SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
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OMB No. 1545-0047
2020
Open to Public
Inspection
Name of the organization
NEW HAMPSHIRE INDIVIDUAL HEALTH
PLAN BENEFIT ASSOCIATION
Employer identification number

02-0499340
Return Reference Explanation
FORM 990 - ORGANIZATION'S MISSION THE ASSOCIATION WAS CREATED PURSUANT TO THE ORDER OF THE NEW HAMPSHIRE INSURANCE COMMISSIONER WITH THE PURPOSE OF SUPPORTING THE STATE'S INDIVIDUAL HEALTH PLAN PROGRAMS. THE PURPOSE OF THE ASSOCIATION IS TO PROTECT THE RESIDENTS OF NEW HAMPSHIRE WHO PARTICIPATE IN THE INDIVIDUAL HEALTH INSURANCE MARKET BY PROVIDING A MECHANISM TO EQUITABLY DISTRIBUTE THE EXCESS RISK ASSOCIATED WITH THIS MARKET. THE ASSOCIATION'S MEMBERSHIP CONSISTS, BY STATUTE, OF ALL INSURERS LICENSED TO TRANSACT HEALTH INSURANCE IN THE STATE OF NEW HAMPSHIRE THAT OFFER POLICIES FOR MAJOR MEDICAL COVERAGE ON AN EXPENSE-INCURRED BASIS AND ALL LICENSED HOSPITALS, MEDICAL SERVICE CORPORATIONS, OR OTHER ORGANIZERS, IF ANY, IN THE STATE THAT OFFER SUBSCRIBER CONTRACTS FOR MAJOR MEDICAL COVERAGE.
FORM 990 IN ITS 2019 SESSION, THE NEW HAMPSHIRE LEGISLATURE AMENDED SECTION 12 OF THE NEW HAMPSHIRE REVISED STATUTES ANNOTATED TO PERMIT THE INSURANCE COMMISSIONER, IF SUPPORTED BY THE RECOMMENDATION OF ACTUARIAL EXPERTS, TO REQUEST THAT THE ASSOCIATION PROPOSE A PLAN OF OPERATION FOR A RISK SHARING PROGRAM, REINSURANCE PROGRAM OR OTHER PROGRAM THAT WILL BEST SUPPORT THE AVAILABILITY AND AFFORDABILITY OF THE INDIVIDUAL INSURANCE MARKET IN THE STATE. PURSUANT TO THE 2019 STATUTORY AMENDMENTS AND BASED ON THE REPORT OF HIS ACTUARIAL EXPERTS, THE INSURANCE COMMISSIONER ISSUED AN ORDER ON FEBRUARY 25, 2020 REQUIRING THE ASSOCIATION TO ASSESS AND DEVELOP A PROPOSAL FOR A REINSURANCE PROGRAM WITH SUPPORT OF FEDERAL FUNDING IN THE FORM OF SHARED SAVINGS UNDER A STATE INNOVATION WAIVER UNDER SECTION 1332 OF THE AFFORDABLE CARE ACT. IN RESPONSE TO THE INSURANCE COMMISSIONER'S ORDER, THE ASSOCIATION ENGAGED ITS MANAGEMENT TEAM, IN CONSULTATION WITH EXPERTS AND LEGAL COUNSEL AND THE INSURANCE COMMISSIONER, TO REVIEW THE ACTUARIAL ANALYSIS AND DETERMINE THE COMPONENTS OF A PROPOSED STATE MARKET STABILIZATION PROGRAM AND ITS ANTICIPATED COSTS AND OPERATIONAL PROCEDURES AND TO DEVELOP A RELATED SECTION 1332 WAIVER APPLICATION. TO DOCUMENT ITS PROPOSED PROGRAM PURSUANT TO SECTION 12 OF THE STATUTE, THE ASSOCIATION ADOPTED A SECOND AMENDMENT TO ITS RESTATED PLAN ON MARCH 