38.2-4229.2 - Hearings and investigations on effect of other state's law.
§ 38.2-4229.2. Hearings and investigations on effect of other state's law.
A. If another state enacts a law that requires a health services planoperating in the Commonwealth to provide a program or benefits for theresidents of the other state, the Commission may conduct a proceeding toreview and evaluate the impact of the law on the health services plan. TheCommission shall direct the Commissioner to conduct an examination of thehealth service plan in accordance with Article 4 (§ 38.2-1317 et seq.) ofChapter 13 and report its findings to the Commission, including the impact on(i) surplus; (ii) premium rates for residents of the Commonwealth covered bypolicies issued or delivered either in the Commonwealth or in any otherstate; and (iii) solvency.
B. Based on the findings of the Commissioner, the Commission shall determinewhether the impact on the health services plan is harmful to the interests ofresidents of the Commonwealth covered by policies issued or delivered eitherin the Commonwealth or in any other state.
C. If the Commission determines the program or benefits for the residents ofanother state have an impact on the health services plan that is harmful tothe interests of residents of the Commonwealth covered by policies issued ordelivered either in the Commonwealth or in any other state, the Commissionshall issue an appropriate order to protect such residents of theCommonwealth. The order may include a prohibition on the health services plansubsidizing the program or benefits for the residents of another statethrough:
1. Premiums charged or otherwise allocable to residents of the Commonwealthcovered by policies issued or delivered either in the Commonwealth or in anyother state; or
2. The use of any earned surplus attributable to residents of theCommonwealth covered by policies issued or delivered either in theCommonwealth or in any other state.
The determination of premiums charged or otherwise allocable to residents ofthe Commonwealth and the determination of surplus attributable to residentsof the Commonwealth in each case covered by policies issued or deliveredeither in the Commonwealth or in any other state shall be based upon thenumber of residents in the Commonwealth compared with the number of residentsin other states covered by the policies of the health services plan.
(2010, c. 704.)