Kentucky Rate Review Grants Award List
Cycle I Grant Application Summary
Kentucky Grantee: Kentucky Department of Insurance
Award Date: August 16, 2010
Award Amount: $1,000,000
- Pursue Additional Legislative Authority: Kentucky will propose legislation to expand the health insurance premium review process to the large group market. In addition, actuarial consultants will evaluate whether revision or extension of laws are needed to enhance the review process.
- Expand the Scope of the Review Process: Currently large groups (more than 50 members) are only required to file their health insurance premium methodologies with the State. Kentucky will increase the number of categories required to file and will expand its review of large group health insurance premium filings to include analysis of rate factors.
- Improve the Review Process: Kentucky can currently collect and report on only a small portion of the health insurance premium filings. The State will increase the amount of data to be provided in filings and will modify the review process to include consideration of plan years, underwriting issues and policy forms.
- Increase Transparency and Accessibility: Currently, information about health insurance premiums is not readily available to the public. Kentucky will develop a publication to explain the review process, including the information submitted by insurers and reviewed by the Department of Insurance. The Department will make information available to the public, in plain language, to give notice of specific health insurance premiums increases and decreases. In addition, the State will conduct surveys and hold open meetings for consumers in order to determine what information would be useful for them to make well-informed health insurance decisions.
- Develop and Upgrade Technology: Kentucky will collect and analyze data to help with the rate review process.
Cycle II Grant Application Summary
Kentucky Grantee: Kentucky Department of Insurance
Award Date: September 20, 2011
Total Award: $3,225,170
Baseline Award: $3,000,000
Workload Award Amount: $225,170
- Introduce legislation: Kentucky will amend 806 KAR 17:150 ,and any related statute, to increase the scope of data collected in the large group market and additional data, such as claims data, in other markets.
- Expand scope of rate review: Kentucky will amend State regulations to collect more information from large group insurers and will make filing requirements applicable to non-major medical benefit plans such as student health plans.
- Improve rate filing requirements: Kentucky will implement regulatory changes to require insurers to justify how they select and modify claims data, and allow the Department of Insurance to request additional data used to make trend predictions. Kentucky is also considering requiring insurers to report and justify administrative expenses in a more detailed manner.
- Improve transparency and consumer interfaces: Kentucky proposes to establish on its website a mechanism to allow consumers to request an email whenever a filing is received by the Department. The State will also enhance its website further to allow consumers access to rate filings without going through the open records process. The State continues to assess how to best educate the public on the rate review process.
- Hire new staff: Kentucky will create 1 new position with Cycle II grant funding; this position is in addition to the 6 positions created with Cycle I resources.
- Improve IT: Kentucky will enhance its IT systems to automate analysis of rate increases, and will enhance its internal database to house all rate filings electronically, including consumer comments.
Last updated: September 21, 2012