Additional funding: Eligibility based on amount of assessment needed; Board to establish formula for additional assessments on all carriers.
1. If, in each of 2 consecutive years, the Board determines that the amount of the assessment needed exceeds 5 percent of the total premiums earned in the previous calendar year from health benefit plans delivered or issued for delivery to small employers by reinsuring carriers, the Program of Reinsurance is eligible for additional funding pursuant to this section.
2. If, in each of 2 consecutive years, the Board determines that the amount of the assessment needed exceeds 5 percent of the total premiums earned in the previous calendar year from health benefit plans delivered or issued for delivery to individuals by individual reinsuring carriers, the Program of Reinsurance is eligible for additional funding pursuant to this section.
3. To raise the additional funding, the Board shall establish a formula pursuant to which additional assessments may be made on all carriers that offer a health benefit plan or provide stop-loss coverage for a health benefit plan which is an employer-sponsored plan or a plan established pursuant to the Labor-Management Relations Act, 1947, as amended. The total additional assessments on all such carriers combined may not exceed one-half of 1 percent of the total premiums earned from all health benefit plans and stop-loss coverage issued in this state in the previous calendar year.
Last modified: February 27, 2006