Despite objections from the Business Council and other business organizations, the legislature passed a bill which will reinstate a price control mechanism known as “prior approval” on community rated health insurance plans. Prior approval is not a new concept having been in place in the 1980s and 90’s. Although it is billed as a means to “hold health insurance plans accountable”, it more often results in premium rate suppression responding to political winds, more than sound actuarial data in support of rate filings.

“Government actions such as the $4.2 billion in health insurance taxes, including $700 million in new and increased taxes passed as part of last year’s state budget, along with the increasing number of insurance mandates continue to drive up health insurance premiums,” said Kenneth Adams, president and CEO of The Business Council in opposing this legislation.

The Business Review’s Adam Sichko has more on the bill. His story can be read here.

The Business Council’s memo in opposition to the bill can be read here.