Rep. Schual-Berke: Consumers need a watchdog for rising health insurance premiums

February 29, 2008

OLYMPIA — The House passed Senate Bill 5261 today, giving the Office of the Insurance Commissioner the authority to review the rates of individual health benefit plans.

“Taxpayers deserve a watchdog who can investigate whether premium increases of up to 40 percent are reasonable,” said Rep. Shay Schual-Berke (D-Normandy Park), sponsor of the House companion measure (HB 1234).  “It is unbelievable that a not-for-profit insurer doing business in Washington State can and has raised our citizens’ premiums, while at the same time sending ‘surplus’ dollars from here to subsidize their for-profit affiliate in Arizona.”

The Legislature changed the law in 2000 to prevent the insurance commissioner from regulating the individual insurance market in 2000 after the insurers threatened to leave the state.

In the last year, Regence and Premera have raised individual policy premiums at least 20 percent.  Lifewise has raised premiums up to 40 percent.

“This is the best consumer protection bill we have had this session,” Rep. Schual-Berke said. “Forty-two other states have at least this much if not more oversight of the insurance companies.”

Since 2002, reserves for the largest three health care insurance companies have grown from $833 million to $2.2 billion.

The legislation passed the House by a vote of 68-26.