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Maine.gov > PFR Home > Insurance Regulation > Hearing Decision Index > Document 178 : INS 99-14 : Hearing Decision
STATE OF MAINE
DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
BUREAU OF INSURANCE
At the request of the Superintendent of Insurance ("Superintendent"), Applicants and the Attorney General filed position papers on the issue of whether or not Anthem Health Plan of Maine, Inc., a Maine domestic health insurer to be formed by Anthem Insurance Companies, Inc. ("Anthem") is required to apply for a certificate of authority in order to operate a health maintenance organization ("HMO") as a line of business. The requirements for obtaining a certificate of authority to operate an HMO generally appear at 24-A M.R.S.A. §§ 4203-4204.
The Superintendent agrees with the Attorney General that Section 4203 requires Applicants to comply with the requirements of Sections 4203-4204 in order to operate an HMO as a line of business. The question of whether or not a certificate of authority separate from that issued under 24-A M.R.S.A. §§ 413-414 is required is almost immaterial provided some evidence exists of the Applicants compliance with all requirements under the HMO law. In other words whether a separate certificate of authority or one certificate of authority identifying all lines of authority is issued is less important than what the Applicants must do in order to be granted authority to operate an HMO line of business.
It is clear that the general statutory provisions relating to the application for, and issuance of, a certificate of authority do not include HMO authority whether direct authority or as a line of business. The standards that must be met in order to engage in HMO activities, as opposed to more general life and health transactions are vastly different. The need to assure the Superintendent of the adequacy of provider networks, appropriate appeal procedures and the like supports the conclusion that the Legislature intended to require Applicants seeking to operate an HMO as a line of business to establish compliance with the standards of the HMO law prior to the issuance of the authority to operate an HMO.
It is equally evident that the Applicants have filed a great deal of information, some of which may assist the Superintendent in determining compliance with 24-A M.R.S.A. §§ 4203-4204. The Superintendent has no intention of requiring the Applicants to file a separate HMO application that may duplicate information that has already been filed. Rather, the Applicants must make a filing that does the following:
The Applicants should be aware that one of the requirements that must be met is the filing of a copy of the application on file along with the supplemental HMO information with the Commissioner of the Department of Human Services ("Commissioner"). It is incumbent upon the Applicants to show that the Commissioner has determined whether a certificate of need is required. If no certificate of need is required, the Applicants must assure the provision of a certification from the Commissioner evidencing compliance with 24-A M.R.S.A. § 4204(2-A)(B).
The Superintendent finds that no benefit will be gained from issuing two separate certificates of authority, should the Applicants comply with all requirements. Rather, as is the case with multiple line insurers, one certificate of authority would be issued granting authority as a life, health and annuity insurer as well as granting authority to operate an HMO line of business pursuant to Chapter 56 (the HMO Act). The practical conclusion that only one piece of paper evidencing multiple lines of authority should be issued in no way reflects upon the obligation of the Applicants to comply with all substantive requirements of 24-A M.R.S.A. §§ 4203-4204.
PER ORDER OF THE SUPERINTENDENT
Last Updated: August 22, 2012
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