SB299 (2006) Detail

Relative to health insurance rate changes.


SB 299-FN – AS INTRODUCED

2006 SESSION

06-2680

01/10

SENATE BILL 299-FN

AN ACT relative to health insurance rate changes.

SPONSORS: Sen. Fuller Clark, Dist 24; Rep. Marshall Quandt, Rock 13; Rep. DeJoie, Merr 11; Rep. Langley, Rock 18

COMMITTEE: Banks and Insurance

ANALYSIS

This bill clarifies the procedures that insurers must follow for health care rate changes and renewals.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2680

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to health insurance rate changes.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Procedure for Health Insurance Rate Changes. Amend RSA 415 by inserting after section 1 the following new section:

415:1-a Procedure for Health Insurance Rate Changes; Renewals. Notwithstanding any provision of law to the contrary, no insurer issuing or renewing any policy of health insurance providing benefits for medical or hospital expenses shall file a rate change more than twice per year, which change shall be filed with the commissioner 90 days in advance of such proposed rate change. The commissioner shall hold a public hearing on each rate change requested and any rate change which is approved shall only take effect on January 1 or July 1. Insurers shall send their insureds renewal notices at least 60 days prior to the expiration date of the policy.

2 Health Service Corporations. Amend RSA 420-A:2 to read as follows:

420-A:2 Applicable Statutes. Every health service corporation shall be governed by this chapter and the relevant provisions of RSA 161-H, and shall be exempt from this title except for the provisions of RSA 400-A:39, RSA 401-B, RSA 402-C, RSA 404-F, RSA 415-A, RSA 415-F, RSA 415:1-a, RSA 415:6, II(4), RSA 415:6-g, RSA 415:6-k, RSA 415:18, V, RSA 415:18, VII(g), RSA 415:18, VII-a, RSA 415:18-a, RSA 415:18-j, RSA 415:18-o, RSA 415:22, RSA 417, RSA 417-E, RSA 420-J, and all applicable provisions of title XXXVII wherein such corporations are specifically included. Every health service corporation and its agents shall be subject to the fees prescribed for health service corporations under RSA 400-A:29, VII.

3 Health Maintenance Organizations. Amend RSA 420-B:20, III to read as follows:

III. The requirements of RSA 400-A:39, RSA 401-B, RSA 402-C, RSA 404-F, RSA 415:1-a, RSA 415:6-g, RSA 415:18, VII(g), RSA 415:18, VII-a, RSA 415:18-j, RSA 415-A, RSA 415-F, RSA 420-G, and RSA 420-J shall apply to health maintenance organizations.

4 Effective Date. This act shall take effect 60 days after its passage.

LBAO

06-2680

12/13/05

SB 299-FN - FISCAL NOTE

AN ACT relative to health insurance rate changes.

FISCAL IMPACT:

The Department of Insurance states this bill will increase state revenue and expenditures, and increase county and local expenditures by an indeterminable amount in FY 2006 and each year thereafter. This bill will have no fiscal impact on county and local revenue.

METHODOLOGY:

The Department states this bill requires the Department to hold a public hearing on every health insurance rate change. This bill limits the carriers’ ability to implement approved rate changes and establishes certain timelines for the review and approval of such requests. The Department reviews approximately 120 major medical type health insurance rate filings a year, and estimates it receives 600 health insurance rate filings a year in total. The Department assumes this bill applies to the larger universe of health insurance rate filings (600 filings). The Department states the structured timeline contained in this bill would cut this volume in half, and estimates 300 public hearings a year. The Department will require three additional hearing officers and three additional paralegals to facilitate the new requirement. The Department estimates the cost of the six additional positions including salary, benefits, equipment, and rent would total approximately $260,000 in FY 2006 and increase by 3% annually thereafter. The Department is funded through assessments against insurance companies, who in turn build these costs into their premiums. Additional assessments would increase state revenue, and could increase county and local expenditures as the result of premium increases.