Tuesday, 1 April 2008
Colorado Health Bills To Tighten Insurance Regulations
Three new bills from Colorado lawmakers were recently introduced all in an effort to put stricter regulations on health insurance companies.
The first bill, proposed by state House Speaker Andrew Romanoff and Senate Majority Leader Ken Gordon, would require insurers to pay claims without hassle, reported the Denver Post.
Speaker Romanoff argued that insurance companies force some policyholders through a difficult process to get claims paid.
Critics of Romanoff’s bill contend there are already such laws in place.
“It seems to me we’ve got some pretty robust protections in law already, both for providers and for consumers,” said Michael Huotari, executive director of the Colorado Association of Health Plans.
A second bill recently passed in the state House would give the state’s insurance commissioner the authority to more strictly punish insurance companies for dishonest business practices. This measure was designed by Senator Gordon and state Representative Gwyn Green.
The third and most controversial bill was introduced by state Representative Morgan Carroll. This measure would give the state power to reject increases in premiums by insurers.
Representative Carroll supported her bill arguing premiums have gone up 60 percent over a span of five years — when wages only went up 13 percent.
But some healthcare experts point out that health insurance costs are driven by health care costs. Insurance rates, they contend, would decrease if costs of care were controlled.
“It’s the right problem but the wrong solution. Insurance premiums are high, and they have been increasing because healthcare costs are high and increasing,” said Huotari.
Technorati Tags: Colorado health insurance health policy legislation insurance regulation
