Under the new process, insurers must submit rate alterations and justifications for rate increases beginning on Dec. 1, 2010. By Feb. 1, 2011, health insurers can submit such information electronically. The DOI has provided justification review standards that require insurers to provide all rating factors and methods.
Each rate filing must contain specified terms and content that include the scope and purpose of the filing; morbidity; mortality; underwriting; premium modelization rules, trend assumptions, and anticipated loss ratio. In addition, filing a new rate adjustment/justification will not constitute approval. The new program is funded by a $1 million HHS grant. In a recent news release, the DOI says it is committed to “improving the transparency of health insurance pricing in Illinois.” The business community and insurance Industry are expecting the Administration to introduce legislation on rate review during the November/December veto session.