(a) Adoption of reinsurance terms.--The department shall, after consultation with all insurers then currently participating in the exchange, and not less than 60 days before final rates for health insurance policies are required to be submitted each year, determine and adopt the attachment point, reinsurance cap and coinsurance rate applicable to the reinsurance program for the following year.
(b) Parameters.--In determining the attachment point, reinsurance cap and coinsurance rate applicable to the reinsurance program for the following year, the department shall seek to:
(1) Manage the program within the amount of total program funding available to the department.
(2) With respect to the individual market:
(i) Mitigate the impact of high-cost claims on premium rates.
(ii) Stabilize or reduce premium rates.
(iii) Increase participation.
(c) Publication and notice.--The department shall transmit notice of the adopted attachment point, reinsurance cap and coinsurance rate to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin and shall:
(1) Post notice on the department's publicly accessible Internet website.
(2) Electronically send notice to the chair and minority chair of the Banking and Insurance Committee of the Senate and the chair and minority chair of the Insurance Committee of the House of Representatives.
(3) Electronically send notice to each participating insurer via a contact person or electronic mailing address, as identified by the insurer.
(d) Limitation.--After the department adopts the attachment point, reinsurance cap and coinsurance rate for the next year, the department may not, before or during that benefit year, change the attachment point, reinsurance cap or coinsurance rate in a manner less favorable to the insurers participating in the exchange at the time of adoption.
Cross References. Section 9504 is referred to in sections 9506, 9512 of this title.