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Editorial: Editorial: A brighter light shines on health insurance
Health insurance rate-setting, once a black box, lost its mystery on July 1.
A new state transparency law gives the public complete access to the information insurers file with the Washington insurance commissioner. Several companies voluntarily complied before the law took effect. Page after page on the old forms is topped with the warning “Not for Public Disclosure.”
Not anymore.
What have the companies been hiding? Boilerplate mostly, but the language is no more turgid than the fine print on the average home and automobile insurance policies. The filings include balance sheets, claims histories, proposed changes in policies and even agent commissions.
For those unwilling to wade through the 100-odd pages of each filing, one-page summations are available. The information includes the rate increase requested, number of people who will be affected, how much money is used to pay claims and administrative costs, and how much the companies expect their medical costs will climb.
Kaiser Foundation, for example, projects a 6 percent increase in medical costs for small group plans, but 8 percent for individuals. Regence Blue Shield expects a 13.5 percent jump for individuals. All the insurers are seeking double-digit premium hikes.
Unfortunately, Premera and Group Health, which serve the most Spokane-area residents, have not yet shown their hands.
Group Health’s most recent rates were confirmed before the disclosure requirement was implemented. Premera will not file its rate revisions until the fall.
Insurance Commissioner Mike Kreidler has already rejected one proposal because it did not meet disclosure requirements.
The information is available at the commission’s Web site, www.insurance.wa.gov., where consumers will be able to submit their comments.
They will also be able to see the commissioner’s memo explaining whatever action is taken on the rate proposals.
Some of those capabilities have not yet been built into the site. When they are available, public participation in the rate-setting process will become more important as federal health care reforms are implemented. If the process is not interrupted by the 2012 presidential election, state health insurance exchanges will be launched in 2014. States where consumers do not have adequate opportunities to comment may lose their rate-setting authority altogether.
Oregon considered additional citizen input so important regulators there hired a public interest group to help solicit comment, and retain its own actuary to examine rates. On Tuesday, the Insurance Division cut a proposed 22.1 percent increase from Regence down to 12.8 percent. About 800 residents submitted comments.
With health insurance facing revolutionary changes in the United States, transparency never looked so good.