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Washington House Approves Bill To Require Insurance Commissioner Approval For Individual Policy Rate Increases

The Washington state House on Friday voted 68-21 to pass a bill (SB 5261) that would require insurers to receive approval from the state insurance commissioner before changing premium rates for individual health plans, the Seattle Times reports. Gov. Chris Gregoire (D) is expected to sign the bill into law, according to the Times. In January, the state Senate voted 31-18 to approve the measure. The bill would give state Insurance Commissioner Mike Kreidler the ability to reject "unreasonable" rate proposals and compare insurers' claims costs with projections. He also would be able to order insurers to return excess profits to the state.

The bill's supporters hope the measure will slow rising premiums, which have increased as much as 20% in the past year for some policyholders. However, insurers say the bill will penalize them while ignoring the causes of high health costs. Jeff Roe, president and CEO of LifeWise Health Plan of Washington, said, "Suppressing rates artificially does not address the underlying issues," adding, "This is like trying to avoid a storm by demanding a different weather forecast." Roe predicted the bill will "reinforce Washington's reputation as a highly regulated insurance market" and ultimately hurt policyholders by decreasing competition and keeping new insurers out (Song, Seattle Times, 3/4). Editorial
It is "very telling" that critics of the legislation "say that having to justify rate increases will serve to discourage companies from providing individual policies," according to a Seattle Post-Intelligencer editorial. "It almost makes it seem like being asked to play fair would make those insurers not want to play at all, which we strongly suspect won't be the case," the editorial states, adding that insurers "just might find themselves with slightly smaller surpluses, and possibly, more satisfied customers." The editorial concludes, "Think of this as one small step in the right direction: health care reform" (Seattle Post-Intelligencer, 3/3).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.





Washington, casa a aprobat proiectul de lege pentru a solicita aprobarea de asigurare, comisarul pentru politicã individualã creºte rata - Washington House Approves Bill To Require Insurance Commissioner Approval For Individual Policy Rate Increases - articole medicale engleza - startsanatate