Colorado may soon have approval power over health insurance hikes
06 05 08 - 13:30
DENVER - Colorado lawmakers voted on Monday night to approve a measure designed to impact how much you pay for health insurance in the future.
House Bill 1389 was passed by the state Senate 23-13 on Monday. It has already passed the state House.
If it is signed by the governor, the measure would require all insurance companies seeking to raise rates to justify those increases before the state's Insurance Commissioner who could reject their arguments. Further, the bill seeks to provide unparalleled transparency to consumers, allowing for people to track health care executive salaries, stock options, and lobbying expenses, in addition to following where health care dollars are spent.
Supporters say it's an opportunity to block "unjust" rate hikes.
"If the current system were working, we wouldn't need to do this, but faith-based approval of trusting insurance companies to regulate themselves (isn't)," said Rep. Morgan Carroll (D-Aurora), who is the House sponsor of the measure. "The fact that we have a rubber stamp, lack of oversight model is literally passing on rates of increase that we cannot sustain. It is causing us to have higher rates of uninsured than the national average. It is causing a lower amount of our premium dollars to be spent on health care. Meanwhile, it's putting the squeeze on business and the squeeze on individuals."
Critics have not targeted the transparency side of the measure, but the regulatory side. They say putting a bureaucrat in control with more regulation in place will send costs soaring even higher.
"Rent control hasn't done anything for affordable or accessible housing in New York City, it won't do anything for affordable or accessible health care in Colorado," said Sen. Shawn Mitchell (R-Broomfield). "This is a good-intentioned idea that's going to cause more problems than it solves. It seems based on the idea that if we put a government regulator in charge of prices, then good things will happen and prices will be reduced. It doesn't work that way. There are lots of factors that drive health care costs and we can't solve that problem having a government regulator veto the rise of the cost.
Carroll points out 38 other states have similar oversight as it relates to health care costs. Mitchell asserts costs have gone up in those states compared to neighboring states that don't have it.
The measure passed the Senate on an initial voice vote last week.
Click here for more information on House Bill 1389.