California Health and Safety Code 1358.146 – The following format shall be used for reporting loss ratio …
The following format shall be used for reporting loss ratio experience:
MEDICARE SUPPLEMENT
HEALTH CARE SERVICE PLAN
CONTRACT EXPERIENCE EXHIBIT
For the year ended December 31, 20__.
For the State of California.
Of the ____ health care service plan.
Address (City, State, and Zip Code) ____
Person Completing this Exhibit ____
To be filed by June 30th following the filing under § 1358.14 of the Health and Safety Code.
Terms Used In California Health and Safety Code 1358.146
- Contract: A legal written agreement that becomes binding when signed.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: means any person, individual, firm, association, organization, partnership, business trust, foundation, labor organization, corporation, limited liability company, public agency, or political subdivision of the state. See California Health and Safety Code 1345
- plan: refers to health care service plans and specialized health care service plans. See California Health and Safety Code 1345
- Plan contract: means a contract between a plan and its subscribers or enrollees or a person contracting on their behalf pursuant to which health care services, including basic health care services, are furnished. See California Health and Safety Code 1345
- State: means the State of California, unless applied to the different parts of the United States. See California Health and Safety Code 23
Costs for Health Care Services |
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Prepaid or |
Percentage |
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Periodic |
of Prepaid |
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Charges |
or Periodic |
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Classification |
Earned |
Amount |
Charges Earned |
Experience on 1. _____ Contracts issued _____ Reporting State _____ Nationwide 2. _____ Contracts issued _____ Reporting State _____ Nationwide Experience on Group 1. _____ Contracts Issued _____ Reporting State _____ Nationwide 2. _____ Contracts Issued _____ Reporting State _____ Nationwide The undersigned officer hereby certifies that the company named Signature Title and name (please type) |
INSTRUCTIONS FOR COMPLETING MEDICARE SUPPLEMENT HEALTH CARE SERVICE PLAN CONTRACT EXPERIENCE EXHIBIT
1. Experience on plan contracts issued more than three years prior to the reporting year should be shown separately as indicated on the form. For example, for the reporting year ended 12/31/88 (filed on June 30, 1989), experience on plan contracts issued in 1985 and prior should be shown separately from that of plan contracts issued in 1986 and later. For group coverage, the year of issue should be based on when the contract was issued if available; otherwise use the master plan contract year of issue.
2. Allocation of reserves on a state-by-state basis should be on sound actuarial principles and be consistent from year to year.
3. Membership or plan contract fees, if any, constitute, and should be included with, prepaid or periodic charges earned. Earned prepaid or periodic charges may be shown on an annual basis net of loadings for nonannual modes.
4. Mass marketing group coverage subject to individual loss ratio standards should be included with individual plan contracts.
5. Any dividends paid to subscribers should be included with costs for health care.
6. Neither costs for health care services nor earned prepaid or periodic charges should be adjusted for changes in plan contract (additional) reserves.
DEFINITIONS
For purposes of this form:
1. “Costs for health care services” means payment for health care services plus the increase in claim reserves. Claim reserves include only those unpaid liabilities for claims that have already been incurred. Costs for health care services in this exhibit do not include plan contract additional reserves.
(Added by Stats. 2000, Ch. 706, Sec. 2. Effective January 1, 2001.)