Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Rules and Regulations 82277 

State and county Location and case 

No. 

Date and name of newspaper 

where notice was published Chief executive officer of community Effective date of modification 

Community 

No. 

Catawba ........... City of Newton (10– 

04–2641P).

July 7, 2010; July 14, 2010; 

The Observer News-Enterprise.

The Honorable Robert A. Mullinax, 

Mayor, City of Newton, 401 North Main 

Avenue, Newton, NC 28658.

July 30, 2010 .................. 370057 

Tennessee: 

Knox ................. Unincorporated 

areas of Knox 

County (10–04– 

1555P).

July 9, 2010; July 16, 2010; 

Knoxville News-Sentinel.

The Honorable Mike Ragsdale, Knox 

County Mayor, 400 Main Street, Suite 

615, Knoxville, TN 37902.

June 30, 2010 ................ 475433 

Shelby .............. Town of Collierville 

(10–04–1188P).

June 24, 2010; July 1, 2010; 

The Collierville Herald.

The Honorable Stan Joyner, Mayor, Town 

of Collierville, 500 Poplar View Parkway, Collierville, TN 38017.

June 17, 2010 ................ 470263 

Utah: Washington .... City of Washington 

(10–08–0519P).

July 9, 2010; July 16, 2010; 

The Spectrum.

The Honorable Kenneth Neilson, Mayor, 

City of Washington, 111 North 100 

East, Washington, UT 84780.

November 15, 2010 ........ 490182 

Wisconsin: Dane ..... City of Madison (10– 

05–3876P).

July 9, 2010; July 16, 2010; 

Wisconsin State Journal.

The Honorable Dave Cieslewicz, Mayor, 

City of Madison, 210 Martin Luther 

King, Jr. Boulevard, City-County Building, Room 403, Madison, WI 53703.

July 30, 2010 .................. 550083 

(Catalog of Federal Domestic Assistance No. 

97.022, ‘‘Flood Insurance.’’) 

Dated: December 3, 2010. 

Sandra K. Knight, 

Deputy Federal Insurance and Mitigation 

Administrator, Mitigation, Department of 

Homeland Security, Federal Emergency 

Management Agency. 

[FR Doc. 2010–32903 Filed 12–29–10; 8:45 am] 

BILLING CODE 9110–12–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

45 CFR Part 158 

[Docket No. HHS–OS–2010–0026] 

RIN 0950–AA06 

Health Insurance Issuers Implementing 

Medical Loss Ratio (MLR) 

Requirements Under the Patient 

Protection and Affordable Care Act; 

Corrections to the Medical Loss Ratio 

Interim Final Rule With Request for 

Comments 

AGENCY: Office of Consumer Information 

and Insurance Oversight (OCIIO), HHS. 

ACTION: Correction of interim final rule 

with request for comments. 

SUMMARY: This document corrects 

technical errors that appeared in the 

interim final rule with request for 

comments that appeared in the 

December 1, 2010 Federal Register (FR 

Doc 2010–29596 (75 FR 74864)) entitled 

‘‘Health Insurance Issuers Implementing 

Medical Loss Ratio (MLR) Requirements 

Under the Patient Protection and 

Affordable Care Act.’’ 

DATES: Effective Date: January 1, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Carol Jimenez, (301) 492–4457. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In the interim final rule with request 

for comments that appeared in the 

December 1, 2010 Federal Register (FR 

Doc 2010–29596 (75 FR 74864)), there 

were technical and typographical errors 

that are identified and corrected in the 

Correction of Errors section below. The 

provisions in this correction notice are 

effective as if they had been included in 

the December 1, 2010 interim final rule 

with request for comments entitled 

‘‘Health Insurance Issuers Implementing 

Medical Loss Ratio (MLR) Requirements 

under the Patient Protection and 

Affordable Care Act.’’ 

Accordingly, the corrections are 

effective January 1, 2011. 

II. Summary of Errors 

In the regulation text and preamble 

sections regarding the scope of the 

regulation, on pages 74921 and 74867, 

respectively, we are correcting a 

typographical error by replacing the 

Public Health Service Act section 

reference from ‘‘2718(b)(A)(ii)’’ to 

‘‘2718(b)(1)(A)(ii)’’. 

