Posts by: Britney Han

COVID-19 Special Notice

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Oklahoma Insurance Department

COVID-19 Special Notice

Date:     September 1, 2021

To:         All Health Insurance Companies, Health Maintenance Organizations, Self- Funded Plans and Other Interested Parties

From:    Glen Mulready, Commissioner

Re:         COVID-19

Carriers

As the number of COVID-19 cases resulting in hospitalizations continue to increase across the state, the Department requests that all health insurance carriers providing regulated coverages to Oklahoma consumers expedite and facilitate the timely transfer of enrolled members out of acute care settings upon discharge.  Inpatient transfer requests from hospitals should be priority to create bed capacity across the board.  Discharge planning involves, in some cases, a pre-authorization to a lesser setting of care.  The Department seeks the cooperation of licensed carriers to expedite the pre-authorization process within 24 hours and collaboratively work with providers to open up bed capacity.

Consumers

COVID-19 diagnostic testing requires all insurance companies under the Families First Coronavirus Act (FFCRA) to cover tests without cost-sharing requirements, prior authorizations or other medical management requirements.  FFCRA prohibits plans and issuers from imposing medical management, including medical screening criteria, for the COVID-19 test.

Individuals are encouraged to contact their primary care provider to obtain information on where to receive the test.  This information will ensure that a test is free and is administered by a licensed and authorized health care provider.  This includes point-of-care test locations for COVID-19.  Testing of asymptomatic individuals is included under the FFCRA guidelines when administered for the purpose of individualized diagnosis or treatment.

Questions concerning this Special Notice should be directed to Mike Rhoads, Deputy Commissioner, at Mike.Rhoads@oid.ok.gov

Oklahoma Completes Second Insurance Business Transfer in the United States 

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Oklahoma Insurance Department

For Immediate Release:
August 26, 2021

Oklahoma Completes Second Insurance Business Transfer in the United States 

 

OKLAHOMA CITY – Oklahoma Insurance Commissioner Glen Mulready announced today that the District Court of Oklahoma County approved Sentry Insurance Company (Sentry) to complete its Insurance Business Transfer (IBT) Plan. This is the second IBT completed by an insurance commissioner in the United States. The first was also approved by Commissioner Mulready and authorized by the District Court in October 2020. 

With this approval by the Court, the new IBT would transfer a block of reinsurance business underwritten by Sentry to National Legacy Insurance Company (NLIC), an insurance company domiciled in Oklahoma and a subsidiary of Randall & Quilter Investment Holdings Ltd. The transfer will include the liabilities associated with the reinsurance as well as $2.9 million from Sentry to NLIC as consideration for assuming those liabilities.

“This is an exciting accomplishment for Oklahoma,” Commissioner Mulready said. “Our team is working hard to ensure that Oklahoma IBT law continues to bring tremendous new opportunities to our state.”

“Sentry’s successful transfer of runoff assumed reinsurance to National Legacy Insurance Company was achieved by working with the Oklahoma Department of Insurance and other stakeholders. The IBT process works and this transfer will help Sentry shed its old reinsurance liabilities and focus on its core business,” Michael Williams, Chief Actuary & Risk Officer at Sentry said.

“The process which the Court has sanctioned today has been extremely rigorous, with regulatory oversight, an Independent Expert review and a communication process which enabled stakeholders to engage,” Mike Walker, Head of Transformation at R&Q said. “As US companies look to redeploy capital and seek to exit lines of business, this innovative solution–tried and tested in other jurisdictions-will continue to be attractive.”

Oklahoma’s IBT law became effective in November 2018 and is the most expansive such law in the country. The Oklahoma process closely mirrors Part VII of the Financial Services & Markets Act of 2000 in the United Kingdom, which has resulted in over 300 successful transfers. This cutting-edge mechanism focuses on the protection of consumers while allowing insurance companies to strategically deploy assets to their areas of focus.

If you have questions about other insurance issues, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov. 

 

Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Get Ready for Back-to-School Season

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Oklahoma Insurance Department

For Immediate Release:
August 23, 2021

 

Get Ready for Back-to-School Season

By Oklahoma Insurance Commissioner Glen Mulready  

 

After a long year of remote learning, hybrid models and constantly changing guidelines, many parents and students are looking forward to going back to school. As a parent of three college kids myself, I know how exciting this is for both students and parents. However, leaving home without proper insurance coverage could spell financial disaster and put your student at risk.

