TO:
ALL INSURERS OFFERING INSURANCE IN MARYLAND
FROM:
RALPH S. TYLER, COMMISSIONER
RE:
HEALTH CARE REGULATORY ASSESSMENT FOR FY 2009
AND
INSURANCE REGULATION ASSESSMENT FOR FY 2009
DATE:
FEBRUARY 5, 2008
The Maryland Insurance Administration (MIA) is in the process of preparing the Fiscal
Year 2009 assessments for the Health Care Regulatory Fund and the Insurance
Regulation Fund. The Health Care Regulatory Fund was created in FY 1999 to fund
expenses incurred by the MIA’s Appeals and Grievances Unit (including the Health
Advocacy Unit (HAU)), relative to Chapter 112, 1998 Laws of Maryland, on an ongoing
basis. Chapter 112 established the Appeals and Grievances Unit within the MIA and
expanded the duties and responsibilities of the HAU within the Attorney General's
Office.
The Health Care Regulatory Assessment shall be calculated using the approved MIA
Appeals and Grievances Unit budget (which includes the HAU budget) according to the
formulas set forth in the Insurance Article § 2-112.2 (c). In addition to federal
exclusions, a carrier issuing health insurance is allowed to exclude the following health
insurances from the amount currently listed in the annual report: Long-term care;
disability; accidental travel and accidental death and dismemberment; credit health; a
product for which payment of benefits is conditioned on a determination of medical
necessity made solely by the treating provider not acting on behalf of the carrier; and any
other product for which payment of benefits is not conditioned on a determination of
medical necessity. [Insurance Article § 2-112.2(a)(3)(ii)]
Chapter 774, 1998 Laws of Maryland established an Insurance Regulation Fund to pay all
costs and expenses incurred by the MIA that are related to its responsibilities to regulate
insurance activities of insurers licensed in this State. The correlating annual Insurance
Regulation Assessment is calculated according to the formulas set forth in Insurance
Article § 2-502 for each t