Colleen C. DiPirro, president and CEO if the Amherst Chamber of Commerce provides the following op-ed in opposition to “prior approval” in the Buffalo News.

“Gov. David A. Paterson would like to dust off and reinstate “prior approval,” a long-abandoned law that would give his superintendent of insurance control over health insurance rate increases. When prior approval was in place, insurers needed the State Insurance Department’s authorization before instituting price increases. Insurers were called to appear at public hearings where they’d present data to support their proposed new premiums.

The Amherst Chamber of Commerce opposes the governor’s plan. We remember the negative impact prior approval had on business owners.

Prior approval hearings were always political. In election years, the department would keep premium increases minimal despite being presented data on the rising cost and increased usage of health care goods and services. The following year, the department would be forced to deal with the consequences of its artificially suppressed rates by approving drastic increases to cover the insurer’s needs for the coming year and shortfall from the current year.”

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