Revision to Regulation--Limitation on Implementing Rate Increases

BULLETIN

To:

Medicare Supplement Insurers

Re:

Revision to Regulations--Limitation on Implementing Rate Increases

Date:

February 15, 2000

Bulletin:

Life and Health 00-3

On December 10, 1999, this Administration issued Bulletin 99-23, describing

emergency amendments to COMAR 31.10.06, Standards for Medicare Supplement

Policies. The amendments affected the manner in which insurance companies and

nonprofit health service plans could implement rate increases for Medicare supplement

policies and certificates in Maryland.

In response to comments from the industry, the emergency amendments have been

changed. The amendments continue to be emergency amendments and will have an

effective date of January 1, 2000. For your convenience, attached is the text of the

emergency amendments to COMAR 31.10.06.

The amended regulations prohibit carriers from increasing premiums under new

individual policies or new group certificates until at least one year after the effective date

of the individual policy or group certificate. For existing contracts, the amended

regulations prohibit the implementation of rate increases more than once each year.

If you have any questions on this matter, you may direct them to Brenda Wilson, Chief

of Managed Care at (410) 468-2212.

________________________

Donna B. Imhoff

Associate Commissioner

Life and Health

Attachment