Risk Based Capital Applicability for 2009

MARTIN O'MALLEY Governor ANTHONY G. BROWN Lt. Governor [LOGO] INSURANCE ADMINISTRATION BETH SAMMIS Acting Commissioner KAREN STAKEM HORNIG Deputy Commissioner LESTER C. SCHOTT Associate Commissioner Examination and Auditing 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 Direct Dial: 410-468-2119 Fax: 410-468-2101 Email: lschott@mdinsurance.state.md.us 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state.md.us # MIA BULLETIN 10-08 DATE: February 18, 2010 TO: Presidents, Managed Care Organizations RE: Risk Based Capital Applicability for 2009 CC: Chief Financial Officers, Managed Care Organizations On July 5, 2001, the Insurance Commissioner adopted Regulation .02-1 under COMAR 31.12.06 Managed Care Organizations-Financial Compliance Requirements, effective August 20, 2001. This regulation required that effective with the Annual Statement filed for the year ending December 31, 2001, an MCO shall comply with the risk-based capital requirements of the Insurance Article, Title 4, Subtitle 3 of the Annotated Code of Maryland, unless exempted by the Insurance Commissioner. MCOs are required to submit a risk-based capital report in conjunction with the Annual Statement filing for the year ending December 31, 2009. This filing is due March 1, 2010. At the request of the Department of Health and Mental Hygiene, the Insurance Commissioner is granting MCOs an exemption from meeting the risk-based capital requirements for the year ending December 31, 2009. In this regard, the Insurance Commissioner will not take action against an MCO based solely on the information contained in the risk-based capital report. Any questions about this bulletin should be directed to the Examination and Auditing Section at (410) 468-2119. BETH SAMMIS ACTING INSURANCE COMMISSIONER Lester C. Schott ©