DAR File No. 38789

Insurance, Administration

Rule R590-255

Utah NetCare Alternative Coverage Notification Rule

Notice of Proposed Rule

(Repeal)

DAR File No.: 38789
Filed: 08/15/2014 03:50:55 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The statute requiring this rule, Section 31A-22-724, has been repealed.

Summary of the rule or change:

This rule was developed to comply with Section 31A-22-724 requiring health insurers to notify employers of their employees option for alternative coverage through Utah NetCare. Utah NetCare no longer exists and Section 31A-22-724 was repealed from the law in H.B. 47 in the 2013 General Legislative Session, Insurance Law Amendments. Therefore, this rule is no longer necessary and is repealed in its entirety.

State statutory or constitutional authorization for this rule:

• Section 31A-22-724

Anticipated cost or savings to:

the state budget:

The repeal of this rule will have no fiscal impact on the department or the state's budget. It required insurers to send letters to employers they insured to inform them and their employees of alternative coverage through Utah NetCare, which no longer exists.

local governments:

This rule had no impact on local governments. It dealt solely with the relationship between the department, their health insurance company licensees and the employers insured with the health insurance company.

small businesses:

Individuals and agencies are not impacted financially by this rule. Only health insurance companies licensed with the department.

persons other than small businesses, businesses, or local governmental entities:

Health insurance companies doing business in Utah were required to send letters to employers they insured, as well as their employees, if asked to do so. The letter made them aware of alternative coverage offered by Utah NetCare. Now that they do not need to send the letter out, health insurers will save on preparation and distribution costs. The savings to insurers will vary according to the number of employer groups and their employees they sent letters to. This would not be a major expense.

Compliance costs for affected persons:

Health insurance companies doing business in Utah were required to send letters to employers they insured, as well as their employees, if asked to do so. The letter made them aware of alternative coverage offered by Utah NetCare. Now that they do not need to send the letter out, health insurers will save on preparation and distribution costs. The savings to insurers will vary according to the number of employer groups and their employees they sent letters to. This would not be a major expense.

Comments by the department head on the fiscal impact the rule may have on businesses:

The elimination of this requirement will save health insurers some time and money in preparation and mailing costs. It will not be a significant savings.

Todd E. Kiser, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/01/2014

This rule may become effective on:

10/08/2014

Authorized by:

Todd Kiser, Commissioner

R590. Insurance, Administration.

[R590-255. Utah NetCare Alternative Coverage Notification Rule.

R590-255-1. Authority.

This rule is promulgated pursuant to Section 31A-22-724 wherein the commissioner shall develop a model letter.

 

R590-255-2. Purpose and Scope.

(1) The purpose of this rule is to adopt a model letter for insurers to provide to employers as required by Section 31A-22-716 to notify an employee of the employee's options for alternative coverage.

(2) This rule applies to all accident and health insurers doing business in Utah that are required to offer alternative coverage pursuant to Section 31A-22-724.

 

R590-255-3. General Instructions.

(1) An insurer shall provide an employer:

(a) a letter that explains alternative coverage; or

(b) the Utah NetCare: Utah's Alternative Coverage letter.

(2) The letter required by this Subsection (1) shall be provided:

(a) to an employer at renewal;

(b) when requested by an employer; and

(c) when requested by an employee.

 

R590-255-4. Enforcement Date.

The commissioner will begin enforcing this rule 45 days from the rule's effective date.

 

R590-255-5. Penalties.

A person found, after a hearing or other regulatory process, to be in violation of this rule shall be subject to penalties as provided under 31A-2-308.

 

R590-255-6. Severability.

If any provision of this rule or its application to any person or situation is held to be invalid, that invalidity shall not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be severable.

 

KEY: insurance alternative coverage, NetCare

Date of Enactment or Last Substantive Amendment: February 9, 2010

Authorizing, and Implemented or Interpreted Law: 31A-22-724]