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HD 3769

An Act relative to dental insurance

194th Legislature (2025-2026) Introduced by Paul McMurtry

Sets separate risk-based capital rules for dental/health insurers, tailoring models by carrier type and market size and allowing limited reporting waivers.

Senate concurred
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Bill Summary · HD 3769

Summary: An Act Relative to Dental Insurance (HD 3769)

Overview

HD 3769, introduced February 27, 2025 by Representative Paul McMurtry, is a proposed Massachusetts bill titled An Act relative to dental insurance. The bill reworks certain regulatory standards for insurers (including life and multi-line carriers) with regard to risk-based capital (RBC) modeling and reporting, and it makes targeted adjustments to how dental and related health insurance entities are regulated under Chapter 176X. The Senate has concurred with the House version. The bill was referred to the Joint Committee on Financial Services on February 27, 2025.

Main purpose

To modify regulatory framework governing insurers’ capital adequacy and reporting requirements in the context of dental and related health insurance lines. The changes aim to clarify how RBC requirements apply to different market group sizes, ensure certain RBC standards are used by life and multi-line carriers, and provide limited waivers for reporting if information cannot be provided.

Key provisions (by section)

  • Section 1: Removes a specific threshold related to a carrier’s reported surplus contribution (strikes the language: “or if a carrier’s reported contribution to surplus exceeds 1.9 percent”) from Section 2(d) of Chapter 176X. This broadens or simplifies surplus-related provisions.

  • Section 2: Amends Section 3(a)(i) to redefine market group sizes for reporting purposes as:

    • Individual
    • Small groups of 2–50
    • Large groups greater than 50 This clarifies how carriers are categorized by market size.

  • Section 3: Repeals Section 3(c) (i.e., removes that subsection from current law).

  • Section 4: Adds new language to Section 3(e) specifying RBC applicability:

    • After 60 days, life insurers will apply the RBC model according to 211 CMR 20.00.
    • Carriers with the majority of liabilities in non-dental or non-Massachusetts lines shall not exceed 700% of their CAL (Company Action Level) as defined in 211 CMR 20.00.
    • Massachusetts-based health and dental-only carriers shall apply the RBC model according to 211 CMR 25. This section sets distinct RBC standards for different carrier types and liabilities.

  • Section 5: Replaces Section 3(f) with a provision allowing the commissioner to waive specific reporting requirements for carriers unable to provide the required information, but requires written notice of any waiver to the joint committee on health care financing and the House and Senate Ways and Means committees.

Who is affected

  • Life insurers and other multi-line carriers operating in Massachusetts, particularly those with substantial non-dental or non-Massachusetts business.
  • Massachusetts-based health and dental-only carriers.
  • Insurance regulators (Massachusetts Division of Insurance) implementing RBC models and reporting standards.

Procedural/timeline notes

  • Filed: January 17, 2025 (House Docket No. 3769, House No. 1262)
  • Referral: Committee on Financial Services (February 27, 2025)
  • Status: Senate concurred (as of February 27, 2025)

Potential impact

  • Clarifies market-size categorization and aligns RBC modeling with specified 211 CMR chapters.
  • Introduces a cap (700% CAL) for certain carriers, potentially affecting capital requirements for those with liabilities outside dental/Massachusetts lines.
  • Provides regulatory flexibility through waivers of certain reporting requirements.
  • Aims to modernize regulatory practices for dental and related health insurance market segments while maintaining oversight.

Note: This summary reflects the bill language as introduced and amended in the 2025–2026 session. Always consult the latest legislative text for current status and exact wording.

Compiled from official sources — confirm details with the bill’s official record.

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