The senate has passed bills aimed at allowing insurers more leeway in how much to charge consumers. Backers say that will re-introduce market forces and bring down rates for New Hampshire consumers. But Senate Democrats and insurance officials say the changes will price some vulnerable citizens out of the market.
THE CHANGES GO TO THE HEART OF THE STATE’S LANDMARK INSURANCE REFORM LAW OF 1994. THAT LAW AIMED TO PROVIDE AFFORDABLE INSURANCE TO ALL BY PREVENTING INSURERS FROM HIKING THEIR RATES FOR UNHEALTHY PEOPLE. MANY SENATORS STILL TAKE PRIDE IN THAT REFORM, SO SENATE MAJORITY LEADER GARY FRANCOEUR OF HUDSON TOLD HIS COLLEAGUES HE WAS THERE TO PRAISE THE 1994 LAW, NOT BURY IT.
In many respects the 1994 legislation was visionary. // still there were unintended consequences which this bill seeks to address.
THOSE UNINTENDED CONSEQUENCES, FRANCOEUR SAID, INCLUDE DRIVING INSURANCE RATES UP AND DRIVING INSURERS OUT. TO MAKE THE MARKET MORE COMPETITIVE, HE ARGUED, THE STATE MUST ROLL BACK SOME RESTRICTIONS AND ALLOW INSURERS TO VARY THEIR RATES FOR SMALL EMPLOYERS BASED ON FACTORS SUCH AS EMPLOYEE HEALTH, AGE, AND SMOKING. FRANCOEUR SAYS SIMILAR MEASURES HAVE BEEN EFFECTIVE ELSEWHERE.
19 30 these are national models, they have 30 states doing this today, its working there, their rates are lower than ours
FRANCOEUR SAID CAPS ON PREMIUM HIKES WOULD KEEP RATES UNDER CONTROL EVEN FOR PEOPLE ON THE UNHEALTHY END OF THE SCALE. BUT DEMOCRAT KATIE WHEELER OF DURHAM SAID THE REFORMS WOULD PRODUCE MASSIVE PREMIUM HIKES FOR SOME.
11 25 if you have groups that have worse than average health, you’re in deep trouble. the rate shock is going to be unacceptable.
WHEELER QUOTED INSURANCE DEPARTMENT STATISTICS PREDICTING SOME SMALL BUSINESS EMPLOYEES WOULD SEE THEIR RATES MORE THAN DOUBLE WITHIN A FEW YEARS IF THE BILL PASSES. DEPARTMENT OFFICIALS ECHO THAT CONCERN. DEPUTY COMMISSIONER ALEX FELDVEBEL SAYS BESIDES PRICING SOME PEOPLE OUT OF THE MARKET, THE PROPOSED REFORMS WOULD ONLY ATTRACT NICHE INSURERS INTERESTED IN SIPHONING OFF THE YOUNG AND HEALTHY.
We’ve been moving to promote competition based on good mgt, and on efficiency, so generally that’s what we’d like to do and not promote competition based on risk selection.
FRANCOEUR’S BILL PASSED ON A PARTY-LINE VOTE. THE SENATE ALSO PASSED A MEASURE TO REFORM INDIVIDUAL INSURANCE. THAT BILL WOULD ALLOW INSURERS TO REJECT SOME PEOPLE, AND WOULD CREATE A SO CALLED “HIGH-RISK POOL” TO INSURE THOSE WHO CAN’T FIND COVERAGE. THE POOL WOULD BE FUNDED PARTLY BY HIGHER PREMIUMS AND PARTLY BY AN ASSESSMENT ON INSURANCE COMPANIES. LAWMAKERS AND DEPARTMENT OFFICIALS WORKED TOGETHER TO OVERCOME CONCERNS ABOUT THE COST AND QUALITY OF POOL COVERAGE, BUT FELDVEBEL SAYS HE’S STILL WORRIED ABOUT FINANCIAL STABILITY.
. *** the funding needs to be secure so at some futuredate we won’t have to close the pool, which is what some states have done.
STATE OFFICIALS, LAWMAKERS AND INSURERS WORKED FURIOUSLY UNTIL THE LAST MINUTE ON BOTH BILLS. THE MEASURES NOW GO TO THE HOUSE, WHERE MORE CHANGES AND MORE CONTROVERSY ARE EXPECTED. FOR NHPR I’M
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