NRS689C.840. Net loss from reinsuring small employers and eligible employees and dependents required to be recouped by assessments against reinsuring carriers. [Effective through December 31, 2013.]

      1.  Any net loss from reinsuring small employers and eligible employees and their dependents must be recouped by assessments against reinsuring carriers.

      2.  As part of the plan of operation, the Board shall establish a formula pursuant to which assessments may be made against reinsuring carriers to recover the net loss. The formula must be based on:

      (a) The share of each reinsuring carrier of the total premiums earned by all reinsuring carriers during the preceding calendar year from existing health benefit plans delivered or issued for delivery to small employers in this state; and

      (b) The share of each reinsuring carrier of the premiums earned by all reinsuring carriers in the preceding calendar year from newly issued health benefit plans delivered or issued for delivery during that year to small employers in this state.

      3.  An assessment made against a reinsuring carrier pursuant to this section must not be less than 50 percent nor more than 150 percent of an amount equal to the proportion of the total premium earned by the reinsuring carrier during the preceding calendar year from health benefit plans delivered or issued for delivery to small employers in this state to the total premiums earned by all such carriers in the preceding calendar year for such health benefit plans.

      4.  The Board may, with the approval of the Commissioner, change the formula for determining assessments against reinsuring carriers established pursuant to this section as necessary. The Board may provide that, during any transitional period, the shares of the assessment base attributable to the total premiums and to the premiums of the previous year may vary.

      5.  Subject to the approval of the Commissioner, the Board shall adjust the formula for assessing reinsuring carriers that are approved health maintenance organizations which are federally qualified under 42 U.S.C. §§ 300 et seq., to the extent that any restrictions are placed on such reinsuring carriers that are not imposed on other small employer carriers.

      6.  In determining the amount of net loss pursuant to this section, the Board shall include any expenses incurred by the Program of Reinsurance in providing such reinsurance.

      (Added to NRS by 1997, 2935; R 2013, 3661, effective January 1, 2014)