NC H854

Prohibits insurers offering health benefit plans in North Carolina from imposing preexisting condition exclusions on individual, large group, or small group coverage.

Requires insurers to accept every eligible employer and individual in the state who applies for coverage.

Restricts premium rate development to only four factors: individual vs. family coverage, geographic rating area, age (with a maximum 3:1 rate variation for adults), and tobacco use (with a maximum 1.067:1 rate variation).

Limits premium adjustments on individual and small group market plans to annual increases unless changes reflect enrollment, family composition, geographic area, tobacco use, plan changes requested by insured, or changes required by federal or state law.

The Department of Insurance may adopt rules to implement the act and ensure rating practices comply with its requirements; the act is effective upon enactment.