In the regulation text section 

regarding exceptions to the general 

aggregate reporting requirements 

(§ 158.120(d)) we are making two 

changes. On page 74922 

(§ 158.120(d)(1)), we are replacing the 

words ‘‘State that has jurisdiction over’’ 

the certificate of coverage, which was 

inadvertently used, with ‘‘issue State of’’ 

the certificate of coverage. The correct 

phrase was inadvertently deleted and 

should be corrected. 

On page 74923 (§ 158.120(d)(4)), we 

are inserting the words ‘‘non-U.S.’’ 

before ‘‘citizens working in their home 

country.’’ The words ‘‘non-U.S.’’ were 

inadvertently omitted and are necessary 

to make clear that this exception does 

not apply to U.S. citizens working in 

their home country. We have corrected 

the preamble section on page 74871 as 

well to reflect this revision to the text. 

On page 74923 (§ 158.140(a)(1)), 

regarding group conversion charges, we 

are adding a sentence that we 

inadvertently omitted. The sentence 

clarifies paragraph(a)(1) with respect to 

an issuer that transfers portions of 

earned premium associated with group 

conversion privileges between group 

and individual lines of business in its 

Annual Statement accounting. 

Also on page 74923, we are deleting 

a phrase from §§ 158.140(a)(2) and (3), 

regarding reimbursement for clinical 

services provided to enrollees. The 

preamble makes clear we intended to 

adopt the NAIC model regulation 

language, which does not include this 

phrase. The phrase had appeared in an 

earlier draft of the NAIC model 

regulation, and was correctly deleted 

from part of the interim final rule, but 

was inadvertently retained in 

subparagraphs (a)(2) and (3). Because 

the preamble makes clear that we 

intended to adopt the NAIC model 

regulation language, and the 

inconsistency between § 158.140(a)(1) 

and §§ 158.140(a)(2)and(3) creates an 

ambiguity that may cause confusion, we 

believe it should be corrected. 

On page 74923, in two subsections 

regarding adjustments to incurred 

claims (§§ 158.140(b)(2) and (4))we are 

also replacing the words ‘‘may’’ and 

‘‘can’’ with the word ‘‘must’’ to indicate 

that such adjustments are mandatory. 

This misuse of ‘‘may’’ and ‘‘can’’ was 

inadvertent and should be corrected. 

We correct an inadvertent omission in 

§ 158.140(b)(5)(i) on page 74924, 

regarding the choice by affiliated issuers 

who offer blended rates to choose 

whether to make an adjustment to each 

affiliate’s incurred claims and activities 

to improve health care quality to reflect 

the experience of the issuer with respect 

to the employer as a whole. We 


srobinson on DSKHWCL6B1PROD with RULES
82278 Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Rules and Regulations 

inadvertently omitted the requirement 

that if an issuer makes this choice, it 

must apply it for a minimum of 3 MLR 

reporting years. This correction is 

necessary in order to implement this 

option accurately. 

We are also correcting an inadvertent 

discrepancy between the NAIC model 

regulation and the interim final rule 

regarding the treatment of fraud 

recovery expenses. We are, first, 

deleting the phrase ‘‘other than fraud 

detection/recovery expenses up to the 

amount recovered that reduces incurred 

claims’’ from § 158.150(c)(8) of the 

interim final rule on page 74925, 

because in the NAIC model regulation 

this language does not apply to 

expenses that improve health care 

quality. We are then amending 

§ 158.140(b)(2) of the interim final rule, 

on page 74923, to add language from the 

NAIC model regulation regarding fraud 

recovery expenses. This changes how 

the fraud recovery amounts in question 

are labeled. The correction has no 

substantive effect on the medical loss 

ratio calculation. We are also amending 

the preamble to reflect this correction, 

by deleting two sentences from page 

74874 and by changing two phrases on 

page 74876, and by deleting a 

parenthetical on page 74875. 

On page 74925, we are also 

redesignating § 158.161 as § 158.162 and 

revising the section heading from 

‘‘Reporting of Federal and State 

licensing and regulatory fees’’ to 

‘‘Reporting of Federal and State taxes.’’ 

On page 74926, we are also revising 

subparagraph (b)(1)(vii)(B) of this newly 

redesignated section, to add language 

that we inadvertently omitted. In 

addition, we are adding a new § 158.161 

to replace text that had been 

unintentionally deleted, but referenced 

in the preamble. 

