IN THE MATTER OF:
REGULATION TO IMPLEMENT MEDICARE
SUPPLEMENT INSURANCE MINIMUM
STANDARDS MODEL ACT, INSURANCE
REGULATION 96-103, AS AMENDED
CAUSE NO. 01-4234
ORDER
This cause came before the Commissioner of Insurance to consider the adoption of Mississippi Department of Insurance Emergency Regulation Number 96-103, as Amended, entitled "Regulation to Implement Medicare Supplement Insurance Minimum Standards Model Act", and the Commissioner of Insurance, having fully considered the evidence before him in view of the public health, safety and welfare of the citizens of the State of Mississippi, finds as follows, to-wit:
I.
That in November of 1999 Congress adopted two acts, the Balanced Budget Refinement Act (BBRA) and Ticket to Work Incentives Improvement Act (TWWIIA) amending Section 1882 of the Social Security Act (SSA), which governs Medicare Supplement Insurance (Medigap). Both acts became effective upon signature by the President on November 29, 1999 and December 17, 1999, respectively.
II.
That Section 1882(b)(1) of the Social Security Act provides requirements for certification of a state regulatory program by the Secretary of the United States Department of Health and Human Services. One such requirement is state adoption of standards equal to or more stringent than the NAIC Model Regulation, as it appears in the April 29, 1998 Federal Register. State regulatory programs are also required, under Section 1882(b)(1)(B), to include requirements equal to or more stringent than subsections (o) through (t) of Section 1882, which incorporates by reference, the heightened standards created by the BBRA and TWWIIA.
III.
That the two acts did not direct the NAIC to amend its Model Regulation to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act nor did it provide for a transition period for state's adoption of conforming amendments into their regulations in order to maintain certification.
IV.
That the Healthcare Financing Administration (HCFA) agreed that states could have one year after the NAIC adopted an amended regulation to change its regulations to comply with the amended model regulation. The NAIC adopted the amended model regulation on September 26, 2000.
V.
That in order for the Department to adopt an amended regulation encompassing the above described changes to Section 1882 of the Social Security Act by September 26, 2001, the Department must follow the emergency procedures set forth under Miss. Code Ann. § 25-43-7(2) (Rev. 1999), which allows a regulation to be adopted by the Department without following the notice periods prescribed under Sections 25-43-7(1) and 25-43-9(2).
VI.
That it would clearly constitute an imminent peril to the public health, safety and welfare should the Department lose its certification from the Department of Health and Human Services for its Medicare supplement regulatory program because the regulation was not adopted by September 26, 2001.
VII.
That the Commissioner, after having considered all relevant evidence, is of the opinion that it would be in the public interest to adopt Emergency Regulation Number 96-103, as Amended, entitled "Medicare Supplement Insurance Minimum Standards Model Act", a copy of which is attached hereto as Exhibit "A" and fully incorporated herein by reference.
IT IS, THEREFORE, ORDERED that Mississippi Department of Insurance Emergency Regulation 96-103, as Amended, should be, and same is hereby adopted, to become effective immediately upon filing with the Secretary of State's Office of Mississippi.
SO ORDERED, this the 28th day of August, 2001.
George Dale
Commissioner of Insurance
Mississippi Department of Insurance