Bill Text - SB392 (2010)

(Second New Title) requiring public hearings concerning health care cost increases in health care services and relative to hospital billing for services to uninsured patients.


Revision: March 24, 2010, midnight

SB 392-FN – AS INTRODUCED

2010 SESSION

10-2776

01/04

SENATE BILL 392-FN

AN ACT requiring public hearings when insurance companies set base rate increases.

SPONSORS: Sen. Fuller Clark, Dist 24; Sen. Hassan, Dist 23; Rep. Rosenwald, Hills 22

COMMITTEE: Commerce, Labor and Consumer Protection

ANALYSIS

This bill requires an insurer to petition the insurance commissioner for a public hearing before it sets a base rate increase for health insurance. The commissioner shall hold a public hearing and publish notice of such in a newspaper of general circulation 14 days prior to the hearing and issue a press release to all major newspapers in New Hampshire.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2776

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT requiring public hearings when insurance companies set base rate increases.

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

1 New Section; Public Hearings Required for Base Rate Increases. Amend RSA 400-A by inserting after section 39-a the following new section:

400-A:39-b Hearings Required for Base Rate Increases. An insurer shall petition the insurance commissioner before the insurer sets its base rate increase for health insurance to request a public hearing on such increase. The commissioner or the commissioner’s authorized representative shall schedule a public hearing in Concord or at a location nearest the health insurer as determined by the commissioner, by fixing its time and place and posting public notice in a newspaper of general circulation at least 14 days prior to the date for which it is scheduled and issue a press release to all major newspapers in New Hampshire. The hearing date shall be set for a time not to exceed 6 weeks from the date the petition was received. At such hearing, it shall be incumbent upon the health insurer to present evidence relative to the reasons for such increase to its base rate.

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

LBAO

10-2776

Revised 01/21/10

SB 392 FISCAL NOTE

AN ACT requiring public hearings when insurance companies set base rate increases.

FISCAL IMPACT:

      The Insurance Department states this bill will increase state restricted expenditures and state restricted revenue by $84,608 in FY 2011, $87,020 in FY 2012, $91,177 in FY 2013 and $95,568 in FY 2014. The Department also states this bill may have an indeterminable fiscal impact on state revenue and may increase county and local expenditures by indeterminable amount in FY 2011 and each year thereafter. There is no fiscal impact on county and local revenue.

METHODOLOGY:

    The Insurance Department states this bill will require the Department to hold public hearings when carriers request changes to their base rates. There are approximately 12 insurance carriers participating in markets where base rates are regulated. These insurance carriers generally file changes to base rates on a quarterly basis, which would result in 48 public hearings a year (12 insurance carriers * 4 quarters). The Department assumes it will need to hire a hearing officer (Labor Grade 26) position to manage the workload of this bill. The Department assumes the hearing officer will start on July 1, 2010. The Department estimates the following costs associated with the position:

 

FY 2011

FY 2012

FY 2013

FY 2014

Salary (hearing officer, LG 26)

$46,722

$48,770

$50,915

$53,138

Benefits

23,386

25,125

27,009

29,046

Current Expenses (including hearing related expenses)

10,000

10,125

10,253

10,384

Equipment

1,500

0

0

0

Office Space

3,000

3,000

3,000

3,000

Total

$84,608

$87,020

$91,177

$95,568

    The Department states the increased costs to the Department will increase the assessments against insurance companies which are typically passed on to the purchasers through premiums. Additionally, the Department assumes the hearings will create an administrative expense to the insurance carriers that may be passed on to purchasers through the premiums. Purchasers may negotiate with the insurance carriers to not accept the full increase the carrier may try to pass on to the purchaser. The Department is not able to determine the impact on revenue. County and local government may have increased expenditures to the extent they have increased premiums as a result of this bill.

    This bill does not contain an appropriation or authorization for positions.