Regulatory Alerts2008-01-01 | Bulletin 2008-5Bulletin 2008-5: Prohibition Against Use of Health Status for Underwriting Associations with Small Employer Groups and Allowable Rating Practices
The Oregon Insurance Division issued Bulletin 2008-5 to enforce statutory prohibitions against using health status or claims experience to underwrite small employer groups within associations. The bulletin mandates that carriers cannot use health statements or claims data to determine eligibility or pricing for individual members or subgroups, except for specific late enrollee determinations. It outlines three permissible rating methodologies for associations, allowing carriers to treat the association as a single large group, rate subsets under specific retention requirements, or apply standard small employer group rating rules with limited claims experience factors.
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