Here are some insurance coverage tips that parents and their students should look at before heading off to college:

Home

Suppose your student is moving into a dorm room. In that case, your homeowners policy will likely cover their belongings in case of a loss. Just ask your child to let you know if they buy a new computer or other pricey items. You’ll need to check with your insurance company to insure your coverage will take care of these things.

Students living off-campus should consider renters insurance. This coverage will protect your child’s belongings and ensure you if someone is injured on the property. Premiums for renters insurance range between $15-$30 a month, depending on the location and size of the rental unit and the value of the possessions. No matter where your student lives, a home inventory is a good idea. The list of items will make a future insurance claim quicker and easier to settle.

Auto

Oklahoma requires every car to have auto liability coverage or otherwise meets the financial responsibility requirements of Oklahoma law. Auto liability insurance pays for property damage and bodily injury to someone else if you are found responsible for an accident, up to the policy’s limits. If the title to the car is in your student’s name, they will have to have their own policy. If your college student is driving a car you own, your child can likely stay on your policy.

Suppose your child is heading to college without a car. In that case,  you might be eligible for a “student away at school” car insurance discount. Check with your insurance agent or insurance company and let them know where the car will be stored if the address is different than what’s on the policy.

Health

Students have several options for health insurance coverage while away at college. If
your children are covered under your insurance now, chances are they will still be covered while away at school. Any insurance plan that offers dependent coverage must make that available until the dependent is 26 years old. Before they head off to school, make sure your student has a copy of your insurance cards and knows what doctors, hospitals and pharmacies are covered within your network.

Many colleges and universities also offer their own student health insurance plans. The premiums and features vary widely from school to school. Check with your student’s school health center to see what coverage options are available.

The transition from remote or hybrid learning to new “normal” life on campus in the time of pandemics can be challenging and overwhelming for students. However, having the reassurance that the proper coverage is in place will make the transition go smoothly. I also encourage parents to ask their insurance agent if they are eligible for any discounts. Let the insurance agent know if your student has good grades. Most auto insurance companies will offer a “good student” discount for a B average and higher or other criteria.

For more insurance information, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.

 

Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

LH BULLETIN NO. 2021-03

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Oklahoma Insurance Department

LH BULLETIN NO. 2021-03

To:       All Health Insurance Companies, Health Maintenance Organizations, Self-Funded Plans, and Other Interested Parties

Re:       Applied Behavioral Analysis Benefits and Autism Age Limitations Under Mental Health Parity

From:  Glen Mulready, Commissioner

Date:   August 12, 2021

The Oklahoma Insurance Department (Department) previously issued guidance on the interpretation of 36 O.S. § 6060.11 following amendments passed by the Oklahoma Legislature under SB1718 (effective November 1, 2020) (LH Bulletin No. 2020-04 and LH Bulletin No. 2020-05). The purpose of this bulletin is to provide additional guidance on the subject of Mental Health Parity (MHP) specifically relating to autism Applied Behavioral Analysis (ABA) benefits and age limits for treatment of autism spectrum disorder (ASD).

Pursuant to 36 O.S. § 6060.11, all health benefit plans that cover physical diseases and disorders shall provide equal benefits for mental health and substance use disorders that are subject to the same preauthorization and utilization review mechanisms unless otherwise exempted by statute. 36 O.S. § 6060.11(B)(2) requires that “[t]reatment limitations applicable to mental health or substance use disorder benefits shall be no more restrictive than the predominant treatment applied to substantially all medical and surgical benefits covered by a benefit plan.”

The Department understands that Oklahoma insurance companies may be or are applying treatment and dollar amount limitations for ABA, a treatment therapy for ASD. Recently, the courts and federal agencies have cited violations related to ABA benefit exclusions and other mental health or substance abuse disorder treatment or benefit limitations that were more restrictive than treatments covered by medical and surgical benefits under the federal Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), as amended, and federal guidance and regulations, including 45 C.F.R §§ 146.136, 147.160, and 156.115(a)(3).

The Department advises that if a group health plan or other health insurance coverage includes medical or surgical benefits and mental health or substance use disorder benefits, then under MHPAEA and 36 O.S. § 6060.11, the health plan cannot impose limitations on a quantitative basis (financial, access, or other limitations with numerical measures) or on a non-quantitative basis (medication limitations, medical management, or other non-quantitative measures). Under MHPAEA and 36 O.S. § 6060.11, if any plan includes limitations on mental health or substance use disorder benefits, such as treatments for ASD, those limitations must be comparable to and applied no more stringently than the standards and factors used in applying limitations with respect to medical or surgical benefits under the plan.

