Revision to Regulations--Limitations on Implementing Rate Increases

BULLETIN To: Medicare Supplement Insurers Re: Revision to Regulations--Limitation on Implementing Rate Increases Date: December 10, 1999 Bulletin: Life and Health 99-23 _____________________________________________________________________ We would like to bring to your attention emergency amendments to COMAR 31.10.06, Standards for Medicare Supplement Policies, which are scheduled to become effective January 1, 2000. The amendments to the regulations prohibit carriers from implementing rate increases at other than anniversary dates. For individual coverage, the rates may be increased only on the policy anniversary; for group coverage, the rates may be increased only on the certificate anniversary. The reason for the emergency status of these amendments is to protect the large number of senior citizens in Maryland who are losing their Medicare HMO coverage as of January 1, 2000. The amended regulations will protect these citizens from a premium increase shortly after purchasing a new Medicare supplement policy. A copy of the regulations, as they are expected to appear in the Maryland Register, is attached for your convenience. If you have any questions on this matter, you may direct them to Brenda Wilson, Chief of Managed Care at (410) 468-2170. ________________________________ Donna B. Imhoff Associate Commissioner