Opinion ID: 883077
Heading Depth: 1
Heading Rank: 5

Heading: Premium Payment Schedule

Text: Until early 1991, State Fund's practice was to require employers to submit payroll information at the end of each quarter and then to pay the premium due for that quarter thirty days later. In mid-1991 State Fund combined payroll reporting and premium payment on a single form, which in effect accelerated the premium payment by thirty days. This change in procedure was initiated by staff and apparently accepted by the Board at its meeting of May 24, 1991. No notice of this change was sent to MHCA or to policy holders. Appellants argue that MAPA applies because State Fund's decision to change the premium date affects parties' rights and obligations, and that State Fund's decision therefore should be subject to public notice and comment. The District Court held that the obligation to pay a premium arises when the coverage is provided, and that the timing of billing for that coverage is not a matter that requires a rule. We affirm. State Fund's billing schedule does not alter the obligation incurred by employers who enroll with State Fund.