Feds toughen CO-OP plan reporting rules

Johnson said the increase in reporting frequency would be expensive for CO-OPs that use outside actuaries, and that the proposed end-of-the-month reporting dates would conflict with National Association of Insurance Commissioners (NAIC) filing dates.

Johnson asked CMS to consider reducing the number of extra reports that CO-OPs need to file, and at least adjusting the deadlines to reduce overload.

Kerscher suggested that life would be easier for CO-OPs if CMS would at least let CO-OPs format the reports in a vertical format that would fit on one ordinary typewriter page, rather than in a horizontal format.

CMS did agree to adjust the filing deadlines to reduce CO-OP overload. The due dates for the quarterly submission of pro forma financial statements will now be 30 days following the NAIC filing due dates.

But CMS declined to reduce the filing frequency.

“CMS has often observed a high level of variability in CO-OP performance relative to projections from quarter to quarter,” CMS officials write in their response. “Given this variability, a more frequent collection of the pro forma financial statement is necessary for CMS to actively monitor each CO-OP’s financial viability and sustainability.”

See also: More states license CO-OPs

CMS also rejected the request for letting CO-OPs shift to a vertical reporting format. CMS’ officials said they want to keep the new data reporting format consistent with the old format.