| (1)__The rate increase for any group or subgroup does | not exceed the index of inflation multiplied by 1.5, | excluding any approved rate differential based on age.__ | For the purposes of this subsection, "index of | inflation" means the rate of increase in medical costs | for a section of the United States selected by the | superintendent that includes this State for the most | recent 12-month period immediately preceding the date | of the filing for which data are available; and |
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| (2)__The carrier demonstrates in accordance with | generally accepted actuarial principles and practices | consistently applied that, as of a date no more than | 210 days prior to the filing, the ratio of benefits | incurred to premiums earned averages no less than 87.5% | for the previous 12-month period. |
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| F.__Any rate hearing conducted with respect to filings that | meet the criteria in paragraph E is subject to this | paragraph. |
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| (1)__Any person requesting a hearing shall provide the | superintendent with a written statement detailing the | circumstances that justify a hearing, notwithstanding | the satisfaction of the criteria in paragraph E. |
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| (2)__If the superintendent decides to hold a hearing, | the superintendent shall issue a written statement | detailing the circumstances that justify a hearing, | notwithstanding the satisfaction of the criteria in | paragraph E. |
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| (3)__In any hearing conducted under this subsection, | the bureau and any party asserting that the rates are | excessive have the burden of establishing that the | rates are excessive.__The burden of proving that rates | are adequate and not unfairly discriminatory remains | with the carrier. |
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| | 2-C.__Optional guaranteed loss ratio.__At the carrier's | option, rate filings for a credible block of small group health | plans may be filed in accordance with this subsection instead of | subsection 2-B.__Rates filed in accordance with this subsection | are filed for informational purposes. |
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| A.__A block of small group health plans is deemed credible | if the anticipated number of member months for which the | rates will be in effect is at least 1,000 or if it meets | credibility standards adopted by the superintendent by rule.__ | The rate filing must state the anticipated number of |
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