February 26, 2009

REP. JOHNSON CALLS FOR SCRUTINY OF HEALTH INSURANCE RATE HIKES

State Representative Susan Johnson is co-sponsoring legislation that will hold insurance companies accountable for premium rate hikes.

Rep. Johnson decided to co-sponsor legislation after Anthem proposed a 32% rate increase on individual policies last summer. Under public pressure, the Insurance Department held a public hearing and an approved a rate hike of 16-20%—costing residents thousands of additional dollars in insurance premiums.

“Increasing premiums 20% in one year is simply unacceptable,” said Rep. Johnson. “Why should Connecticut consumers be forced to pay thousands of dollars more each year just to maintain their health insurance when these companies are making record profits?”

Currently, Connecticut law allows insurance company requests for premium increases to go into effect after 30 days if no action is taken by the state Insurance Department. There is no requirement for a public hearing or approval of these requests by the Insurance Department.

An Act Concerning Rate Approvals for Individual Health Insurance Policies (SB 194) eliminates the Insurance Department's ability to allow rate hikes to take effect without a public hearing. The bill also requires insurance companies to disclose documentation in support of rate increases for public scrutiny, limits reasons for a rate increases, and puts burden of proving that an increase is “reasonable” on the insurer. The legislation will also empower the Attorney General and the state Healthcare Advocate to intervene in rate cases and appeal rate decisions to the Superior Court.

Representative Susan Johnson is serving her first term representing the 49th Assembly District in Windham. She serves on the Education, Energy & Technology, and Finance Revenue & Bonding Committees.