Compliance with Cancellation Notice Requirements and Change in Coverage or Premium Notice Requirements

DEPARTMENT OF THE STATE OF ALASKA STATE OF ALASKA DEPARTMENT OF COMMERCE COMMUNITY AND ECONOMIC DEVELOPMENT Alaska Division of Insurance Sean Parnell, Governor Susan K. Bell, Commissioner Linda S. Hall, Director # BULLETIN B 12-04 TO: INSURERS LICENSED TO TRANSACT HEALTH INSURANCE IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES RE: COMPLIANCE WITH CANCELLATION NOTICE REQUIREMENTS AND CHANGE IN COVERAGE OR PREMIUM NOTICE REQUIREMENTS The Division of Insurance has become aware that some insurers may not be complying with the following notice requirements that went into effect in Alaska on July 1, 2011. Sec. 21.36.225. Notice of health insurance coverage cancellation, coverage change, or premium change. (a) Except for a health care insurance policy subject to AS 21.51.400 or AS 21.54.130, an insurer may not cancel a health insurance policy unless the insurer provides written notice to a covered individual at least 45 days before the effective date of the cancellation. (b) An insurer shall provide written notice to a covered individual of changes in coverage or premium at least 45 days before the effective date of the change in coverage or premium. Note that the cancellation notice requirement in (a) is separate from the coverage or premium change notice requirement in (b). The coverage or premium change notice requirement in (b) applies to ALL health insurance policies, including health care insurance policies subject to AS 21.51.400 or AS 21.54.130. However, if a policy is subject to AS 21.51.400 or AS 21.54.130, health care insurers that cancel a health care insurance policy must comply with the discontinuation notice requirements provided in those sections but, for any changes in coverage or premium, health care insurers must comply with the 45-day notice in subsection (b). Note that failure to comply with Alaska laws including the notice requirements described above may result in administrative action. If you have questions regarding the information in this bulletin, please contact the division at (907) 465-2515, insurance@alaska.gov, or Alaska Division of Insurance, P.O. Box 110805, Juneau AK 99811-0805. DATE: May 22, 2012 Linda S. Hall Director 550 W. 7th Avenue, Suite 1560, Anchorage, Alaska 99501-3567 Telephone: (907) 269-7900 Fax: (907) 269-7910 Text Telephone: (907) 465-5437 Email: insurance@alaska.gov Website: http://www.commerce.state.ak.us/insurance/