WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

Health insurance rate secrecy to end, Legislature decides

OLYMPIA – The Senate this afternoon overwhelmingly passed a bill that increases the transparency of health insurance rate hikes. It now goes to the House of Representatives, which originally approved it on March 4, for concurrence and then to the governor, who is expected to sign the measure into law.

“Consumers have now won some control over one of their biggest monthly expenses,” said Rep. Christine Rolfes, D-Bainbridge Island, the sponsor of House Bill 1220. “They need to know why their rates are skyrocketing year after year. I appreciate state Insurance Commissioner Mike Kreidler for bringing this bill to my attention and for being a champion for consumers’ rights.”

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.

The legislation is comprised of two key provisions:

  • Allows consumers to view the premium increase request within 10 days of their insurance company filing its request with the OIC. Rather than being notified after the rate increase has been approved and gone into effect, consumers will be able to shop around if necessary beforehand.
  • Makes the information included in the application and final rate decision easily available to the public. This information was previously considered to be a “trade secret.”

The Senate passed the bill on a 48-1 vote this afternoon, following the House’s 57-40 vote on March 4. The House could concur as soon as tomorrow, sending the bill to the governor’s desk for final approval.