Oklahoma statute 36 O.S.§ 6060.21(E) permits coverage for ABA to be subject to a maximum benefit of twenty-five (25) hours per week and no more than twenty-five thousand dollars ($25,000) per year. The Department hereby advises that these limits conflict with 36 O.S. § 6060.11 and the federal statutes and regulations governing MHPAEA, and MHPAEA and 36 O.S. § 6060.11 likely control with regards to the application of ABA benefit limitations as discussed in this bulletin. Additionally, the age restrictions related to the diagnosis and treatment of ASD as set forth in 36 O.S. § 6060.21(A) will be considered discriminatory under MHPAEA.

The Department recommends that all carriers that include ABA benefits in health benefit plans update these plans to be in compliance with the guidance in this bulletin in regards to potentially discriminatory age restrictions and comparable benefit coverage for mental health or substance use disorder treatments and services no later than December 31, 2021.

Questions concerning this bulletin should be directed to Mike Rhoads, Deputy Commissioner, at Mike.Rhoads@oid.ok.gov or Kim Bailey, General Counsel, at Kim.Bailey@oid.ok.gov.

How Rising Construction Costs Could Impact Your Homeowners Insurance

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Oklahoma Insurance Department

For Immediate Release:
July 29, 2021

How Rising Construction Costs Could Impact Your Homeowners Insurance

By Oklahoma Insurance Commissioner Glen Mulready  

 

If you recently started a home improvement project, you probably have noticed the rise in construction costs. According to Verisk’s (ISO) most recent 360Value Quarterly Cost Update, total reconstruction costs increased 8.1% countrywide, on average, between January 2020 and January 2021. Lumber, iron, steel and labor costs all have increased in just a year. These drastic increases are not exclusive to building materials. These rising construction costs may have a significant impact on your homeowners insurance as well.

Homeowners insurance covers the cost to rebuild or repair your home after a loss or claim and construction costs directly correspond with the cost of home insurance. As construction costs increase, it’s important to review your policy with your insurance agent or company to ensure your existing policy limits and coverages offer adequate protection. Here are three things you should consider when you talk to your agent.

 

  • Replacement Cost Coverage or Actual Cash Value Coverage
    Take note of whether you have replacement cost coverage or actual cash value coverage. Replacement cost coverage would pay the cost of replacing something with a brand-new version. If your home is destroyed, replacement cost coverage will pay the cost of materials and labor needed to rebuild the structure. On the other hand, actual cash value coverage (often referenced as replacement cost minus depreciation) will pay the actual reduced value of an item. If your home was destroyed, the actual cash value would take into account the age of your home’s walls, roof, floors, lighting, etc. You would only be paid for their depreciated value, not the cost of actually replacing them.
  • Coverage Adjustments
    Ask questions to your insurer to determine whether you need to adjust your policy to have sufficient coverage in the event of a loss. Based on the spike in construction costs, your replacement cost may be underestimated, which may result in your home being underinsured. Your insurance agent can help reevaluate replacement cost estimates for your home and contents inside to ensure the appropriate coverage levels are in place.
  • Savings and Other Options
    Ask your insurance agent or company about discounts. Many insurers offer multi-policy discounts to help consumers lower their insurance bills. Some insurers may offer discounts on smart home technology you’ve installed in your home. Also, don’t forget you can always shop around. Please take advantage of our fair, competitive insurance market. There are over 900 homeowners insurance companies doing business in Oklahoma.

Lastly, I would caution against insuring for less or keeping your current coverage to avoid paying more on your premiums. The purpose of insurance is to cover you for risks so you do not have a high out-of-pocket cost in the event of a loss. If you need help selecting homeowners insurance, visit https://www.oid.ok.gov/ to compare local rates and find other helpful information.

For more insurance information, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.

 

Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Get Help Paying for Your Medicare Prescription Drug Costs with Extra Help

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Oklahoma Insurance Department

For Immediate Release:
July 20, 2021

Get Help Paying for Your Medicare Prescription Drug Costs with Extra Help

 

OKLAHOMA CITY –  As many Oklahomans are still experiencing financial hardship due to the COVID-19 pandemic, the federal Extra Help Program may be available to you. The Extra Help program assists qualified Medicare beneficiaries with out-of-pocket costs associated with Medicare Part D prescription drug expenses.

