NAIC Health Risk-Based Capital Working Group Meeting Report: July 6
Jul 7, 2009
On Monday, July 6, 2009, the National Association of Insurance Commissioners (“NAIC”) Health Risk-Based Capital Working Group met to consider changes to the 2009 NAIC Health Risk-Based Capital Report (“Report”) for adoption, as well as hear an update on federal Medicaid legislation from the American Academy of Actuaries (“AAA”).
Major changes to the Report include:
- A health risk-based capital trend test was added to the health risk-based capital calculation;
- The annual statement’s hybrid securities section was moved to a new line; and
- Medicare Part D prescription drug coverage risk factors were updated.
The revised Report was adopted by the Working Group with no discussion. A copy of the revised Report and supporting materials is attached.
During his update on federal Medicaid legislation, the AAA representative explained that the AAA is in the process of collecting information on the effects that United States House Resolution 904 would have on the health insurance industry. If passed the bill, known as the “Medicaid Prescription Drug Rebate Equalization Act of 2009,” would lower prescription drug costs by providing state Medicaid managed care programs with the same prescription drug rebates offered under traditional state-administered fee-for-service plans.
The meeting was then adjourned.
Should you have any questions or comments, please contact Colodny Fass.
To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com