                                 CODE OF VIRGINIA

HEARINGS AND INVESTIGATIONS ON EFFECT OF OTHER STATE&#8217;S LAW (§
38.2-4229.2)

A. If another state enacts a law or takes any other regulatory action that
requires a health services plan operating in the Commonwealth to provide a
program or benefits for the residents of the other state or to distribute or
reduce its surplus on grounds that it is excessive in whole or in part, the
Commission shall conduct a proceeding to review and evaluate the impact of the
law or action on the health services plan. The Commission shall direct the
Commissioner to conduct an examination of the health service plan in accordance
with Article 4 (&#xA7; 38.2-1317 et seq.) of Chapter 13 and report its findings
to the Commission, including the impact on (i) surplus; (ii) premium rates for
residents of the Commonwealth covered by policies issued or delivered either in
the Commonwealth or in any other state; and (iii) solvency.

B. Based on the findings of the Commissioner, the Commission shall determine
whether the impact on the health services plan is harmful to the interests of
residents of the Commonwealth covered by policies issued or delivered either in
the Commonwealth or in any other state.

C. If the Commission determines the program or benefits for the residents of
another state or the surplus distribution or reduction has an impact on the
health services plan that is harmful to the interests of residents of the
Commonwealth covered by policies issued or delivered either in the Commonwealth
or in any other state, the Commission shall issue an appropriate order to
protect such residents of the Commonwealth. The order may include:

   1. A prohibition on the health services plan subsidizing the program or
   benefits for the residents of another state through:
   				a. Premiums charged or otherwise allocable to residents of the
   Commonwealth covered by policies issued or delivered either in the
   Commonwealth or in any other state; or
   				b. The use of any earned surplus attributable to residents of the
   Commonwealth covered by policies issued or delivered either in the
   Commonwealth or in any other state;

   2. A prohibition on the health services plan&#8217;s distributing or reducing
   its surplus for the benefit of residents of another state; or

   3. Any other action the Commission finds necessary to protect the interests of
   the residents of the Commonwealth.
   				The determination of premiums charged or otherwise allocable to residents
   of the Commonwealth and the determination of surplus attributable to residents
   of the Commonwealth in each case covered by policies issued or delivered
   either in the Commonwealth or in any other state shall be based upon the
   number of residents in the Commonwealth compared with the number of residents
   in other states covered by the policies of the health services plan.

D. No health services plan shall distribute or reduce its surplus pursuant to a
law or regulatory action the impact of which is subject to a proceeding under
subsection A except with the approval of the Commission after the examination
required by this section.

HISTORY: 2010, c. 704; 2015, cc. 519, 520.