Approval of certain rate increases for health insurance. (FE)
Impact
If enacted, AB791 will significantly affect existing procedures under state law that govern how health insurance premiums are managed. Currently, the law allows insurers to file premium rates within 30 days after they take effect, which this bill would change to a requirement of prior filing. This proactive approach is expected to empower the commissioner to evaluate and address excessive premiums before they impact consumers. The changes might also alleviate concerns regarding sudden large increases in health insurance costs for consumers across Wisconsin.
Summary
Assembly Bill 791 proposes changes to the approval process for premium rates set by health insurance insurers in Wisconsin. This bill mandates that insurers file their premium rates and any changes with the Office of the Commissioner of Insurance (OCI) before those rates can take effect. Notably, any proposed rate increase of 10 percent or more will require explicit approval from the commissioner. Other rate adjustments will be automatically approved unless the commissioner disapproves them within 30 days of filing. This shift aims to enhance regulatory oversight and better protect consumers from excessive or unfairly discriminative rate increases.
Contention
Debates have arisen regarding the balance of regulatory control versus market freedom. Proponents argue that stricter controls are necessary to protect consumers from potentially drastic rate hikes, which can jeopardize their access to affordable health insurance. Opponents, however, may express concerns that such regulatory measures could stifle competition within the insurance market, leading to fewer options for consumers and potentially higher costs in the long run. Some stakeholders worry that requiring prior approval might lead to delays in implementing necessary rate changes.
Authorizes a proposed increase or decrease in a rate for certain kinds and lines of insurance to be implemented pending approval or disapproval by the Commissioner of Insurance. (BDR 57-93)
Relates to motor vehicle insurance fairness; provides that insurance rates shall not be increased based on certain factors; sets forth processes for motor vehicle insurers to have rate increases approved; allows public access in relation to any proposed insurance rate increases; allows members of the public to request permission to intervene in proceedings related to rate increases; directs rules and regulations to be established.
Relates to motor vehicle insurance fairness; provides that insurance rates shall not be increased based on certain factors; sets forth processes for motor vehicle insurers to have rate increases approved; allows public access in relation to any proposed insurance rate increases; allows members of the public to request permission to intervene in proceedings related to rate increases; directs rules and regulations to be established.
Insurance; allowing rates to be excessive; requiring filings with Insurance Commissioner; allowing Commissioner to give written notices; requiring Commissioner to disapprove rates; increasing certain time frames for filings. Effective date.
Article V Convention; process for appointing commissioners and alternate commissioners to represent the State of Alabama at Article V Convention established