How many months must approved premium rates for group health insurance be guaranteed by the insurer?

Group health insurance policies in North Carolina require that approved premium rates be guaranteed by the insurer for a minimum of 12 months. This regulation ensures a level of stability for policyholders, allowing them to predict costs for at least a year without the risk of immediate rate changes. The 12-month guarantee period provides both insurers and policyholders with an appropriate balance, enabling insurers to manage their risk while offering necessary protection and predictability for the members of the group health plan.

Other durations, such as 6, 18, or 24 months, do not align with the stipulated requirement, which specifically mandates a 12-month guarantee. While insurers can choose to offer longer guarantee periods, the minimum established by regulation is essential for maintaining a stable market for group health insurance. This standard helps ensure that employers and employees can manage their health care budgets effectively without sudden premium escalations within the first year of coverage.