Risk-Based Capital Applicability for MCOs in 2015

MIA BULLETIN 15-16 DATE: June 1, 2015 TO: Presidents, Managed Care Organizations RE: Risk-Based Capital Applicability for 2015 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, 2015. This filing is due March 1, 2016. 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, 2015. 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 Lynn Beckner, Chief Financial Analyst, at (410) 468-2126. AL REDMER, JR. INSURANCE COMMISSIONER By: _Original Signature on file_____ Michele T. Oshman Associate Deputy Commissioner AL REDMER, JR. Commissioner NANCY GRODIN Deputy Commissioner MICHELE T. OSHMAN Associate Deputy Commissioner LARRY HOGAN Governor BOYD K. RUTHERFORD Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 Telephone: 410-468-2010 Fax: 410-468-2020 Email: michele.oshman@maryland.gov 1-800-492-6116 TTY: 1-800-735-2258 www.insurance.maryland.gov