Risk-Based Capital Applicability for 2012

MIA BULLETIN 12-29 DATE: December 28, 2012 TO: Presidents, Managed Care Organizations RE: Risk-Based Capital Applicability for 2012 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 their Annual Statement filings for the year ending December 31, 2012. This filing is due March 1, 2013. 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, 2012. 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 Lynn Beckner, Chief Financial Analyst, at (410) 468-2126. THERESE M. GOLDSMITH INSURANCE COMMISSIONER By: _ __ Neil A. Miller Associate Commissioner Examination and Auditing Section THERESE M. GOLDSMITH Commissioner KAREN STAKEM HORNIG Deputy Commissioner NEIL A. MILLER Associate Commissioner Examination and Auditing MARTIN O’MALLEY Governor ANTHONY G. BROWN Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 Direct Dial: 410-468-2090 Fax: 410-468-2020 Email: teresa.goldsmith@maryland.gov 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state.md.us Signature on original