Connecticut Senate Bill SB00009

Connecticut 2015 Regular Session

• Introduced: 1/7/15
• Refer: 1/7/15
• Refer: 1/14/15
• Report Pass: 3/12/15
• Refer: 3/23/15
• Report Pass: 3/30/15

Caption

An Act Concerning The Rate Approval Process For Certain Health Insurance Policies.

Impact

The enactment of SB00009 would significantly impact how health insurance companies operate in Connecticut, particularly in how they set and communicate pricing for their policies. By establishing a more rigorous approval process, the bill aims to prevent excessive or discriminatory premium rates that could negatively affect consumers. Furthermore, the bill calls for annual reporting by the Insurance Department on all rate filings, enhancing oversight and accountability within the health insurance industry. This increased regulatory scrutiny is expected to protect consumers from unfair pricing practices and ensure more equitable access to health insurance.

Summary

Substitute Bill No. 9, known as SB00009, aims to modify the rate approval process for specific health insurance policies in Connecticut. The primary objective of the bill is to ensure that rate filings from health insurance companies must be approved by the Insurance Commissioner before they can take effect. This approval process includes requirements for transparency, such as needing to disclose proposed rate changes to consumers and detailing the actuarial basis for such rates. Additionally, the bill specifically applies to certain types of insurance and mandates stricter guidelines regarding the approval of Medicare supplement policies, which cannot use age or health-related factors in rate determinations.

Sentiment

Discussion around the bill reveals a largely supportive sentiment among consumer advocates and some legislators, who see it as a critical step towards enhancing consumer protections in health insurance. They argue that the bill is essential for maintaining affordable access to care, particularly for vulnerable populations reliant on Medicare supplements. However, there are concerns from the insurance industry about the increased bureaucratic requirements. Opponents worry that the heightened regulations might lead to increased operational costs for insurers, which could be passed on to consumers in other ways.

Contention

Notable contention points include concerns over the balance between adequate consumer protections and the operational flexibility for insurance providers. Some legislators argued that while consumer protections are vital, overly stringent requirements could discourage companies from offering certain products or entering the state market altogether. Additionally, the provision that prohibits using age or health-related factors in determining rates for Medicare supplement policies sparked debate, as some argued that these factors could be pertinent in fairly assessing risk and setting appropriate premiums.