Nonprofit Hospital Service Corporations--rate Review Act
This act aims to enhance oversight and ensure that rate-setting practices are transparent and accountable. By obliging corporations to provide notice of rate increases to subscribers and requiring public hearings, S2767 empowers consumers and seeks to foster a more competitive market. Stakeholders, including policyholders and advocacy groups, are given a platform to express their views before rate increases are approved, thereby promoting consumer protection.
Bill S2767, named the Nonprofit Hospital Service Corporations Rate Review Act, amends existing Rhode Island laws concerning health insurance rates charged by nonprofit hospital service corporations. It introduces a structured framework for rate proposals, mandating that any corporation must file proposed rates or rating formulas with the health insurance commissioner. Alongside this, the bill stipulates the necessity of public hearings, which must occur within 60 days following the filing to allow for stakeholder input and transparency in the rate-setting process.
Notably, some members of the legislature expressed concerns that mandating public hearings for all significant rate changes could lead to increased administrative costs and possible delays in rate approval. Moreover, there is apprehension that while consumer participation is important, it may hinder swift adjustments needed in response to market conditions. Critics argue that this could potentially discourage nonprofit service corporations from pursuing necessary rate increases to maintain operational sustainability.