11, 2020. DURING 2020, ALL OF THE CONDITIONS TO THE IMPLEMENTATION OF THE PROPOSED PROGRAM -- KNOWN AS THE "NEW HAMPSHIRE REINSURANCE PROGRAM" (THE "REINSURANCE PROGRAM") -- WERE MET, INCLUDING APPROVAL BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AND THE U.S. DEPARTMENT OF THE TREASURY OF THE STATE'S SECTION 1332 WAIVER APPLICATION AND ITS PROJECTED "PASS-THROUGH SAVINGS." ON SEPTEMBER 30, 2020 THE INSURANCE COMMISSIONER ISSUED A SUPPLEMENTAL ORDER DIRECTING THAT THE ASSOCIATION, AS ADMINISTRATOR OF THE REINSURANCE PROGRAM, RECEIVE THE FEDERAL GRANT MONIES UNDER THE SECTION 1332 WAIVER. THE ASSOCIATION ADOPTED A THIRD AMENDMENT TO ITS RESTATED PLAN ON OCTOBER 20, 2020 WHICH ALLOWS AND DIRECTS THE ASSOCIATION TO BECOME THE GRANTEE OF RECORD UNDER THE SECTION 1332 WAIVER, AND TO ACCEPT AND RECEIVE DIRECTLY FEDERAL FUNDING UNDER THE SECTION 1332 WAIVER. THE REINSURANCE PROGRAM COMMENCES OPERATION ON JANUARY 1, 2021 AND IS TO BE ADMINISTERED BY THE ASSOCIATION ON BEHALF OF THE NEW HAMPSHIRE DEPARTMENT OF INSURANCE. THE REINSURANCE PROGRAM WILL REIMBURSE ISSUERS WHO OFFER COMPREHENSIVE, MAJOR MEDICAL PLANS IN NEW HAMPSHIRE'S INDIVIDUAL MARKET THAT ARE PART OF THE SINGLE-RISK POOL. PAYMENTS TO CARRIERS ARE TO BE CALCULATED BASED ON A PERCENTAGE (COINSURANCE PERCENTAGE) OF THE ANNUAL CLAIMS THAT ISSUERS INCUR FOR COVERAGE UNDER SUCH PLANS BETWEEN A SPECIFIED LOWER THRESHOLD (ATTACHMENT POINT) AND UPPER THRESHOLD (REINSURANCE CAP). THE REINSURANCE PARAMETERS ARE TO BE DETERMINED EACH YEAR BY THE INSURANCE DEPARTMENT BY MARCH 31 OF THE PRIOR YEAR BASED ON RECOMMENDATIONS OF THE BOARD OF DIRECTORS OF THE ASSOCIATION AND THE COMMISSION OF THE STATUS OF HEALTH COVERAGE MARKETS FOR INDIVIDUAL AND SMALL EMPLOYERS. THE RESTATED PLAN, AS AMENDED, REQUIRES THAT ALL FUNDING COLLECTED FOR THE REINSURANCE PROGRAM WILL BE PAID OUT (FOR PAYMENTS TO ISSUERS AND FOR PROGRAM ADMINISTRATION) FOR THE YEAR FOR WHICH IT IS COLLECTED, BUT NO ADDITIONAL STATE FUNDS WILL BE PROVIDED FOR THE REINSURANCE PROGRAM. THE ASSOCIATION'S OBLIGATION TO MAKE PAYMENTS TO ISSUERS UNDER THE REINSURANCE PROGRAM IS LIMITED TO THE EXTENT OF FUNDING RECEIVED BY THE ASSOCIATION IN CONNECTION WITH THE REINSURANCE PROGRAM. THE ASSOCIATION IS CURRENTLY SEEKING RECOGNITION FROM THE INTERNAL REVENUE SERVICE TO BE RECOGNIZED AS A TAX-EXEMPT SOCIAL SERVICE ORGANIZATION DESCRIBED UNDER SECTION 501(C)(4) OF THE TAX CODE FOR THE PERIOD OF AUGUST 1 THROUGH DECEMBER 31, 2020, AND ANUALLY THEREAFTER.