We are adding the words ‘‘or noncredible’’ after ‘‘partially credible’’ in 

§ 158.231(c)(2) on page 74928, which 

were inadvertently omitted. Adding 

these words is consistent with other 

sections of the regulation and is 

consistent with the preamble section on 

page 74882 regarding this subject. 

Finally, we are correcting several 

typographical errors that appear in 

Table 2 to § 158.232 and in the preamble 

regarding Table 2, on pages 74928 and 

74882 respectively. 

III. Waiver of Proposed Rulemaking 

and Waiver of the Delay in Effective 

Date 

We ordinarily publish a notice of 

proposed rulemaking in the Federal 

Register to provide a period for public 

comment before the provisions of a rule 

take effect in accordance with § 553(b) 

of the Administrative Procedure Act 

(APA) (5 U.S.C. 553(b)). However, we 

can waive this notice and comment 

procedure if the Secretary finds, for 

good cause, that the notice and 

comment process is impracticable, 

unnecessary, or contrary to the public 

interest, and incorporates a statement of 

the finding and the reasons therefore in 

the notice. 

Section 553(d) of the APA (5 U.S.C. 

553(d)) ordinarily requires a 30-day 

delay in effective date of final rules after 

the date of their publication in the 

Federal Register. This 30-day delay in 

effective date can be waived, however, 

if an agency finds for good cause that 

the delay is impracticable, unnecessary, 

or contrary to the public interest, and 

the agency incorporates a statement of 

the findings and its reasons in the rule 

issued. 

This document merely corrects 

typographical and technical errors made 

in the MLR interim final rule with 

request for comments published in the 

Federal Register on December 1, 2010 

(FR Doc. 2010–29596) under the Patient 

Protection and Affordable Care Act, 

which will be effective on January 1, 

2011. The corrections contained in this 

document are consistent with and do 

not make substantive changes to the 

policies adopted in the MLR interim 

final rule with request for comments. 

The preamble to the MLR interim final 

rule with request for comments 

correctly refers to and discusses the 

substance of the sections affected by this 

technical correction and the table of 

contents correctly refers to the section 

headings that are the subject of this 

technical correction. Therefore, we find 

for good cause that it is unnecessary and 

would be contrary to the public interest 

to undertake further notice and 

comment procedures to incorporate 

these corrections. 

For the same reasons, we are also 

waiving the 30-day delay in effective 

date for these corrections. We believe 

that it is in the public interest to ensure 

that the Interim Final Rule setting forth 

Health Insurance Issuers Implementing 

Medical Loss Ratio (MLR) Requirements 

accurately states our policies as of the 

date they take effect. Therefore, we find 

that delaying the effective date of these 

corrections beyond the effective date of 

the MLR interim final rule with request 

for comments would be contrary to the 

public interest. In doing so, we find 

good cause to waive the 30-day delay in 

the effective date. 

IV. Correction of Errors 

In 75 FR 74864, FR Doc 2010–29596, 

published December 1, 2010, make the 

following corrections: 

A. Correction of Errors in the Preamble 

1. On page 74867, second column, 

first full paragraph, line 3, the citation 

2718(b)(A)(ii) is corrected to read 

‘‘2718(b)(1)(A)(ii)’’. 

2. On page 74871, third column, first 

paragraph, line 20, the term ‘‘citizens’’ is 

corrected to read ‘‘non-U.S. citizens’’. 

3. On page 74874, first column, 

second full paragraph, line 22 through 

the second column, line 2, after the 

phrase ‘‘conversion policies.’’, the 

second full paragraph is corrected by 

deleting the two sentences beginning 

with the phrase ‘‘Incurred claims’’ and 

ending with the phrase ‘‘quality 

improving activities’’, without inserting 

any additional language. 

4. On page 74875, third column, last 

partial paragraph, lines 2 and 3, after the 

phrase ‘‘(3) Fraud Prevention activities’’ 

at line 1, the last partial paragraph is 

corrected by deleting ‘‘(beyond the scope 

of those activities which recover 

incurred claims),’’ without inserting any 

additional language. 

