Bulletin No. LH 2011-03: Oklahoma Small Employer Health Reinsurance Program

OKLAHOMA INSURANCE DEPARTMENT STATE OF OKLAHOMA Five Corporate Plaza, 3625 NW 56th, Suite 100 OKLAHOMA CITY, OK 73112 (405) 521-3681 IN STATE 1-800-522-0071 FAX (405) 522-3761 BULLETIN NO. LH 2011-03 TO: ALL INSURERS WRITING HEALTH INSURANCE ALL HMOS OFFERING HEALTH PRODUCTS RE: OKLAHOMA SMALL EMPLOYER HEALTH REINSURANCE PROGRAM FROM: OKLAHOMA INSURANCE DEPARTMENT DATE: JUNE 13, 2011 In 2010, the Oklahoma legislature enacted legislation to terminate the Small Employer Health Reinsurance Program. The legislation amended 36 O.S. § 6522 to require the Oklahoma Small Employer Health Insurance Program Board (Board) to wind up the affairs of the program, to account for the funds and expenses of the program, and to reimburse any remaining funds or monies from the initial assessment to the reinsuring carriers. The Board met on June 3, 2011 and developed a plan to wind up the Program. The Board determined that after payment of the Program’s final expenses, the remaining funds should be distributed to carriers existing as of November 1, 2010 according to the existing assessment formula. The assessment formula is proportional, based on a carrier’s total earned premium in the small employer market. Determination of the small employer health carriers and their proportional share of the small employer market, as of December 31, 2010, will be based upon information that small employer carriers are required to report to the Oklahoma Insurance Department. Distribution of the funds is expected to take place during the month of July, 2011. Questions or comments applicable to this bulletin should be directed to Susan Dobbins, Assistant General Counsel, Oklahoma Insurance Department, Five Corporate Plaza, 3625 NW 56th, Suite 100, Oklahoma City, OK 73112, susan.dobbins@oid.ok.gov. The Oklahoma Insurance Department encourages readers of this notice to periodically check the Department’s web site http://www.ok.gov/oid/ for news and updates to Bulletins and other relevant material.