What information does the Maryland Insurance Administration examine when reviewing a rate increase request?
When reviewing a rate filing, the Maryland Insurance Administration's actuaries examine the data, methods, and assumptions used by the health insurance company to support that requested rate. The company must explain and justify any significant changes from prior filings. In addition, the Maryland Insurance Administration examines:
• the proposed rates and benefits to make sure they follow Maryland law;
• changes in the number of members covered under the policies;
• changes in medical and pharmacy costs;
• past and future administrative expenses;
• changes in cost sharing;
• changes in benefits;
• historical profits, future profit goals, and any changes from previous rate filings;
• history of loss ratios (a loss ratio is the percentage of premium that is used to pay claims);
• history of rate changes;
• the company’s financial strength;
• the accuracy of the calculations supporting the rate increase;
• the future estimated loss ratio using the requested premium rates to make sure it meets the minimum requirement in Maryland; and
• any other factors that contribute to the requested rate increase.