An Act Requiring The Insurance Commissioner To Consider Affordability In Reviewing Individual And Group Health Insurance Policy Premium Rate Filings.
The bill, if enacted, will have a significant impact on state laws concerning the oversight of health insurance premiums. Effective from October 1, 2020, any health insurance policies delivered or issued in the state will require prior approval from the Insurance Commissioner. This will further empower the Commissioner to disallow rates that do not meet the new standards of affordability and fairness. As a result, consumers could potentially experience relief from skyrocketing health insurance costs.
SB00322 is an act aimed at mandating the Insurance Commissioner to consider affordability while reviewing individual and group health insurance policy premium rate filings. This bill seeks to address the rising cost of health insurance and ensure that premium rates are reasonable, preventing excessive, inadequate, or unfairly discriminatory rates. The act is set to amend existing regulations related to the approval of insurance policy rates and establish clearer standards for ensuring that rates remain affordable for consumers.
Notably, the bill has sparked discussions surrounding the balance between regulation and market forces. Supporters argue that the legislation will enhance consumer protection and increase access to affordable healthcare options. However, some critics believe that it could result in reduced competition among insurers, possibly leading to fewer options for consumers. The contention lies in finding a balance that affords consumer protection without stifling market innovation and competition within the insurance industry.