Connecticut House Bill HB05897

Connecticut 2011 Regular Session

• Introduced: 1/24/11
• Refer: 1/24/11

Caption

An Act Concerning Health Insurance Rate Increases And Advance Notice.

Impact

Should the bill pass, it would reflect a substantial shift in how health insurance premium increases are communicated to consumers. Initiating a requirement for prior notification means that policyholders will be better informed about changes in their health care costs, which could lead to greater consumer control and ability to shop for alternative insurance options if necessary. This change may also incentivize insurance providers to consider the timing and scale of premium increases more judiciously.

Summary

House Bill 05897 seeks to amend current health insurance regulations by mandating that insurance companies provide a minimum of sixty days' advance notice to policyholders if they intend to increase premiums by more than ten percent. This bill is introduced with the intention of enhancing transparency and allowing consumers to prepare for potential financial impacts related to premium hikes. The need for such a legislative measure arises from concerns amongst stakeholders that sudden premium increases can significantly affect individuals and families' budgeting and financial planning.

Contention

The bill has ignited debate among insurance industry representatives and consumer advocacy groups. Proponents argue that the bill is essential for protecting consumers from abrupt financial strain due to unforeseen premium hikes and holds insurers accountable for their pricing strategies. Conversely, opponents, such as some representatives from the insurance sector, may contend that this requirement could lead to unintended consequences, such as increased administrative burdens and potentially higher costs for consumers if insurers choose to preemptively raise premiums to offset perceived risks. This divergence of opinion illustrates the ongoing tension between consumer protection and industry regulation.