Arkansas Rate Review Grants Award List
Cycle I Grant Application Summary
Arkansas Grantee: Arkansas Insurance Department
Award Date: August 16, 2010
Award Amount: $1,000,000
- Pursue Additional Legislative Authority: Arkansas currently has prior approval over individual market rates. Arkansas will seek authority to review small group rates.
- Improve the Review Process: Currently Arkansas conducts prospective review of individual coverage and intervenes for health insurance premium increases above 10 percent. The State will work with consultants to develop a more thorough review process for filings.
- Increase Transparency and Accessibility: At present, the State publishes approval and disapproval of health insurance premiums on its website and requires 30 days public notice for increases in health insurance premiums prior to implementation – but no details are published. Arkansas has proposed to create and staff a consumer-driven advisory council to improve transparency and communications to all stakeholders. The State will also expand its website and create a health insurance premium review center for consumers and issuers.
- Develop and Upgrade Technology: Arkansas will enhance technology and programmatic infrastructure to effectively collect, analyze, track and report health insurance rate filings and establish a data center to compile and publish fee schedule information.
Cycle II Grant Application Summary
Arkansas Grantee: Arkansas Insurance Department
Award Date: September 20, 2011
Total Award: $3,874,098
Baseline Award: $3,000,000
Workload Award Amount: $274,098
Performance Award Amount: $600,000
- Expand scope of rate review: Arkansas will develop processes and procedures to fully implement Bulletins 6-2011 and 7-2011 which provide prior approval authority over the individual and small group markets. Arkansas will add rigor and structure to the current Arkansas Insurance Department rate review process and will track and analyze the Medical Loss Ratio filings to determine the impact of rebates on rates.
- Improve rate filing requirements: Arkansas will require issuers to publically justify increases. These justifications will be consumer friendly and displayed on the Arkansas Insurance Department website.
- Improve transparency and consumer interfaces: Arkansas will post on its website details regarding all individual and small group rate filings, including plain language summaries. The State will provide a notice and comment period to consumers for all rate filings. Arkansas will further bolster outreach to consumers through a media center for consumer education, a user-friendly rate review website and brochure for consumers, and a Consumer Advisory Council to improve transparency and communication.
- Hire new staff: Arkansas will create 3 new positions with Cycle II grant funding; these positions are in addition to the 3 new positions created with Cycle I resources.
- Improve IT: Arkansas will develop a new rate review website for consumers and will develop and upgrade existing technology to streamline data sharing in order for the State to meet reporting requirements.
Last updated: September 21, 2012