Text Resize

-A +A
Bookmark and Share

DISB to Hold Public Hearing on Surplus Review of GHMSI

Tuesday, July 28, 2009

DISB to Hold Public Hearing on Surplus Review of GHMSI

The public hearing will be held on September 10, 2009 at 10 am to 5 pm at One Judiciary Square, 441 4th Street, NW, Suite 220 South.

(Washington, DC) – The DC Department of Insurance, Securities and Banking (DISB) today announced that the agency will hold a public hearing to determine whether the portion of GHMSI’s (Group Hospitalization and Medical Services, Inc.) surplus attributable to the District of Columbia is excessive under the Medical Insurance Empowerment Amendment Act (MIEAA). The public hearing will be held on September 10, 2009 at 10 am to 5 pm at One Judiciary Square, 441 4th Street, NW, Suite 220 South. It will continue on September 11, 2009, if necessary, at the Old Council Chambers. Under MIEAA, which became effective March 25, 2009, and amended the Hospital and Medical Services Corporation Regulatory Act of 1996, DISB has the authority to review the surplus of DC chartered hospital and medical services corporations (HMS) on an annual basis and determine whether the portion attributable to the District of Columbia is excessive under MIEAA.  Currently, the only HMS is GHMSI. “DISB has reviewed GHMSI’s previous year’s surplus and has found it to be greater than the minimum risk-based capital requirements for both the National Association of Insurance Commissioners (NAIC) and the Blue Cross/Blue Shield Association” said DISB Commissioner Thomas E. Hampton. GHMSI currently maintains a surplus level that meets the minimum risk-based capital requirements as recommended by the NAIC and Blue Cross/Blue Shield, along with an additional amount GHMSI believes is necessary to meet the company’s particular risks and contingencies as well as financial obligations and other needs. The purpose of the hearing is to determine whether the portion of GHMSI’s surplus attributable to the District is unreasonably large and inconsistent with the company’s community health reinvestment obligation under MIEAA. GHMSI, in advance of the hearing, will furnish DISB with a report on how the company determines the appropriate amount of surplus that it needs to meet its (1) statutory and corporate surplus requirements; (2) actuarially determined risk exposures; and (3) expected and unanticipated contingencies. The community will have an opportunity to testify at the hearing.  Interested persons who wish to testify should send a letter to DISB Hearing Officer, Mrs. Leslie Johnson, and copy Mr. Stephen Taylor, General Counsel, at the address listed below by close of business on Thursday, September 3, 2009.  If unable to attend the Public Hearing written comments must be received no later than September 18, 2009 at the same address. DC Department of Insurance, Securities and Banking810 First Street, NE, Suite 701 Washington, DC  20002 Persons interested in obtaining more information on the surplus review of GHMSI should follow the links listed below.  Please visit the agency website for up-to-date information.