WASHINGTON D.C. –-(ENEWSPF)–October 8, 2015. Rep. Jan Schakowsky today introduced the Health Insurance Rate Review Act of 2015 to allow the Secretary of Health and Human Services to block or modify unreasonable health insurance premium increases in states where insurance regulators lack the authority to do so. Senator Dianne Feinstein (D-CA) introduced companion legislation in the Senate.
Rep. Jan Schakowsky released the following statement on introducing the Health Insurance Rate Review Act:
“When individuals, families and small business owners purchase health insurance, they deserve to know that the premiums they pay are reasonable,” said Rep. Schakowsky. “The evidence shows that health consumers benefit if they live in states where insurance regulators have and use the authority to prevent unreasonable price hikes. Unfortunately, in too many states like Illinois that authority is missing. This bill is a common-sense solution that gives the Secretary of Health and Human Services backup authority to prevent excessive premiums because everyone – no matter where they live or do business – deserves reasonable insurance rates.”
“There is no question that the Affordable Care Act is holding down health insurance rate increases. Insurance premiums are increasing at the slowest rate in decades,” said Senator Feinstein. “To continue to build on the law’s success, the Health and Human Services Secretary should have the ability to reject increases that are determined to be excessive. This policy is already in place in many states and the benefits to consumers are clear.”
“It is unacceptable that in many states, consumers are at the mercy of insurance companies who continue to raise premiums because there is no authority to block unfair rates,” said Schakowsky. “In my home state of Illinois, insurance companies are trying to increase premiums by as much as 38 percent. It is time for us to ensure that every consumer, regardless of where they live, is not subjected to unjustifiable premium increases.”
Many state insurance regulators already have the ability to reject unreasonable health insurance rate increases, resulting in clear benefits to consumers. Insurers in New York requested 13.5 percent increases, on average, for 2016 premiums. Regulators disagreed and reduced the increase by nearly half, to 7.1 percent. In Connecticut, a United Healthcare plan wanted to raise rates by 12.4 percent for 2016. After regulators reviewed the request, a 5.5 percent increase was approved.
“I believe consumers in every state should benefit from such review, whether through state insurance departments or, if necessary, through back-up federal authority. My bill would provide that protection,” said Rep. Schakowsky.
Source: www.schakowsky.house.gov
