Rep. Jan Schakowsky (D-IL) | Courtesy of the House of Representatives
Rep. Jan Schakowsky (D-IL) | Courtesy of the House of Representatives
U.S. Rep. Jan Schakowsky (D-IL) introduced the Health Insurance Rate Review Act of 2015 on Oct. 8.
The bill would give the Secretary of Health and Human Services the authority to modify or block premium insurance increases that are considered unreasonable in states where insurance regulators do not have the power to do so. A companion bill has also been introduced by Sen. Dianne Feinstein (D-CA) in the U.S. Senate.
State regulators in New York and Connecticut have been successful in limiting proposed premium increases for 2016: In New York, when insurers requested a 13.5 percent increase, regulators only approved a 7.1 percent increase. United Healthcare also wanted to increase their premium by 12.4 percent; however, after review, Connecticut regulators approved a 5.5 increase instead.
“It is unacceptable that in many states, consumers are at the mercy of insurance companies who continue to raise premiums because there is no authority to block unfair rates,” Schakowsky said. “In my home state of Illinois, insurance companies are trying to increase premiums by as much as 38 percent. It is time for us to ensure that every consumer, regardless of where they live, is not subjected to unjustifiable premium increases.”
Schakowsky notes that insurance rates have been increasing slowly due to the Affordable Care Act.
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