How often must health insurance companies submit their rates for approval in North Carolina?

In North Carolina, health insurance companies are required to submit their rates for approval on an annual basis. This process ensures that the rates charged to policyholders are justified and compliant with state regulations. The annual submission allows the North Carolina Department of Insurance to review the proposed rates, assess whether they are adequate, not discriminatory, and in line with the costs of providing the health care services covered by the policies. This requirement helps maintain consumer protection and promotes transparency in the health insurance market, ensuring that companies do not impose unreasonable or unjustified rate increases.

By establishing an annual review cycle, the state allows insurers to adjust their rates based on trend data and claims experience while providing oversight to protect consumers from potential rate exploitation. The other frequency options, such as quarterly, biannually, or monthly, do not align with the regulatory framework established for health insurance rate approval in North Carolina.