More than 17,000 Medicare beneficiaries in Oklahoma may be eligible for this program but have yet to apply. The Medicare Assistance Program (MAP) is a division of the Oklahoma Insurance Department that can help Medicare beneficiaries understand and apply for this assistance. MAP provides free, unbiased information to help Oklahomans understand Medicare, Medicare supplements, Medicare Advantage and other health plan options.

“Having to choose between buying groceries or paying for prescription drugs is a decision no Medicare beneficiary should have to make,” MAP Director Ray Walker said.

The income and asset limits for Extra Help are:

  • $1,469 per month with assets up to $9,470 if you are single
  • $1,980 per month with assets up to $14,960 if you are married

Individuals who qualify for this program will receive assistance with their Medicare Part D prescription drug plans. This means that individuals who are eligible for Full Extra Help will have their Part D monthly premium paid up to $29.11 per month.  They will pay a reduced co-pay of $3.70 for generic drugs and $9.20 for name-brand drugs.

“Even with higher income and resources, you may qualify for partial Extra Help, which will pay all or part of the monthly premium as well as a portion of the co-pays and coinsurance,” Walker added.

To see if you qualify for the Extra Help program, call the Oklahoma Medicare Assistance Program at 1-800-763-2828 or visit https://www.oid.ok.gov/ship-low-income-subsidy/.

If you have questions about other insurance issues, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov. 

 

Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Oklahomans May Be Eligible for Financial Help to Get Health Insurance

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Oklahoma Insurance Department

For Immediate Release:
July 19, 2021

Oklahomans May Be Eligible for Financial Help to Get Health Insurance

 

OKLAHOMA CITY – Starting this month, Oklahoma residents who received or are approved to receive unemployment compensation during 2021 may be eligible for financial help to purchase health insurance. Oklahomans enrolling in the Affordable Care Act (ACA) Marketplace through HealthCare.gov are eligible to receive increased tax credits to reduce their insurance premiums.

“This is an opportunity for Oklahomans in need,” Insurance Commissioner Glen Mulready said. “I encourage any unemployed, uninsured Oklahomans to use these tax credit savings and get the coverage they need before the Special Enrollment Period (SEP) ends.”

If an individual qualifies, coverage can begin as soon as August 1 and the savings will last through the end of the year. The ACA SEP is scheduled to end on August 15, 2021. Whether you keep your plan or change to a different plan, make sure to check with your insurance agent or company on your deductibles and maximum out-of-pocket amounts already met for the current year as well as their transfer policy. Go to HealthCare.gov to get free enrollment assistance and find out if you qualify for additional financial assistance.

In addition, if you are eligible for COBRA because of the reduction of hours or involuntary loss of a job, you may get help in paying your premium from April 1, 2021, through September 30, 2021. If you qualify, your former employer is required to notify you in writing. Contact your former employer, plan administrator or insurance company if think you are eligible.

If you have questions about other insurance issues, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.

 

Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Plan a Safe, Claim-Free Fourth of July

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Oklahoma Insurance Department

For Immediate Release:
June 30, 2021

Plan a Safe, Claim-Free Fourth of July

By Oklahoma Insurance Commissioner Glen Mulready

Family, friends and fireworks—they all make the Fourth of July an exciting holiday for us. Unfortunately, it’s considered the most dangerous day of the year. More than 45,000 people visit U.S. hospital emergency rooms for treatment of injuries during the Independence Day weekend.

If you’re planning a big bang to celebrate Independence Day, make sure your party doesn’t go bust. Independence Day fireworks account for two out of five reported U.S. fires, more than any other cause of fire each year. So, it’s important to know what your insurance will and won’t cover if there’s an accident. Here are the top four insurance claims to avoid and how to stay safe this holiday weekend.

