Health insurance rate initiative for November

By CMTA Staff

Capitol Update, June 7, 2012

Proponents of the “Insurance Rate Public Justification and Accountability Act” have submitted some 800,000 signatures in an effort to qualify the measure for the November election. The ballot initiative forces health insurance companies to open their books and get approval before raising rates.

The measure requires health insurers to justify premium increases and submit such changes to the Insurance Commissioner prior to taking effect.  It also provides the Insurance Commissioner with the authority to review rate increases and order insurer refunds to consumers if a rate increase is determined to be excessive. In addition, the measure prohibits insurers from determining an individual’s health, automobile and home insurance premium based on their prior coverage history or credit history.

Public hearings on proposed rate increases would be required under the Act and it would make all documents filed by the insurance company on proposed rate increases public record. Currently, there’s no transparency in how health insurance companies set prices and premium rates.

The full text can be found at the Attorney General’s website:

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