In conjunction with the Locke Lord COVID-19 task force, we are reviewing, analyzing, and compiling regulatory updates to provide clients easy access to information during this unprecedented time. If you have any questions on the subject matter below, do not hesitate to reach out. The information below relates to state and federal bulletins, emergency orders, pending/enacted legislation, and other related actions taken in response to the COVID-19 pandemic.
All Lines of Insurance
Indiana: On May 7, the Indiana Department of Insurance issued Bulletin 254 extending the 60-day moratorium on the cancellation or nonrenewal of insurance policies for the nonpayment of premium. The moratorium is extended from May 18 to May 31.
Tennessee: On May 6, Governor Lee issued Executive Order 34, extending Executive Order No. 16 to allow for government bodies to hold meetings remotely until June 30 to further mitigate the spread of COVID-19.
Tennessee: On May 7, Governor Lee issued Executive Order 35 amending Executive Order No. 30 to allow for the reopening of small group, non-contact entertainment, and recreational venues according to new Economic Recovery Group guidelines.
Michigan: On May 7, the Michigan Department of Insurance and Financial Services issued Bulletin 2020-24-INS related to 2021 rate filings for small and group markets, stating that, Michigan, as an Effective Rate Review state, will allow issuers to decide whether to include emerging experience related to COVID-19 in their rate development. Furthermore, issuers that decide to include COVID-19 experience must provide an exhibit which specifically details whether rates include COVID-19 experience and which describes the rating methodology. The exhibit must describe the rating and trending impact by Essential Health Benefit category and must include actuarial support.
Oregon: On May 5, the Oregon Department of Consumer and Business Services issued an Emergency Order for health insurance companies, requiring such companies to provide at least a 60-day grace period to pay any past due premiums, pay claims for any covered services during the first 30 days of the grace period, extend all deadlines for reporting claims and other communications, and provide members with communication options that meet physical distancing standards. The Order is in effect through June 3 and can be extended in 30-day increments.
Pennsylvania: On May 4, Pennsylvania Insurance Commissioner Altman issued a press release stating that the Insurance Department sent a letter to Pennsylvania’s Congressional delegation recommending federal actions to help provide stability and affordability to the insurance market for consumers and insurers. The Commissioner’s letter identified numerous steps Congress could take that would positively impact Pennsylvania individuals and families struggling to acquire or pay for coverage today and into the future. Additionally, the press release states that, the letter to Congress outlines the potential impact of COVID-19 on premiums increases beyond 2020, as 2021 insurance products are about to be filed with the department. In order to prevent COVID-19 from increasing premiums, the letter recommends the federal government implement a reinsurance program to cover high-cost claims as insurers attempt to forecast for 2021. The department further asks Congress to consider committing to cover the cost of a vaccine or other treatments developed in the future, to help prevent these hypothetical costs from being priced into 2021 premium rates.
Wyoming: On May 6, the Wyoming Department of Insurance issued a letter to consumers to provide guidance regarding health insurance options for employees who have lost their job either temporarily or permanently as a result of the COVID-19 pandemic.