North Idaho May Get Insurance Break Well-Received Change In State Law Likely Will Lead To Health Premiums That Match Lower Costs Of Region

A two-line change in an obscure state law could save some North Idaho residents a lot of money on health insurance premiums.

Rep. Jeff Alltus, R-Coeur d’Alene, an insurance broker, quietly pushed the change through last year. Now the measure is moving through the state’s administrative rules process, and it appears on track to take effect July 1.

The change allows companies that provide individual or small-group insurance to add geography as a factor used in determining premiums. Because that wasn’t allowed before, large firms like Blue Cross and Blue Shield had to set the same premium statewide, rather than setting lower rates in areas like North Idaho, where hospital and doctor costs are lower.

“I didn’t think North Idaho should be subsidizing southern Idaho in their insurance premiums,” Alltus said. “Basically, we were paying 10 to 12 percent more in our insurance premiums. Because of the large population down here (in the Boise area), our 10 percent doesn’t subsidize them a whole bunch. They were maybe paying 1 to 2 percent not enough.”

When Alltus brought the bill to a legislative committee, there were some questions as to whether it meant increases in premiums for various legislators’ districts. State insurance officials said the increases likely would be negligible because of the population differences.

Jim Alcorn, director of the state Department of Insurance, brought rules putting the new law into effect to the House Business Committee for review this week. Alcorn said he’s heard no opposition to the change. It merely gives companies the option to charge different rates in different areas. Many are likely to do so, he said.

“Most of them will probably take the option, especially if another company does,” Alcorn said.

The change comes at a time when health insurance premiums nationwide are skyrocketing. Some in Idaho are up by 30 percent or more, Alcorn said.

“I think it’s going to be helpful,” he said.

Alltus said companies that market only to North Idaho have been able to charge the lower premium all along. Group Health is one that serves only the North.

Idaho’s biggest health insurers, Blue Cross and Blue Shield, market statewide.

Alltus said the change probably won’t affect the Lewiston area, where medical costs are similar to those in southern Idaho. Some pockets around the state may also see lower rates like North Idaho, he said.

Alltus said he’s not predicting drops in premiums. “Instead of going up 30 percent, this year’s premiums might only go up 20 percent,” he said.

Soaring drug costs nationwide are among the factors pushing up premiums, Alltus said. He said a typical family now pays about $300 a month for standard group insurance coverage.

His bill last year passed the House 64-4 and passed the Senate unanimously.

, DataTimes