Md. Code Regs. 31.17.03.10

Current through Register Vol. 51, No. 21, October 18, 2024

Section 31.17.03.10 - Determination of Plan Premium

A. The Board shall establish a premium rate for each standard benefit package in the Plan.

B. The Board may contract with an actuary to establish the premium rate for each standard benefit package in the Plan.

C. Standard Risk Rate.

(1) The Board shall establish a standard risk rate premium rate for each standard benefit package in the Plan.

(2) The standard risk rate for each standard benefit package in the Plan shall be developed by considering the premium rates charged by carriers in the State for coverage comparable to that of the standard benefit package.

(3) The Board may contract with an actuary to establish each standard risk rate.

D. Variations in Plan Premium.

(1) Except as permitted under §D(2) of this regulation, the premium rate for each standard benefit package in the Plan may vary only on the basis of family composition.

(2) If the Board determines that a standard risk rate would create market dislocation, the Board may adjust the premium rate based on member age.

E. The premium rate for each standard benefit package in the Plan may not:

(1) Be less than 110 percent of the standard risk rate; or

(2) Exceed 200 percent of the standard risk rate.

F. The premium rates for the Plan shall be reasonably calculated to encourage enrollment in the Plan.

Md. Code Regs. 31.17.03.10

Regulations .10 adopted as an emergency provision effective April 8, 2003 (30:9 Md. R. 609); emergency text amended effective July 1, 2003 (30:16 Md. R. 1072); adopted permanently effective December 22, 2003 (30:25 Md. R. 1851)
Regulation .10E amended effective January 7, 2013 (39:26 Md. R. 1666)