House Approves Bill Prohibiting Some Insurers from Basing Rates on Demographics
A bill that would prevent health insurers from basing rates on demographic factors was approved by the Pennsylvania House of Representatives 131-72 on April 1, 2008 and now goes to the Senate.
House Bill 2005 would not permit large health insurance companies to adjust rates for individuals and small groups because of health, age, gender, or other demographic factors of plan participants.
The bill also would require insurers to spend 85 cents of every premium dollar on health care, not overhead or profits. It would permit the insurance commissioner to review whether insurers have taken steps to reduce costs, such as efforts to reduce hospital-acquired infections or improve manage chronic disease management.
A provision that would prevent insurers from temporarily denying participants coverage because of pre-existing conditions sparked debate. Some House Republicans argued that this provision would be similar to allowing an uninsured driver to crash a car and then obtain insurance coverage for it. Despite this concern, 29 Republicans voted with all 102 Democrats to support the bill.
The bill is another piece of Gov. Ed Rendell’s Prescription for Pennsylvania health care reform plan.
Last Updated: 7/31/2008