GA bill seeks to regulate health rates

A bill introduced in the Georgia General Assembly aims to put the skids on double-digit increases in health insurance premiums in the state.

But opponents fear new regulations could spook some insurance carriers from entering the Georgia market.

If House Bill 923 becomes law, health insurance companies will not be allowed to issue new health insurance products or impose renewal increases on health products until rates have been approved by state regulators. Carriers would have to financially justify rate hike requests. Thirteen states have similar requirements for health insurance carriers.

Critics of the bill say it would artificially lower rates, keep new insurers out of Georgia and drive smaller, less capitalized players out of business. Proponents say the legislation, which has an identical version in the Senate, would hold health insurers accountable for the rates they charge, something that insurers in other markets — such as auto and homeowners — are already subject to. Escalating health insurance premiums have contributed to the uninsured rolls, currently at about 1.7 million in Georgia.

This entry was posted on 19. February 2008 at 10:30 and is filed under health insurance reform, medical. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.