Lawmakers in Washington State are likely to pass legislation prohibiting any health insurance rate increases without the insurance commissioner’s approval.
The bill passed in the state House of Representatives in a decisive 68 to 21 vote, reported The Seattle Times. Now, it goes back to the state Senate. The Senate already passed the bill in January, but must vote on it again because the House included amendments.
The new measure gives the insurance commissioner, Mike Kreidler, significant power over insurance companies. Along with the power to reject unreasonable rate increases, the commissioner will be able to order that insurers refund excess profits to the state. And he already has the authority to adjust or reject increase for group health plans.
Health insurance carriers are opposed to the legislation. They argue the bill doesn’t address the real reason for rate increases — rising health care costs and spending.
“Suppressing rates artificially does not address the underlying issues. This is like trying to avoid a storm by demanding a different weather forecast, ” said the president of LifeWise Health Plan of Washington, Jeff Roe.
Roe also argued the bill could end up hurting consumers by pushing insurance companies out of the state and reducing competition.
But Commissioner Kreidler countered that the bill only makes him a stronger consumer advocate to make sure rate increases are fair.
The bill has widespread support in the Senate, and Governor Christine Gregoire is expected to sign it when it reaches her desk.