Docket No. G2011-04
Proposed New Regulation 211 CMR 149.00 - Annual Comprehensive Financial Statements Pursuant to M.G.L. c. 176O, § 21
Pursuant to Massachusetts General Laws Chapter 30A and the authority granted to the Commissioner of Insurance by SECTION 40 of Chapter 288 of the Acts of 2010 ("SECTION 40") and M.G.L. c. 176O, § 21, a hearing will be held at the offices of the Division of Insurance, 1000 Washington Street, Boston, MA 02118-6200 on March 16, 2011 at 11:30 a.m. The purpose of this hearing is to afford all interested persons an opportunity to provide oral and/or written comment regarding the proposed adoption of new regulation 211 CMR 149.00, Annual Comprehensive Financial Statements Pursuant to M.G.L. c. 176O, § 21. The proposed new regulation sets forth the form and content of the annual comprehensive financial statements and appendices thereto to be submitted to the Division of Insurance ("Division") by health insurance carriers pursuant to M.G.L. c. 176O, § 21 or before April 1 of each year and governs any and all public hearings commenced in connection therewith.
Pursuant to SECTION 68 of Chapter 240 of the Acts of 2010, a small business impact statement is required to be included in this Notice of Hearing. The Division estimates that 211 CMR 149.00 Proposed (Clean) will be applicable to approximately 50 small businesses in the Commonwealth. This number includes all Massachusetts domestic insurance companies licensed to write health insurance (all kinds), health maintenance organizations, Blue Cross and Blue Shield of Massachusetts, Inc., vision service plans and dental service plans. Third-party administrators (TPAs) will also be impacted by this regulation but, at this time, the Division neither regulates these entities nor has an accurate count of the number of TPAs in the Commonwealth. The Division estimates that the projected reporting, record keeping and administrative costs required for compliance with 211 CMR 149.00 will have an effect on a substantial number of small businesses as the regulation will require some small businesses to file an annual comprehensive financial statement with the Division. It is not the proposed regulation that creates this cost, however, but the underlying statute, M.G.L. c. 176O, § 21, which requires small businesses to submit the annual comprehensive financial statements to the Division. 211 CMR 149.00 is drafted in a performance standards format because SECTION 40 and M.G.L. c. 176O, § 21, relative to annual comprehensive financial statements, permit the Commissioner of Insurance to adopt criteria for the standardized reporting and uniform allocation methodologies among carriers. The Division is not aware of any conflicts between 211 CMR 149.00 and existing Division regulations or existing regulations of another agency or department of the Commonwealth. The Division is not aware of whether 211 CMR 149.00 is likely to deter or encourage the formation of new businesses in the Commonwealth. The Division invites and encourages comments from small businesses in the Commonwealth concerning the final promulgation of 211 CMR 149.00, particularly as to the following: (1) whether 211 CMR 149.00 could establish less stringent compliance or reporting requirements for small businesses; (2) whether 211 CMR 149.00 could establish less stringent schedules or deadlines for compliance or reporting requirements for small businesses; (3) whether 211 CMR 149.00 could consolidate or simplify compliance or reporting requirements for small businesses; (4) whether 211 CMR 149.00 is likely to deter or encourage the formation of new businesses in the Commonwealth; and (5) what alternative regulatory methods, if any, may be used to minimize the adverse impact of 211 CMR 149.00 on small businesses.
The proceedings concerning the proposed promulgation of regulation 211 CMR 149.00 shall be designated as Docket No. G2011-04. Any person who wishes to provide oral comment concerning this regulation must file a Notice of Intent to Comment with the Docket Clerk no later than March 14, 2011. Persons wishing to submit written comments may do so until the record of the hearing is closed. All submissions must be sent to the Docket Clerk, Hearings and Appeals, Division of Insurance, 1000 Washington Street, Suite 810, Boston, MA 02118-6200, or by electronic mail to Doidocket.Mailbox@state.ma.us and must refer to Docket No. G2011-04 in the subject line. Persons who do not file a Notice of Intent to Comment will be heard after those who notify the Division in advance of the hearing.
A copy of the proposed regulation is available from the Division and also is posted on its website at: www.mass.gov/doi.
Dated: February 15, 2011
Joseph G. Murphy
Commissioner of Insurance