Second article from today’s Kaiser Health Policy Report:
Washington: The Washington House on Friday voted 68-21 to pass a bill (SB 5261) to require insurers to receive approval from the state insurance commissioner before changing premium rates for individual health plans. Gov. Chris Gregoire (D) is expected to sign the bill. In January, the Senate voted 31-18 to approve the measure. The bill would give state Insurance Commissioner Mike Kreidler the ability to reject “unreasonable” rate proposals and compare insurers’ claims costs with projections. He also would be able to order insurers to return excess profits to the state.
Supporters hope the measure will slow rising premiums, which have increased as much as 20% in the past year. Insurers say the bill will penalize them while ignoring the causes of high health costs. Jeff Roe, president and CEO of LifeWise Health Plan of Washington, said, “Suppressing rates artificially does not address the underlying issues,” adding, “This is like trying to avoid a storm by demanding a different weather forecast.” Roe predicted the bill will “reinforce Washington’s reputation as a highly regulated insurance market” and ultimately hurt policyholders by decreasing competition and keeping new insurers out.
It is “very telling” critics of the legislation “say that having to justify rate increases will serve to discourage companies from providing individual policies,” according to a Seattle Post-Intelligencer editorial. “It almost makes it seem like being asked to play fair would make those insurers not want to play at all, which we strongly suspect won’t be the case,” the editorial states, adding that insurers “just might find themselves with slightly smaller surpluses, and possibly, more satisfied customers.” The editorial concludes, “Think of this as one small step in the right direction: health care reform.”
Many of us who care deeply about these issues often have the sobering thought:
“Why bother to discuss so-called “health reform” in Massachusetts anymore; it’s all just a rig-job by powerful insiders.”
As soon as I read about about MA Sen. President Theresa Murray’s “bold” cost control plan I wondered why the public hearings on rate increases would only take place for rate increases over 7%? And what teeth do “public hearings” really have? Looks like WA state has politicians who are willing to protect the public interest a lot more than we’re saddled with here in MA. (re in WA it would be required to “receive approval from the state insurance commissioner before changing premium rates”)
This is such a tiresome scenario in Massachusetts. We need Deval Patrick to step up to the plate and tackle the health reform issue by putting people before profits – then we’d recoup the public dollars needed for other spending without having to go down the pathetic road of destination casinos.
The powerful political insiders who are the architects of our state’s inadequate and inherently flawed health “reforms” include insurance companies (espl’y MA BCBS), large hospital chains (espl’y Partners), the politicians whose strings they deftly pull, and health care for all that gives political cover to these sorely inadequate rig-jobs called reform.
If it’s this bad on the state level how are people’s needs ever going to rise above corporate greed on the national level?