FORM 990, PAGE 1, PART I, LINE 6 VOLUNTEERS ARE ON THE BOARD OF DIRECTORS AND PERFORM EXECUTIVE DUTIES.
FORM 990, PAGE 2, PART III, LINE 2 THE ASSOCIATION OPERATES THE NEW HAMPSHRIE REINSURANCE PROGRAM AS DESCRIBED IN PART III, LINE 4B. BECAUSE THE REINSURANCE PROGRAM HAS BEEN ADDED TO THE ASSOCIATION'S OPERATIONS, THE ASSOCIATION IS IN THE PROCESS OF COMPLETING AND FILING FORM 1024-A WITH THE INTERNAL REVENUE SERVICE TO SEEK RECOGNITION AS A SOCIAL SERVICES ORGANIZATION EXEMPT FROM FEDERAL INCOME TAXATION UNDER SECTION 501(C)(4) OF THE TAX CODE. THE ASSOCIATION IS SEEKING SUCH RECOGNITION AS OF AUGUST 1, 2020, THE DATE BY WHICH ALL CONDITIONS TO THE OPERATION OF THE REINSURANCE PROGRAM WERE SATISFIED. FROM OCTOBER 1, 2016 THRU AUGUST 1, 2020, ASSOCIATION ASSERTED ITS EXEMPTION FROM FEDERAL INCOME TAX UNDER SECTION 115 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "TAX CODE"), AS AN AFFILIATE OF A GOVERNMENTAL UNIT IN SUPPORT OF THE NEW HAMPSHIRE MARKETPLACE PREMIUM ASSISTANCE PROGRAM.
FORM 990, PAGE 6, PART VI, LINE 3 THE ORGANIZATION HIRES A MANAGEMENT COMPANY FOR EXECUTIVE DIRECTOR AND ASSESSMENT COLLECTION SERVICES. THE BOARD OF DIRECTORS OVERSEES THE OPERATIONS OF THE MANAGEMENT COMPANY.
FORM 990, PAGE 6, PART VI, LINE 7A THE COMPOSITION OF THE BOARD OF DIRECTORS IS ESTABLISHED BY THE FOLLOWING: (I) 3 DIRECTORS ELECTED BY WRITERS OF GROUP HEALTH INSURANCE; (II) 2 DIRECTORS ELECTED BY WRITERS OF INDIVIDUAL HEALTH INSURANCE; (III) 2 ADDITIONAL DIRECTORS IF ELECTED BY BOTH THE GROUP HEALTH INSURANCE WRITERS AND INDIVIDUAL HEALTH INSURANE WRITERS; AND (IV) 4 DIRECTORS APPOINTED BY THE INSURANCE COMMISSIONER
FORM 990, PAGE 6, PART VI, LINE 11B A COPY OF THE 990 IS PRESENTED TO THE FINANCE COMMITTEE BEFORE IT IS FILED. THE FINANCE COMMITTEE REVIEWS THE RETURN FOR ACCURACY AND REPORTS ITS FINDINGS TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS APPROVES THE 990 BEFORE IT IS FILED.
FORM 990, PAGE 6, PART VI, LINE 12C THE CONFLICT OF INTEREST POLICY IS PART OF THE ETHICS POLICY WHICH REQUIRES THE ORGANIZATION TO PERFORM AN ANNUAL UPDATE AND DISCLOSURE.
FORM 990, PAGE 6, PART VI, LINE 19 GOVERNING DOCUMENTS ARE HELD IN CARE OF HELMS & COMPANY IN CONCORD, NH AND ARE AVAILABLE UPON REQUEST. FORM 990 IS AVAILABLE ON THE NHHP WEBSITE.
FORM 990, PART XI, LINE 9 SUPPORT PRIOR TO 8/1/2020 EXEMPT UNDER SECTION 115 7,722,275 EXPENSES INCURRED PRIOR TO 8/1/2020 EXEMPT UNDER SEC. 115 -7,722,275
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2020


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