Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Rulemaking Scope topic
No spam. Unsubscribe anytime.
DFR removes executive compensation from this year’s rate-review rulemaking; will seek other ways to publish the data
Summary
At the Sept. 24 advisory meeting, the Division of Financial Regulation said it would pull executive compensation disclosure from the current consumer-friendly rate-review rulemaking and explore non-rulemaking ways to make that information accessible to consumers.
Ethan Baldwin, a policy analyst at the Division of Financial Regulation (DFR), told the rate-review advisory committee on Sept. 24 that the division had decided to remove executive compensation disclosure from this year’s consumer-friendly rate-review rulemaking. "Based on the feedback we've received, we've gone ahead and decided to pull the executive compensation from this rule making for this year," Baldwin said.
The decision followed input received at previous committee meetings and written comments submitted outside the meetings. Jesse O'Brien, manager of the DFR policy team, clarified that the division already receives executive-compensation data through insurers' financial filings and wants to explore ways to present that information in a consumer-accessible format outside the formal rulemaking process. "We do actually already receive the kind of information on executive compensation in financial filings," O'Brien said, adding that DFR will discuss options with carriers and other stakeholders in the coming months.
A committee participant who identified herself as Antoinette from Cambia Health asked whether carriers would be involved if DFR chose a non-rulemaking route. Baldwin and O'Brien said they expect to consult carriers and other interested parties about how best to make the data available, but they do not anticipate opening a separate rulemaking on the topic this year.
The division characterized the change as a scope decision for this rulemaking rather than a refusal to make the information public. Baldwin said the division recognizes that executive-compensation data are important to consumers and plans to pursue other routes for disclosure. The committee did not take a formal vote; the division recorded a staff decision to remove the item from this year's rule text and to pursue alternate dissemination.
Next steps: DFR kept the public comment period open and asked advisory committee members to submit written comments on the rule text by close of business Friday, Oct. 3. Baldwin said the division hopes this will be the final advisory meeting before filing the rule.
