Patient Protection and Affordable Care Act -- State insurance mandates -- Cost of additional benefits

(1) (a) The commissioner shall identify a new mandated benefit that is in excess of the essential health benefits required by PPACA. (b) The state shall quantify the cost attributable to each additional mandated benefit specified in Subsection (1)(a) based on a qualified health plan issuer's calculation of the cost associated with the mandated benefit, which shall be: (i) calculated in accordance with generally accepted actuarial principles and methodologies; (ii) conducted by a member of the American Academy of Actuaries; and (iii) reported to the commissioner and to the individual exchange operating in the state. (c) The commissioner may require a proponent of a new mandated benefit under Subsection (1)(a) to provide the commissioner with a cost analysis conducted in accordance with Subsection (1)(b). The commissioner may use the cost information provided under this Subsection (1)(c) to establish estimates of the cost to the state under Subsection (2). (2) If the state is required to defray the cost of additional required benefits under the provisions of 45 C.F.R. 155.170: (a) the state shall make the required payments: (i) in accordance with Subsection (3); and (ii) directly to the qualified health plan issuer in accordance with 45 C.F.R. 155.170; (b) an issuer of a qualified health plan that receives a payment under the provisions of Subsection (1) and 45 C.F.R. 155.170 shall: (i) reduce the premium charged to the individual on whose behalf the issuer will be paid under Subsection (1), in an amount equal to the amount of the payment under Subsection (1); or (ii) notwithstanding Subsection 31A-23a-402.5(5), provide a premium rebate to an individual on whose behalf the issuer received a payment under Subsection (1), in an amount equal to the amount of the payment under Subsection (1); and (c) a premium rebate made under this section is not a prohibited inducement under Section 31A-23a-402.5. (3) A payment required under 45 C.F.R. 155.170(c) shall: (a) unless otherwise required by PPACA, be based on a statewide average of the cost of the additional benefit for all issuers who are entitled to payment under the provisions of 45 C.F.R. 155.170; and (b) be submitted to an issuer through a process established by the commissioner. (4) (a) As used in this Subsection (4), "account" means the State Mandated Insurer Payments Restricted Account created in Subsection (4)(b). (b) There is created in the General Fund a restricted account known as the "State Mandated Insurer Payments Restricted Account." (c) The account shall consist of: (i) money appropriated to the account by the Legislature; and (ii) interest earned on money in the account. (d) Subject to appropriations from the Legislature, the commissioner shall administer the account for the sole benefit of a qualified health plan issuer who is eligible to receive payments under this section. (e) An appropriation from the account is nonlapsing. (5) The commissioner may adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to: (a) administer the provisions of this section and 45 C.F.R. 155.170; and (b) establish or implement a process for submitting a payment to an issuer under Subsection (3)(b).