5979679 Resolution 21-461, Sense of the Council Regarding the 2011 Surplus Review of Groups Hospitalization and Medical Services, Inc. Emergency Declaration Resolution of 2016

A RESOLUTION

                                                        

21-461

 

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

 

April 5, 2016        

 

 

To declare the existence of an emergency with respect to the need to declare the sense of the Council regarding the 2011 surplus review of Group Hospitalization and Medical Services, Inc.

 

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the “Sense of the Council Regarding the 2011 Surplus Review of Groups Hospitalization and Medical Services, Inc. Emergency Declaration Resolution of 2016”.

 

            Sec. 2. (a) Emergency legislation is necessary to immediately express the sense of the Council regarding the long-delayed 2011 surplus review of Group Hospitalization and Medical Services, Inc. (“GHMSI”) under the Medical Insurance Empowerment Amendment Act of 2008 (“MIEAA”).

            (b) It has been 7 years since the Council enacted MIEAA to hold GHMSI accountable to its community reinvestment obligation and 3½ years since the District of Columbia Court of Appeals determined that the Department of Insurance, Securities, and Banking (“DISB”) had failed to complete the surplus review as required by MIEAA. It has been more than a year since GHMSI filed a reinvestment plan and DISB has not issued a final order on the merits of that plan. In addition, it is now nearly 2½ years past the deadline for completion of the surplus review set by the District of Columbia Court of Appeals.

            (c) These years of delay in implementing MIEAA have created the opportunity for Maryland, Virginia, and Congress to enact laws that undermine the District’s authority as GHMSI’s primary regulator, which in turn undermines the authority of the Council.

            (d) The DISB Commissioner testified before the Committee on Business, Consumer, and Regulatory Affairs (“Committee”) on October 7, 2015, October 28, 2015, and February 29, 2016, that a decision would be issued soon. At the February 29, 2016, hearing, members of the Committee advised DISB that they expected a prompt decision regarding the review of the 2011 surplus.

(e) To date, DISB has not issued a final order. This delay has allowed other jurisdictions to challenge the District’s authority and has denied the public $56 million in excess surplus that by law was required to be dedicated to community health reinvestment.

            (f) It is urgent that there be no further delay and that DISB promptly develop and order GHMSI to implement a plan for dedicating $56 million in excess 2011 surplus to community health reinvestment under MIEAA.

           

            Sec. 3. The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Sense of the Council Regarding the 2011 Surplus Review of Group Hospitalization and Medical Services., Inc. Emergency Resolution of 2016 be adopted on an emergency basis.

 

Sec. 4. This resolution shall take effect immediately.