Florida Office of Insurance Regulation

The public hearing was convened to discuss the application for the proposed acquisition of Cigna and its affiliates by Anthem, Inc. Discussions focused on the market implications, potential effects on policyholders, providers, and agents, and the combined entity's strategy for addressing medical costs and quality of care. Key topics included the potential for administrative and pharmacy benefit management efficiencies, the maintenance of existing provider networks, the financial standing of the entities involved, and the regulatory standards governing the merger.

The Public Hearing addressed recommended insurance rates for the year 2017. Key discussion points included an analysis of storm risk based on Probable Maximum Loss (PML) calculations, trends in personal residential multi-peril and wind-only policy counts, and the relationship between risk reduction and assessment reduction. The presentation highlighted that costs vastly exceeded premiums, signaling necessary rate hikes under the glide path. Specific attention was paid to Multi-Peril HO3 and Wind-Only HW2 county average rate changes, noting variations due to non-weather claims and depopulation effects. Furthermore, the discussion covered rising water loss trends, product changes implemented to adjust rate indications, success in depopulation efforts, and stabilization requests for sinkhole rates while addressing the claims backlog. There was also an examination of divergence in hurricane models (RMS vs. AIR) affecting Monroe County rate indications, and an overview of administrative expenses and infrastructure streamlining efforts.

This document presents a financial analysis conducted by NCCI for the 2014 Florida Workers' Compensation Rate Hearing. It details the methodology, which includes unchanged models (DCF, CAPM, IRR) but updated inputs such as dividend growth, current dividend yield, beta, and cost of capital, with premium patterns now based on Florida experience. The analysis also considers improved financial market conditions and quantifies the impact of changes in premium inputs on the unitary combined ratio (UCP).

The agenda for the meeting included the Call to Order, Roll Call, the Antitrust Statement review, the Chair's Opening Remarks, the Manager's Administrative Report which involved a Review of the Plan of Operations, finalizing Legislative Proposals for 2018, Other Business, and Public Comment before adjournment.

The meeting included the Executive Director's Report, which provided an overview of the Florida Health Insurance Advisory Board's original purpose as the Small Employer Health Reinsurance Program and noted that assessments are currently only used for operational costs. Financial statements as of October 31, 2025, showed sufficient funds to sustain operations until the 2026 assessments. The Board ratified an agreement for the 2024 financial statements audit, noting slight increases in audit costs for the small group and individual plan audits compared to 2023. In other business, it was announced that legislative proposals due on December 5 would be compiled, and only proposals reaching full consensus would be submitted to the 2026 Florida Legislature.