D.C. Mun. Regs. tit. 26, r. 26-A2216

Current through Register 71, No. 45, November 7, 2024

Rule 26-A2216 - FILING AND APPROVAL OF POLICIES AND CERTIFICATES AND PREMIUM RATES

2216.1

An issuer shall not:

(a) Deliver or issue for delivery a policy or certificate to a resident of the District unless the policy form or certificate form has been filed with and approved by the Commissioner; and

(b) Use or change premium rates for a Medicare supplement policy or certificate unless the rates, rating schedule and supporting documentation have been filed with and approved by the Commissioner.

2216.2

Except as provided in subsection 2216.3, an issuer shall not file for approval more than one form of a policy or certificate of each type for each Standard Medicare Supplement Benefit Plan described in section 2208.

2216.3

An issuer may offer, with the approval of the Commissioner, up to four (4) additional policy forms or certificate forms of the same type for the same Standard Medicare Supplement Benefit Plan, one for each of the following cases:

(a) The inclusion of new or innovative benefits;

(b) The addition of either direct response or agent marketing methods;

(c) The addition of either guaranteed issue or underwritten coverage; and

(d) The offering of coverage to individuals eligible for Medicare by reason of disability.

2216.4

For the purposes of this section 2216, a type means an individual policy or a group policy.

2216.5

Except as provided in subsections 2216.7 and 2216.8, an issuer shall continue to make available for purchase any policy form or certificate form issued after May 1, 1999 that has been approved by the Commissioner.

2216.6

A policy form or certificate form shall not be considered to be available for purchase unless the issuer has actively offered it for sale in the previous twelve (12) months.

2216.7

An issuer may discontinue the availability of a policy form or certificate form if the issuer provides to the Commissioner in writing its decision at least thirty (30) days prior to discontinuing the availability of the form of the policy or certificate.

2216.8

After receipt of the notice by the Commissioner, the issuer shall no longer offer for sale the policy form or certificate form in the District.

2216.9

An issuer that discontinues the availability of a policy form or certificate form pursuant to subsections 2216.7 and 2216.8 shall not file for approval a new policy form or certificate form of the same type for the same Standard Medicare Supplement Benefit Plan as the discontinued form for a period of five (5) years after the issuer provides notice to the Commissioner of the discontinuance.

2216.10.1

The period of discontinuance may be reduced if the Commissioner determines that a shorter period is appropriate.

2216.11

The sale or other transfer of Medicare supplement business to another issuer shall be considered a discontinuance for the purposes of subsections 2216.5, 2216.6, 2216.7, 2216.8, 2216.9, and 2216.10.

2216.12

A change in the rating structure or methodology shall be considered a discontinuance under subsections 2216.5, 2216.6, 2216.7, 2216.8, and 2216.9, and 2216.10, unless the issuer complies with the following requirements:

(a) The issuer provides an actuarial memorandum, in a form and manner prescribed by the Commissioner, describing the manner in which the revised rating methodology and resultant rates differ from the existing rating methodology and existing rates.

(b) The issuer does not subsequently put into effect a change of rates or rating factors- that would cause the percentage differential between the discontinued and subsequent rates as described in the actuarial memorandum to change; and

(c) The Commissioner may approve a change to the differential that is in the public interest.

2216.13

Except as provided in subsection 2216.11;

(a) The experience of all policy forms or certificate forms of the same type in a Standard Medicare Supplement Benefit Plan shall be combined for purposes of the refund or credit calculation prescribed in section 2213;

(b) Forms-assumed under an assumption reinsurance agreement shall not be combined with the experience of other forms for purposes of the refund or credit calculation;

(c) An issuer shall not present for filing or approval a rate structure for its Medicare supplement policies or certificates issued after May 1, 1999 based upon a structure or methodology with any groupings of attained ages greater than one year. The ratio between rates for successive ages shall increase smoothly as age increases.

2216.14

An issuer shall file any riders or amendments to policy or certificate forms to delete outpatient prescription drug benefits as required by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 only with the commissioner in the state in which the policy or certificate was issued.

D.C. Mun. Regs. tit. 26, r. 26-A2216

Final Rulemaking published at 46 DCR 10175 (December 17, 1999); as amended by Final Rulemaking published at 50 DCR 4166 (May 30, 2003); as amended by Final Rulemaking published at 50 DCR 5882 (July 25, 2003); as amended by Final Rulemaking published at 53 DCR 2955(April 14, 2006)