Rate Review Process 101

Colorado law requires carriers to file any health premium rate changes with the Division of Insurance. These rate filings are reviewed by analysts and actuaries at the Division to determine whether they are in compliance with state insurance regulations. The minimum standard for the approval of a premium rate change is that the new rates must not be excessive, inadequate or unfairly discriminatory.

The most common reasons for a carrier to submit rate filings include but are not limited to;

• Increase in benefits

• Reduction in benefits

• Change needed to meet projected losses

• Trend only

• Change in rating methodology

• New product (initial offering as opposed to rate revision)

• New options/methodology

Frequently Asked Questions for Health Carriers on "Prior Approval" HB 08-1389