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PA Bulletin, Doc. No. 00-403

NOTICES

First Priority Health Rate Filing; #H-437-BASE-FPH2-1/1/2000; Rate Increase for Community HMO Products

[30 Pa.B. 1334]

   Due to higher medical care costs and utilization trends, First Priority Health submitted a rate filing on February 22, 2000 requesting the Insurance Department's (Department) approval to increase the monthly base rate for its Standard HMO Plan, including the prescription drug rider, by 11.44%. This filing is for an effective date of second quarter 2000.

   When combined with the 20.63% increase previously approved by the Department for January 1, 2000, customers selecting the prescription drug rider will see a 34.43% rate increase from the 1999 approved rate. For customers not selecting the prescription drug rider, the rate increase from the previously approved rate in 1999 is 27.45%. To obtain consistency between the medical care cost trends and the quarterly rate trends, FPH is also requesting increases in the quarterly rate trends. These proposed rate actions would affect the second quarter 2000 through December 2000 group renewals. The rate increase requested for the Non-Group Conversion pool is 8.68% effective second quarter 2000.

   The projected average number of HMO contracts per month which renew from April 1, 2000--December 31, 2000 period is approximately 30,000.

   This filing is available for public inspection during normal working hours on the 13th floor, Strawberry Square, Harrisburg, PA 17120.

   Interested parties are invited to submit written comments, suggestions or objections to Cherri Sanders-Jones, Life and Health Actuary, Insurance Department at the aforementioned address within 30 days after the publication of this notice in the Pennsylvania Bulletin.

M. DIANE KOKEN,   
Insurance Commissioner

[Pa.B. Doc. No. 00-403. Filed for public inspection March 3, 2000, 9:00 a.m.]


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