  1. Fireworks Injuries
    According to the Consumer Product Safety Commission (CPSC), thousands of injuries and a handful of fatalities result from amateur fireworks explosions each year. Any injuries caused by fireworks to yourself or your family will likely be covered under your health insurance. In addition, your homeowners insurance would cover any injuries caused to someone else. Usually, the liability will pay that person’s medical bills and legal expenses up to the policy’s limits. Always check with your insurance agent to understand your policy coverage.
  2. Fireworks Damage to Home
    While most people know fireworks can be unsafe, many assume homeowners insurance will cover any damage they cause. There are always exceptions. Fireworks are illegal in most towns and cities in Oklahoma, so you need to check if your policy excludes fireworks-related coverage. Homeowners’ policies typically exclude damages caused by illegal activities and may exclude coverage for fireworks completely. Check with your insurer to see if you are adequately covered for liability and damage to your home resulting from the use of fireworks.
  3. Auto Accidents
    Car accidents account for the second most frequent cause of Fourth of July deaths and injuries. The Insurance Institute for Highway Safety has deemed it as the deadliest day to drive for the year. Moreover, the National Safety Council estimates that as many as 481 people may die on the road this Independence Day weekend, with up to 54,800 more suffering serious injuries.
  4. Boating Accidents
    The Fourth of July is one of the busiest and deadliest times of the summer boating season. Every year, there are around 8,000 boating accidents. Common accidents occur by intoxicated drivers shooting off fireworks from their boats or boat docks. In most cases, homeowners policies only offer minimal boat coverage. Contact your insurance agent or company to ensure your boat insurance policy is up to date.

The best way to prevent fireworks-related damages is to attend a public display. However, if you cannot resist celebrating with your own fireworks, remember these safety tips to avoid potential fire damage and injury. Celebrate Freedom this Fourth of July…Safely! 

For more insurance information, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.

 

For more information, contact:
Liz Heigle
405-522-0683
Liz.Heigle@oid.ok.gov

Oklahoma Made the Top 10 Registration List of the National Welcome to Medicare Virtual Fair

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Oklahoma Insurance Department

For Immediate Release:
June 24, 2021

Oklahoma Made the Top 10 Registration List of the National Welcome to Medicare Virtual Fair

 

OKLAHOMA CITY – The Medicare Assistance Program (MAP) at the Oklahoma Insurance Department (OID) partnered with the Administration for Community Living (ACL) to host the Welcome to Medicare Virtual Fair yesterday. Oklahoma had over 100 people register for the event ranking #10 among 54 participating states and territories. 

“We are grateful for the opportunity to collaborate with other state agencies and participate in this event,” MAP Director Ray Walker said. “Our MAP program provides one-on-one counseling in all 77 counties in Oklahoma. We are here to answer any Medicare questions and assist Oklahomans with information to make choices that best meet their needs.” 

Registrants were able to attend general sessions with expert presenters on Medicare eligibility, enrollment, costs and coverage options. If you missed the event yesterday, you can log into the archive and view recordings as long as you registered by June 20. You can also contact MAP to schedule a meeting if you have questions about Medicare. 

MAP is part of the national Senior Health Insurance Counseling Program (SHIP) network, funded in part by the U.S. ACL, Office of Healthcare Information and Counseling. MAP provides one-on-one counseling and information for people eligible for Medicare. All services are free, unbiased, and confidential. For more information, contact the MAP at 1-800-763-2828 or visit https://www.map.oid.ok.gov.  

 

Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221

Hoodwinked Fraud Prevention Webinar Series Deemed a Success Second Year In a Row

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Oklahoma Insurance Department

For Immediate Release:
June 22, 2021

Hoodwinked Fraud Prevention Webinar Series Deemed a Success Second Year In a Row

 

OKLAHOMA CITY – The Hoodwinked Fraud Conference hosted by the Oklahoma Insurance Department (OID) had a record number of participants this year. The Hoodwinked Fraud Conference offered seven educational sessions from May 6 through June 17. After its final session last week, the 7-week series successfully reached nearly 1,300 registrants across Oklahoma.

The Medicare Assistance Program (MAP) at the OID had been hosting senior fraud conferences around the state for over twenty years. However, due to the COVID-19 pandemic, these outreach programs converted to virtual for the first time last year and saw a huge success. As a result, two new partner agencies were able to join the conference and offered even more fraud-related information.

The OID partnered with four returning agencies: Oklahoma Department of Securities, Oklahoma Attorney General’s Office, Oklahoma Banker’s Association, AARP Oklahoma and two new partners: Oklahoma Social Security Administration and National Insurance Crime Bureau. The video recording of the entire conference is now available at www.oid.ok.gov/hoodwinked/

“We appreciate the collaborative efforts of our partners to make this virtual experience possible. This year, we were able to reach a much larger audience — consumers in rural Oklahoma and other states while still providing a first rate experience” Director of MAP Ray Walker said.

If you have questions about other insurance issues, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov. 

 

Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221