§ 154.215 Submission of rate filing justification. ( a ) A health insurance issuer must submit to CMS and to the applicable State (if the State accepts such submissions) the information specified below on a form and in a manner prescribed by the Secretary. ( 1 ) For all single risk pool products, including new and discontinuing products, the Unified Rate Review Template, as described in paragraph (d) of this section;
( 2 ) For each single risk pool product that includes a plan that is subject to a rate increase, regardless of the size of the increase, the unified rate review template and actuarial memorandum, as described in paragraph (f) of this section;
( 3 ) For each single risk pool product that includes a plan with a rate increase that is subject to review under § 154.210, all parts of the Rate Filing Justification, as described in paragraph (b) of this section
( b ) A Rate Filing Justification includes one or more of the following: ( 1 ) Unified rate review template (Part I), as described in paragraph (d) of this section.
( 2 ) Written description justifying the rate increase (Part II), as described in paragraph (e) of this section.
( 3 ) Rating filing documentation (Part III), as described in paragraph (f) of this section.
( c ) [Reserved]
( d ) Content of unified rate review template (Part I): The unified rate review template must include the following as determined appropriate by the Secretary: ( 1 ) Historical and projected claims experience.
( 2 ) Trend projections related to utilization, and service or unit cost.
( 3 ) Any claims assumptions related to benefit changes.
( 4 ) Allocation of the overall rate increase to claims and non-claims costs.
( 5 ) Per enrollee per month allocation of current and projected premium.
( 6 ) Three year history of rate increases for the product associated with the rate increase.
( e ) Content of written description justifying the rate increase (Part II): The written description of the rate increase must include a simple and brief narrative describing the data and assumptions that were used to develop the rate increase and including the following: ( 1 ) Explanation of the most significant factors causing the rate increase, including a brief description of the relevant claims and non-claims expense increases reported in the rate increase summary.
( 2 ) Brief description of the overall experience of the policy, including historical and projected expenses, and loss ratios.
( f ) Content of rate filing documentation (Part III): The rate filing documentation must include an actuarial memorandum that contains the reasoning and assumptions supporting the data contained in Part I of the Rate Filing Justification. Parts I and III must be sufficient to conduct an examination satisfying the requirements of § 154.301(a)(3) and (4) and determine whether the rate increase is an unreasonable increase. Instructions concerning the requirements for the rate filing documentation will be provided in guidance issued by CMS.
( g ) If the level of detail provided by the issuer for the information under paragraphs (d) and (f) of this section does not provide sufficient basis for CMS to determine whether the rate increase is an unreasonable rate increase when CMS reviews a rate increase subject to review under § 154.210(a), CMS will request the additional information necessary to make its determination. The health insurance issuer must provide the requested information to CMS within 10 business days following its receipt of the request.
( h ) Posting of the disclosure on the CMS Web site: ( 1 ) CMS promptly will make available to the public on its Web site the information contained in Part II of each Rate Filing Justification.
( 2 ) CMS will make available to the public on its website the information contained in Parts I and III of each Rate Filing Justification that is not a trade secret or confidential commercial or financial information as defined in HHS's Freedom of Information Act regulations, 45 CFR 5.31(d).
( 3 ) CMS will include a disclaimer on its Web site with the information made available to the public that explains the purpose and role of the Rate Filing Justification.
( 4 ) CMS will include information on its Web site concerning how the public can submit comments on the proposed rate increases that CMS reviews.
[78 FR 13440, Feb. 27, 2013, as amended at 80 FR 10864, Feb. 27, 2015; 81 FR 12335, Mar. 8, 2016; 83 FR 17060, Apr. 17, 2018]