Risk-Based Capital Applicability for 2014

MIA BULLETIN 14-12 DATE: April 22, 2014 TO: Presidents, Managed Care Organizations RE: Risk-Based Capital Applicability for 2014 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, a Managed Care Organization (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 on March 1 of every year. An MCO may request that the Insurance Commissioner grant a one-year exemption to the risk-based capital financial requirements, ending December 31, 2014, by submitting a written request accompanied by the MCO’s projection indicating how and when it will meet all of the risk-based capital level requirements. This request and all documentation should be submitted to the Insurance Commissioner and the Department of Health and Mental Hygiene. The Insurance Commissioner will issue a letter of determination either granting or disallowing an exemption from the risk-based capital financial requirements to the requesting MCO and the Department of Health and Mental Hygiene. THERESE M. GOLDSMITH Insurance Commissioner KAREN STAKEM HORNIG Deputy Commissioner CHRISTOPHER W. BUCHANAN Associate Commissioner Examination & Auditing MARTIN O’MALLEY Governor ANTHONY G. BROWN Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202-2272 Direct Dial: 410-468-2129 Fax: 410-468-2101 Email: chris.buchanan@maryland.gov 1-800-492-6116 TTY: 1-800-735-2258 www.mdinsurance.state md.us Any questions about this bulletin should be directed to Lynn Beckner, Chief Financial Analyst, at (410) 468-4126. THERESE M. GOLDSMITH INSURANCE COMMISSIONER BY: _ Christopher W. Buchanan Associate Commissioner Examination and Auditing Section Signature on Original