Each formula or method for calculating the schedule of charges must be accompanied by adequate detail including assumptions to justify that the charges produced by the formula or method are not excessive, inadequate, or unfairly discriminatory as defined in §11.706 of this title (relating to Factors To Be Considered in Determination of Reasonability of Rates).

1. (1) The calculations used to produce any schedule of charges as defined in §11.2(b) of this title (relating to Definitions) must be available at the HMO's office.
2. (2) Any changes in the assumptions in the formula or method for calculating the schedule of charges due to special characteristics of a particular group need not be filed, but justification of the variances must be retained at the HMO's office so that compliance with §11.706 of this title (relating to Factors To Be Considered in Determination of Reasonability of Rates) may be checked.

Source Note:The provisions of this §11.703 adopted to be effective January 1, 1980, 4 TexReg 4626; amended to be effective August 17, 1992, 17 TexReg 5359.