OLYMPIA – For consumers scratching their heads as to why their health insurance premiums skyrocket every year—in some cases by double digits—the House of Representatives approved a bill today to increase transparency.
“Our health insurance choices affect our physical and financial health in profound ways, yet consumers are in the dark. We see our premiums skyrocketing every year, but we have no idea why,” said Rep. Christine Rolfes, D-Bainbridge Island, the bill’s sponsor. “With this bill, consumers will have a seat at the table.”
When insurers want to adjust their rates they must submit detailed information to the Office of the Insurance Commissioner (OIC), which has the authority to approve or deny the changes for individual and small-group health plans. That information is confidential now, but the bill approved by lawmakers today would disclose those filings to the public, enabling consumers to understand where their money is going and make informed choices. This model has worked successfully in Oregon for years.
“For many families, health insurance is the largest bill they pay – next to their mortgage. They deserve to see what’s behind the rate they’re paying,” said Insurance Commissioner Mike Kreidler. “Today’s vote in favor of making health insurance filings transparent moves us one step closer to ending the secrecy of health insurance rates.”
The legislation is comprised of two key provisions:
- Allows consumers to review the premium-increase request within 10 days of it being filed with the OIC
- Makes the information in the final rate decision easily available to the public
Lawmakers passed House Bill 1220 today on a 57-40 vote, sending it to the Senate for further consideration.