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BLUE CROSS OF NORTHEAST OHIO v. RATCHFORD

No. 80-243.

64 Ohio St. 2d 256 (1980)

BLUE CROSS OF NORTHEAST OHIO, APPELLEE, v. RATCHFORD, SUPT., APPELLANT.

Supreme Court of Ohio.

Decided December 30, 1980.

Attorney(s) appearing for the Case

Messrs. Vorys, Sater, Seymour & Pease, Mr. Robert E. Leach, Mr. James P. Kennedy and Mr. Michael J. Canter, for appellee.

Mr. William J. Brown, attorney general, and Mr. W. Sean Kelleher, for appellant.

CELEBREZZE, C. J.

Pursuant to R. C. 1739.051, a hospital service association, such as Blue Cross, can not adjust premium rates unless the Superintendent of Insurance finds that the proposed rates are "lawful, fair and reasonable."

R. C. 1739.01 (L) defines a lawful, fair and reasonable rate as one "that is in accordance with sound actuarial principles and reflects a good faith effort * * * to control costs * * *."

R. C. 1739.01 (M) states:

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