NAC689C.200. Development of rate manual; calculation of rates.

     1. A carrier serving small employers shall develop a rate manual for each class of business established by the carrier. Base premium rates and new business premium rates charged to small employers by the carrier must be computed solely from the applicable rate manual. To the extent that a portion of the premium rates charged by a carrier is based on the carrier’s discretion, the manual must specify the criteria and factors considered by the carrier in exercising its discretion.

     2. The rate manual must specify the risk characteristics and rate factors to be applied by the carrier in establishing premium rates for the class of business.

     3. A carrier shall keep on file for at least 7 years the calculations used to determine the change in base premium rates and new business premium rates for each health benefit plan for each rating period.

     (Added to NAC by Comm’r of Insurance, eff. 3-28-96)