Mich. Admin. Code R. 390.1803 – Limiting participation; methods; applicant priority for following year.

(1) If it is determined by the board, at any particular time, that either the total number of participants in the trust, in a specific plan or in a type of contract of the trust, or the number of beneficiaries in specific age groups must be limited to maintain the actuarial soundness of the trust, the board, by resolution, may limit the number of new beneficiaries by 1 or more of the following methods:
1. (a) The institution of a system whereby applicants with completed applications related by beneficiary age group, filing date, or other classification determined by the board are selected to be eligible to enter into contracts during a specific enrollment period by a method designed to insure fairness. The board shall determine whether applications may be submitted by mail or in person, or both.
2. (b) The institution of a first-come, first-served process whereby applications for program entry are accepted in the order they are received. The board shall determine whether applications may be submitted by mail or in person, or both. Locations at which applications will be accepted shall be specified in advance.
3. (c) The institution of an open application period whereby, for a limited period of time as specified by the board, all completed applications submitted during the specified period shall be accepted by the trust. The board shall determine whether applications may be submitted by mail or in person, or both. If it is determined by the board, as specified by the actuary, that the actuarial soundness of the trust will not be impaired, the board may accept additional applications received after the application period on a first-come, first-served basis or other basis recommended by the actuary.
4. (d) A combination of any of the methods specified in the provisions of subdivisions (a) to (c) of this subrule.
5. (e) Any other method for limiting participation, if the method does not adversely affect the financial soundness of the trust.
(2) The board may permit applicants who are not accepted to enter into a contract with the trust during a particular year or enrollment period to receive priority consideration for the following year or enrollment period.

History: 1992 AACS.