Life and Health News
February 2022
Welcome to our latest newsletter! As a thought leader in the Insurance Industry for over 50 years we are always excited to share the latest sampling of insurance compliance related bulletins, regulations, and legislative activity. Please feel free to share this newsletter with others that may be interested. Contact Us with any questions on the items in this newsletter or with any other compliance related matter we can assist you with. Enjoy!
AGENT / PRODUCER LICENSING AND APPOINTMENT
Hawaii changed its administrative rules so that uniform terms and durations of licenses and registrations issued by the Department of Insurance are in place. This allows the Division to utilize electronic processing of fees. The changes are outlined in the Memorandum. Memorandum 2021-14LIC
ANNUITIES / ANNUITY CONTRACTS
Kentucky's Insurance Department issued an Advisory Opinion regarding the "Best interest of the Consumer" requirement for annuities. Advisory Opinion 2022-01
Pennsylvania approved the NAIC Model Regulation for Suitability in Annuity Transactions, also known as the "Best Interest" standard for consumers. SB 772
CYBERSECURITY
Louisiana's Insurance Department reminds insurers that certain domestic carriers are required to submit either a Louisiana Insurance Data Security Law Information Security Program Certification or an Exemption Certification Form by February 15, 2022. Bulletin 2021-04 (Revised and Reissued)
DEPARTMENT OF INSURANCE
Texas Department of Insurance requires individuals, agencies and companies regulated by it to designate an email address for official communications from the Department of Insurance, effective January 1, 2022. If emails may no longer be received at the designated address, the Department must be notified within 10 business days and provided with a new email address. 28 TAC Sec. 1.1302
DISASTER / CATASTROPHIC EVENT
Mississippi's Insurance Department announced that in the interest of public health and safety, insurers are not required to conduct any on-site reviews of managing general agents or third-party administrators in 2020, 2021 or 2022. Through calendar year 2022, insurers may conduct the required reviews through electronic means. Bulletin 2022-01
DISCLOSURE REQUIREMENTS
Federal Consolidated Appropriations Act (CAA) requires brokers and consultants supplying services to ERISA group health plans to disclose to plan sponsors the direct and indirect compensation they receive for providing services to the plans. The Department of Labor issued a bulletin containing questions and answers outlining its temporary enforcement policy for group health plan service provider disclosure under ERISA section 408(b)(2)(B). Field Assistance Bulletin 2021-03
DRUG / PRESCRIPTION COVERAGE
New York passed a bill that bans mandatory mail order and protects a patients' ability to use the pharmacy of their choice. SB 3566
FILING REQUIREMENTS / PROCEDURES
New Mexico's Superintendent of Insurance revised the manner in which certain material, information or filings submitted to the Life and Health Division can be classified as confidential. Bulletin 2022-001
FILINGS: HEALTH
Maryland Insurance Department provides guidance to insurers, nonprofit health service plans, HMOs, and dental plan organizations regarding filing requirements for individual and small employer form and rate filings for plan years beginning on and after January 1, 2023. Bulletin 22-02
HEALTH INSURANCE - COMPREHENSIVE
Alabama's Insurance Department provides guidance on several requirements for health insurance outlined in the Federal No Surprises Act. Bulletin 2022-01
Colorado requires carriers to provide access to COVID-19 vaccines without cost-sharing during the state's COVID-19 recovery. This applies to all carriers offering individual, small group, large group, student health and managed care plans. Third-party Administrators for self-funded plans are strongly encouraged to follow these requirements in order to create a uniform billing structure. Emergency Regulation 22-E-04, 3 CCR 702-4
Connecticut requires health plans to identify on the insurance card issued whether the coverage is fully insured or self-insured. This applies to health carriers and TPAs, including self-funded ERISA plan administrators that issue an ID card in Connecticut. SB 1202, Page 242
New Mexico's Insurance Department notifies health insurers to abide by the Biden-Harris Federal mandate for coverage of COVID-19 home tests. Bulletin 2022-002
Oregon's Department of Consumer and Business Services provided information on requirements in the federal No Surprises Act. Bulletin DFR 2022-1
Wisconsin's Insurance Commissioner issued a bulletin to all health plans regarding minimizing out-of-network barriers for patients seeking telemedicine services. Carriers are encouraged to not deny coverage for treatment or service provided through telehealth if that treatment or service is covered when provided in person by a health care provider. Bulletin dated January 20, 2022
MEDICARE SUPPLEMENT INSURANCE
Idaho amends it existing rule and implements the NAIC Model Medicare Supplement Insurance Minimum Standards Model Act. IDAPA 18.04.10 s 001
MISCELLANEOUS HEALTH / ACCIDENT
Federal Department of Labor (DOL), IRS, and Health & Human Services (HHS) issued a process guide for certified independent dispute resolution (IDR) under the No Surprises Act. The guide includes specifics on payment determination. Federal Independent Dispute Resolution (IDR) Process Guidance for Certified IDR Entities (Dec. 2021)
NONFORFEITURE
Pennsylvania updated the minimum nonforfeiture rate for individual deferred annuities, lowering that rate from 1% to .15%. This is the lowest interest rate guarantee an insurer can use to determine the cash value of an individual deferred annuity. SB 772
PHARMACY BENEFIT MANAGERS
Montana passed SB 395, the Pharmacy Benefit Manager Oversight Act and a regulation, Admin. R 6.67901. Because the licensing requirement is new for 2022, all PBMs must apply for a license and be approved. SB 395
New York passed a law which requires PBMs to: 1. Register and be licensed in the state. 2. Pass through all discounts, rebates and price concessions to health plans or providers. 3. Follow accreditation requirements that are not more stringent than state or federal laws, and 4. Follow additional requirements. SB 3762
PREMIUM TAX
New Hampshire's Insurance Department advises that the state will no longer offer Automated Clearing House Debit as an electronic method of payment for premium tax. Bulletin INS 22-002-AB
REPORTS - DATA CALLS & OTHER REPORTS
Arkansas Insurance Department posted information regarding Calendar Year 2022 Data Reporting for PBMs on its website, https://rhld.insurance.arkansas.gov/PBMRegulation. The deadline is March 1, 2022, regardless of certification participation through SERFF which was covered with a separate deadline in the past. Reporting Data Specifications published 1/4/2022
RESERVE VALUATION
Connecticut adopted the 2022 edition of the NAIC Valuation Manual, including adopted amendments. Bulletin FS-43
TRAVEL INSURANCE
Wisconsin updated its travel insurance law and adopted the model travel insurance act approved by the NAIC in 2018. It is newly classified as part of inland marine as well as accident and health lines if the policy includes sickness and disability coverage. A limited lines travel insurance producer license is designed for insurance intermediaries and travel administrators. It replaces the existing statutory law on limited lines travel insurance. The bill contains many other requirements. SB 482