5. On page 74876— 

a. In the third column— 

(1) In the first partial paragraph, lines 

9–15 are corrected by deleting the 

phrase ‘‘and fraud recovery activities up 

to the amount of fraudulent claims 

recovered’’, without inserting any 

additional language. 

(2) In the first full paragraph, line 11, 

the phrase ‘‘a quality improving activity’’ 

is corrected to read ‘‘an adjustment to 

claims’’. 

6. On page 74882, Table 2, the term 

‘‘$0’’ in the first line of the ‘‘Deductible’’ 

column on the left side of Table 2 is 

corrected to read ‘‘<$2,500’’. 

B. Correction of Errors to the Regulation 

Text 

■ 1. On page 74921, third column, 

second full paragraph (§ 158.101(b)), 

line 26, the citation 2718(b)(A)(ii) is 

corrected to read ‘‘2718(b)(1)(A)(ii)’’. 

■ 2. On page 74922, third column, first 

full paragraph from the bottom of the 

page (§ 158.120(d)(1)), line 5, the phrase 

‘‘State that has jurisdiction over’’ is 

corrected to read ‘‘issue State of’’. 

■ 3. On page 74923— 

■ a. In the first column, second full 

paragraph (§ 158.120(d)(4)), line 8, the 

term ‘‘citizens’’ is corrected to read ‘‘nonU.S. citizens’’. 

■ b. In the second column— 

■ (1) In the fourth full paragraph from 

the bottom of the page (§ 158.140(a)(1)), 

paragraph (a)(1) is corrected by adding 

the following sentence at the end of it: 

‘‘If an issuer transfers portions of earned 

premium associated with group 

conversion privileges between group 

and individual lines of business in its 


srobinson on DSKHWCL6B1PROD with RULES
Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Rules and Regulations 82279 

Annual Statement accounting, these 

amounts must be added to or subtracted 

from incurred claims.’’ 

■ (2) In the third full paragraph from the 

bottom of the page (§ 158.140(a)(2)), 

lines 2 and 3, paragraph (a)(2) is 

corrected by deleting the phrase 

‘‘changes in unpaid claims between the 

prior year’s and’’. 

■ (3) In the second full paragraph from 

the bottom of the page (§ 158.140(a)(3)), 

lines 1 through 5 are corrected by 

deleting the phrase ‘‘the change in’’ 

following ‘‘Incurred claims must 

include’’ and by deleting the phrase 

‘‘from the prior year to the current year. 

Except where inapplicable, the reserve 

should be’’ following the phrase ‘‘claims 

incurred but not reported’’. 

■ c. In the third column— 

■ (1) In the fifth full paragraph 

(§ 158.140(b)(2)), line 1, the term ‘‘may’’ 

is corrected to read ‘‘must’’. 

■ (2) After § 158.140(b)(2)(iii), line 20, 

paragraph (b)(2) is corrected by adding 

the following paragraph: ‘‘(iv) The 

amount of claims payments recovered 

through fraud reduction efforts not to 

exceed the amount of fraud reduction 

expenses.’’ 

■ (3) In the fourth full paragraph from 

the bottom of the page (§ 158.140(b)(4)), 

line 1, the term ‘‘can’’ is corrected to 

read ‘‘must’’. 

■ 4. On page 74924, first column, first 

partial paragraph (§ 158.140(b)(5)(i)), 

line 14 (immediately following the term 

‘‘aggregate.’’), paragraph (b)(5)(i) is 

corrected by adding the following 

sentence: ‘‘An issuer that chooses to use 

such an adjustment must use it for a 

minimum of three MLR reporting years.’’ 

■ 5. On page 74925— 

■ a. In the first column, third full 

paragraph (§ 158.150(c)(8)), lines 1 

through 4, (after the phrase ‘‘Fraud 

prevention activities’’), paragraph (c)(8) 

is corrected by deleting the phrase ‘‘, 

other than fraud detection/recovery 

expenses up to the amount recovered 

that reduces incurred claims’’. 

■ b. In the third column— 

■ (1) After the eighth full paragraph 

(§ 158.160(b)(2)(vi)), lines 31 and 32, the 

sentence ‘‘§ 158.161 Reporting of Federal 

and State licensing and regulatory fees’’ 

is corrected to read ‘‘§ 158.162 Reporting 

of Federal and State taxes’’. 

