health maintenance organizations.

 

This bill is a request of the insurance department.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2500

01/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to risk-based capital for health maintenance organizations.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Risk-Based Capital for Insurers; Health Maintenance Organizations.  Amend RSA 404-F:1, VI to read as follows:

VI.  "Life and/or health insurer'' means any insurance company licensed under title XXXVII writing life, accident and health insurance[, health maintenance organizations, limited health service organizations, dental or vision plans, health service corporations,] or a licensed property and casualty insurer writing only accident and health insurance.

2  New Paragraph; Risk-Based Capital for Insurers; Reports.  Amend RSA 404-F:2 by inserting after paragraph III the following new paragraph:

IV.  A health organization’s RBC shall be determined in accordance with the formula set forth in the RBC instructions.  The formula shall take into account, and may adjust for the covariance between:

(a)  Asset risk;

(b)  Credit risk;

(c)  Underwriting risk; and

(d)  All other business risks and such other relevant risks as are set forth in the RBC instructions.

3  Effective Date.  This act shall take effect 60 days after its passage.