Commissioner William P. White of the Department of Insurance, Securities and Banking (DISB) today published in the DC Register the following Notice of Intent to review the surplus of the Group Hospitalization and Medical Services, Inc. (GHMSI), a subsidiary of CareFirst Inc: Notice of Hospital and Medical Services Corporation Surplus Review The Commissioner of the Department of Insurance, Securities and Banking (“the Department”) issues this notice of intent to review the surplus of the Group Hospitalization and Medical Services, Inc. (“GHMSI”), a subsidiary of CareFirst, Inc., pursuant to the authority provided in the Hospital and Medical Services Corporation Regulatory Act of 1996, effective April 9, 1997 (“HMSCR Act”), (DC Law 11-245; DC Official Code §§ 31- 3501 et seq.), as amended by the Medical Insurance Empowerment Amendment Act of 2008 (“MIEAA”), effective March 25, 2009 (DC Law 17-369; DC Official Code §§ 31-3501 et seq.). GHMSI is a hospital and medical services corporation chartered by Congress and subject to the surplus review set out in the HMSCR Act and related regulations issued by the Department. The Department last conducted a surplus review of GHMSI’s surplus as of December 31, 2008. On October 29, 2010, the Department issued a Final Decision and Order (09-MIE-007), which is available at: The Department will publish in the DC Register a notice of its intent to conduct a hearing pursuant to the authority provided at DC Official Code § 31- 3506(e)(2) in advance of the 45-day notice requirement, as provided under 26 DCMR §A4602.1 (published at 56 D.C. R.8841 (Nov. 13, 2009)). In preparation for the hearing, the Commissioner will direct GHMSI to address in the written report it will file prior to the hearing as provided at 26 DCMR §A4602.2, the amount and calculation used to determine the reasonableness of its surplus balances in order to conduct its business. The written report should also update details of the appropriate level of surplus necessary for the GHMSI to meet its: (1) statutory and corporate surplus requirements; (2) actuarially determined risk exposures; and (3) expected and unanticipated contingencies, including the impact of federal health care reform and any District of Columbia laws enacted or promulgated to implement the federal requirements. Further, the written report should also include an update to the community health reinvestment expenditures, premium taxes paid, and the company’s contribution to the open enrollment program. All press inquiries may be addressed to Supervisory Public Affairs Specialist Michelle Phipps-Evans at (202) 442-7822 or [email protected] or @DCDISB.
DISB Publishes Notice of Intent on GHMSI Surplus Review
Friday, January 20, 2012
DISB has the authority to review the surplus of DC chartered hospital and medical services corporations on an annual basis and determine whether the portion attributable to the District of Columbia is excessive under MIEAA.