Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Common to Life, Accident, Health and HMOHard
A health maintenance organization (HMO) must file its rates and any modifications to its rates with the Commissioner of Insurance for approval. How many days prior to their effective date must these filings be submitted?
- A120 days
- B90 days
- C60 days
- D30 days
Show answer & explanationAnswer & explanation
Correct answer: C. 60 days
HMOs in Texas are required to file their rates and any modifications with the Commissioner of Insurance at least 60 days prior to their effective date for review and approval.
Why the other options are wrong
- A. 120 days is not the specified timeframe for this type of filing.
- B. 90 days is longer than the required period for HMO rate filings.
- D. 30 days is too short for rate filings, which require detailed review.
HMO Rate Filing Requirement
The obligation for Health Maintenance Organizations to submit their proposed rates and any changes to these rates to the state's insurance department for review and approval before implementation.
- Ensures rates are fair and adequate
- Protects consumers from excessive charges
- Specific advance notice period required
Memory trick: HMO rates need 'sixty' days to be set straight.