Enrolled Bill Summary

            House Bill 949 amends the Insurance Code to establish procedures for small employer health insurance carriers to use in developing premium rates for each small employer group, allowing for an adjustment of a group's base premium rate based on that group's risk load. The bill requires the risk load assessed to a particular group to reflect the risk characteristics of the group. The bill allows a carrier to use the number of employees and dependents of a small employer as a case characteristic in establishing premium rates for the group, but it limits the extent of variation between the highest and lowest rate factors for rates that vary based on group size. The bill prohibits a small employer health insurance carrier from using the number of employees and dependents of an employer or the trade, occupation, industry, or type of business of the employer as a criterion for establishing a separate class of business.