SB 908 Summary

• Requires health care service plans and insurers to notify small group and individual policyholders in writing if the Department of Managed Health Care or Department of Insurance determines a rate increase is unreasonable or not justified, using a standardized notification format developed by the respective departments.

• Extends rate filing timelines to 120 days prior to rate implementation for grandfathered individual and all small group plans, and requires nongrandfathered individual plans to file 100 days before the applicable open enrollment period or on the federal guidance date, whichever is earlier.

• Reduces advance notice requirement for individual health care service plan contracts and health insurance policies from 15 days to 10 days prior to the annual enrollment period, or 60 days prior to contract renewal, whichever occurs earlier.

• Requires insurers and health plans to respond to information requests from regulators within 5 business days and mandates regulatory determinations on rate increases within 60 days for most products, or 15 days before open enrollment for nongrandfathered individual policies.

• Authorizes regulators to determine a rate increase is unreasonable or not justified if the plan or insurer fails to provide all necessary information for review within specified timeframes.