Insurance Rates Spark Debate Soaring Costs Send Lawmakers Back Into War On Health Reform

Sat., Sept. 23, 1995

Associated Press

Skyrocketing health insurance rates for individuals stirred hot words Friday and plunged lawmakers back into the continuing war over health care reform.

The immediate issue was a proposal by health insurers for double-digit rate increases for individuals.

Blue Cross of Washington and Alaska is seeking a 19 percent increase and Pierce County Medical Bureau wants a 34 percent increase. Insurance Commissioner Deborah Senn said she would approve no more than a 12 percent increase for Pierce County Medical and 11.5 percent for Blue Cross.

Both insurers said they will try to override Senn through an administrative, and if necessary, court appeal.

Insurers contend the increases are justified because of surviving elements of a largely repealed health care reform law, especially a provision banning insurance companies from denying coverage for pre-existing conditions. Insurance applicants with pre-existing conditions must be granted coverage after a three-month waiting period.

But Senate Health Committee chairman Kevin Quigley, D-Lake Stevens, contended the industry and the Republican House want to gouge individuals and at the same time use the situation as an excuse to modify or abolish the pre-existing condition law.

Quigley asserts the real problem was the Legislature’s failure this year to pass a law requiring individuals and groups to be in the same risk pool. A shared-risk pool would have kept individual rates down.

Not so, retorted Quigley’s House counterpart, Rep. Phil Dyer, R-Issaquah. He said data shows the root of the high costs for individuals is the pre-existing condition clause.

But Dyer said he nevertheless has “No interest at this time in changing the pre-existing condition provision.”

That view, however, is not shared by the industry.

Basil Badley, a longtime insurance lobbyist, said in an interview that the three-month waiting period is causing financial problems.

, DataTimes

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