Colorado § 10-16-130 - Disclosure of rate increases to public entities - legislative declaration - definitions.

§ 10-16-130. Disclosure of rate increases to public entities - legislative declaration - definitions.

(1) The general assembly hereby finds, determines, and declares that variability in premiums by carriers offering health benefit coverage to a public entity present difficulties for fiscal planning for the public entity. Therefore, it is in the best interest of the state to promote greater accountability to the public and sound fiscal policy by public entities through disclosure by health insurance carriers of information concerning the public entity's rate, loss ratio, and the total number of claims exceeding ten thousand dollars for the public entity.

(2) A carrier authorized to conduct business in this state that offers coverage pursuant to part 2, 3, or 4 of this article to a public entity, with one hundred or more employees enrolled in such coverage, shall disclose to the public entity, at the request of the public entity, once annually and concurrent with the issuance of the employer's rate renewal, the following information as it relates to the amounts of coverage being considered for calculating the renewal:

(a) The total number of employees covered by the carrier for the public entity;

(b) The total dollar amount of claims paid by the carrier on behalf of the public entity;

(c) Total of premiums paid; and

(d) The number of claims that exceed ten thousand dollars for any one covered person under health benefit coverage for the public entity.

(3) As used in this section, unless the context otherwise requires:

(a) "Loss ratio" means the total claims paid for the coverage period divided by the total amount of premiums paid by a public entity.

(b) "Public entity" shall have the same meaning as that provided in section 24-10-103 (5), C.R.S.

Source: L. 2005: Entire section added, p. 849, § 1, effective January 1, 2006.