■ (2) After the eighth full paragraph 

(§ 158.160(b)(2)(vi)) and before the 

corrected sentence ‘‘§ 158.162 Reporting 

of Federal and State taxes’’, on line 31, 

add the following paragraphs: 

‘‘§ 158.161 Reporting of Federal and 

State licensing and regulatory fees. 

■ (a) Licensing and regulatory fees 

included. The report required in 

§ 158.110 must include statutory 

assessments to defray operating 

expenses of any State or Federal 

department, and examination fees in 

lieu of premium taxes as specified by 

State law. 

■ (b) Licensing and regulatory fees 

excluded. The report required in 

§ 158.110 must include fines and 

penalties of regulatory authorities, and 

fees for examinations by any State or 

Federal departments other than as 

specified in § 158.161(a) as other nonclaims costs, but not as an adjustment 

to premium revenue.’’ 

■ 6. On page 74926, first column, fifth 

paragraph (§ 158.161(b)(1)(vii)(B)), line 

10 is corrected by adding the phrase 

‘‘made due to a’’ before the phrase ‘‘State 

based requirement’’. 

■ 7. On page 74928— 

■ a. In the first column, third full 

paragraph (§ 158.231(c)(2)), line 3, the 

sentence is corrected by adding the 

phrase ‘‘or non-credible’’ after the phrase 

‘‘partially credible’’. 

■ b. In the second column, after the 

third full paragraph (§ 158.232(c)(2)), 

the term ‘‘$2,500’’ in the first line of the 

‘‘Health plan deductible’’ column on the 

left side of Table 2 is corrected to read 

‘‘<$2,500’’. 

Dated: December 17, 2010. 

Dawn L. Smalls, 

Executive Secretary to the Department. 

[FR Doc. 2010–32526 Filed 12–29–10; 8:45 am] 

BILLING CODE 4150–03–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 73 

[DA 10–2280] 

Radio Broadcasting Services; Various 

Locations 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commission amends the 

Table of FM Allotments to unreserved 

FM allotments that are reserved for 

noncommercial educational (NCE) use 

for Channel *272A at Homer, Louisiana, 

and Channel *260A at Fountain Green, 

Utah. 

DATES: Effective December 30, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Rolanda F. Smith, Media Bureau, (202) 

418–2180. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Report 

and Order, adopted December 1, 2010, 

and released December 3, 2010. These 

amendments are necessary to reflect that 

Channel 272A at Homer, Louisiana, and 

Channel 260A at Fountain Green, Utah 

are no longer reserved for NCE use. The 

full text of this Commission decision is 

available for inspection and copying 

during regular business hours at the 

FCC Reference Information Center, 

Portals II, 445 12th Street, SW., Room 

CY–A257, Washington, DC 20554. The 

complete text of this decision may also 

be purchased from the Commission’s 

duplicating contractor, Best Copy and 

Printing, Inc., 445 12th Street, SW., 

Room CY–B402, Washington, DC 20554, 

telephone 1–800–378–3160 or http:// 

www.BCPIWEB.com. The Commission 

will not send a copy of the Report & 

Order in this proceeding pursuant to the 

Congressional Review Act, see 5 U.S.C. 

801(a)(1)(A), because the adopted rules 

are rules of particular applicability. 

List of Subjects in 47 CFR Part 73 

Radio, Radio broadcasting. 

■ As stated in the preamble, the Federal 

Communications Commission amends 

47 CFR part 73 as follows: 

PART 73—RADIO BROADCASTING 

SERVICES 

■ 1. The authority citation for part 73 

continues to read as follows: 

Authority: 47 U.S.C. 154, 303, 334, 336. 

§ 73.202 [Amended] 

■ 2. Section 73.202(b), the Table of FM 

Allotments, is amended as follows: 

■ a. Under Louisiana, the table is 

amended by removing Channel *272A 

and by adding Channel 272A at Homer. 

■ b. Under Utah, the table is amended 

by removing Channel *260A and by 

adding Channel 260A at Fountain 

Green. 

Federal Communications Commission. 

John A. Karousos, 

Assistant Chief, Audio Division, Media 

Bureau. 

[FR Doc. 2010–32466 Filed 12–29–10; 8:45 am] 

BILLING CODE 6712–01–P 


srobinson on DSKHWCL6B1PROD with RULES