As medical costs and health insurance premiums continue to rise, more states are considering giving insurance regulators authority over health insurance rate increases, with 29 states doing so already. Kansas Insurance Commissioner Sandy Praeger, chair of the National Association of Insurance Commissioners’ (NAIC) health insurance and managed care committee, says, “We need to help our [insurance] commissioners get more authority, and we’ll look at that.” However, she says that such authority involves collaboration among commissioners and state lawmakers and that rate increases necessary for solvency should not be rejected. Praeger adds that the NAIC will consider “minimum standards” for review periods and actuarial justification for rate hikes, working in conjunction with the U.S. Department of Health and Human Services.

State regulators are seeing a lot of “political pressure,” she acknowledges, in light of the “perfect storm” of economic problems and increased public awareness of health plan rate hikes, especially in the individual market.

States Seek More Rate Authority (AIS Health 5/6/10)

May 12, 2010